Countries in the middle-income stage of development require a smart approach to their intellectual property (IP) regime that effectively stimulates genuine technological innovation, not just imitation. This strategic shift can allow a latecomer nation to avoid being perpetually stuck in the middle-income stage of development unable to transition to higher income levels (a situation called the “middle-income trap”) and to catch up with forerunners. China, which is currently an upper middle-income country, is grappling with how to best make this transition. Over the last decade, China has embarked on a state-led “indigenous innovation” and intertwined IP development strategy. However, despite this new strategic approach to catch up, China has not yet landed among the ranks of high-income economies and the country’s IP regime has increasingly found itself under fire by foreign governments, firms, and other stakeholders. Amidst this backdrop, this book provides a timely and up-to-date evaluation of the risks that China’s IP regime poses to innovation. Our central finding is that China’s IP regime for innovation has improved notably over time, and therefore is more conducive to innovation than many believe, but it still poses a range of risks. The presence of these risks may, to varying degrees, negatively influence the innovation activities of both foreign and domestic firms, as well as other actors participating in the innovation process. In turn, this poses a larger set of risks to China’s national development. However, with sufficient buy-in from the state, we do not believe that these factors will prohibit a number of smart reforms from being made to improve the ability of China’s IP regime to foster innovation and entrepreneurship.