Exclusive: Researchers in China were awarded hundreds of patents as a result of US government funding

The U.S. Defense Department, NASA, and other government agencies have funded research that has resulted in over 1,000 U.S. patents for China-based inventors since 2010, including in sensitive fields such as biotechnology and semiconductors, according to data from the U.S. patent agency.

The U.S. patent data, which has not been previously reported and was reviewed by Reuters, will intensify calls to terminate or renegotiate the historic U.S.-China Science and Technology Agreement. Critics contend that this cooperation agreement disproportionately benefits Washington’s largest geopolitical rival.

These data were provided to the House of Representatives’ select committee on China by the U.S. Patent and Trademark Office this month. It inquired of the agency in June whether U.S. funding had led to Chinese advances, with the intention of emphasizing the risks associated with renewing the pact.

From 2010 to the first quarter of 2024, the patent office issued 1,020 patents that were partially or entirely funded by the U.S. government and involved at least one inventor residing in China, according to the patent office. It is not specified in the data whether the patents are shared by U.S. entities or individuals.

There were 197 patents in pharmaceuticals and 154 in biotechnology, both of which are strategic industries for the United States and China.

The research was bolstered by numerous U.S. government agencies, resulting in 92 patents through Pentagon funding, 175 from Department of Energy funding, and four from NASA financial support. According to U.S. law, the U.S. space agency is prohibited from collaborating with China or Chinese companies.

Out of all agencies, the Department of Health and Human Services provided the most funding, resulting in the development of 356 patents.

“The select committee’s chairman, Republican Representative John Moolenaar, stated in an email to Reuters that it is alarming that U.S. taxpayers have unknowingly funded over 1,000 patents claimed by Chinese entities, with the Department of Defense accounting for nearly 100 of these patents.”

Requests for comment were not responded to by the patent office, NASA, or the departments of defense, energy, and health.

According to the State Department, which is responsible for the renegotiation of the China agreement, it continues to maintain communication with China regarding the agreement. “A department spokesperson stated that the United States is dedicated to the advancement and safeguarding of U.S. interests in science and technology.”

The embassy of China in Washington did not respond promptly to a request for comment regarding the patent data and the agreement.

No specific initiatives or patents were disclosed in the data provided by the patent authority to the House committee in a letter dated Aug. 14. No indication was provided that the financing was a direct consequence of the agreement, which, following its signing in 1979, established the groundwork for a significant increase in academic and commercial exchanges between the United States and China.

Patents were issued for advancements in semiconductors, molecular chemistry, polymers, chemical engineering, nanotechnology, and medical technology.

In 2023, the number of patents of this nature decreased from 99 in 2019, which recorded an annual high, to 61. In 2024, 16 incidents were documented in the first quarter, despite the increased concern of the U.S. government regarding the potential national security hazard posed by Chinese science and technology advancements.

POSSIBLE EXTENSION OF THE CHINA PACT

Previously praised as a stabilizing force in U.S.-China relations, the cooperation agreement has been the subject of criticism from legislators who are concerned about the alleged theft of U.S. intellectual property and the increasing military power of Beijing.

Proponents of the agreement’s renewal contend that its termination would impede academic and commercial collaboration and prevent the United States from being informed about China’s technological advancements.

A second six-month extension to the agreement, which was set to expire in August 2023, concluded on Tuesday. It is possible that a further short-term extension will be granted in the near future, as both parties have attempted to negotiate the terms of the agreement.

Patents identified by the United States Patent Office constitute only a minor portion of China’s global patent portfolio. Inventors are granted exclusive legal rights through patents, which also disclose technical information about their inventions to the public.

In recent years, China has surpassed the United States as the world’s primary filer of patent applications, a metric that indicates globally competitive innovation.