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ARTICLE · 06 APRIL 2026

Your China Exit Strategy Is Also Your IP Strategy

When companies decide to move production out of China, they usually start with the operational questions. They look for factories in Vietnam, Mexico, India, Thailand, or elsewhere.

GlobalIntellectual Property

Your China Exit Strategy Is Also Your IP Strategy

When companies decide to move production out of China, they usually start with the operational questions. They look for factories in Vietnam, Mexico, India, Thailand, or elsewhere. They bring in engineering, procurement, and quality control. They test samples, work through qualification schedules, and map out transition timing. They focus on supply continuity, pricing, and product quality.

Those issues matter, but they are often not what causes the most damage. The real trouble usually begins when the Chinese factory realizes the relationship is ending. What looked like a routine supply chain transition can quickly become a dispute over trademarks, molds and tooling, product know-how, and contract rights. The companies that get hurt most are often not the ones that stayed in China too long. They are the ones that decided to leave and assumed their legal position would take care of itself.

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