China's State Intellectual Property Office (SIPO) is drafting a new regulation on "service innovation" to encourage companies and researchers in the country to raise their investment in, and the conduct of, innovation. However, the move may also have an impact on the soaring drug discovery industry in China as it will mean higher payments to inventors with knock-on effects on local drug discovery and CROs.

China is planning a new regulation on company employees’ “service innovation” designed to encourage inventors and invention in the country, which are seen as important contributors to economic growth. However, the new rules could also have a significant impact on the conduct of drug discovery research in China.

Despite the compliance storm in China last year, the German firm Merck KGaA is expanding its presence in the country through a new €80 million manufacturing site in Nantong. The company's leadership also recently gathered in the country, which it sees as one of the most important globally.