Wednesday, July 30, 2014

The Tralin/Tranlin Paper Story from Shandong, China: An Example of Chinese Intellectual Property Creating Jobs--in the US!

In a previous post, I reported that a huge loan had been given to a Chinese paper company backed by its Chinese IP as collateral. The 8 billion RMB obtained by China's Tralin Paper (Quanlin Paper in Chinese, though they use for their website), one of the biggest IP-backed loans in history, not only shows that Chinese intellectual property is coming of age, but is now being used to bring Chinese technology to the US where it will help create over 2,000 US jobs. Tralin Paper, renaming themselves as Tranlin Paper, has just signed a deal with the State of Virginia, obtaining state support as Tralin/Tranlin/Quanlin invests $2 billion to create a new environmentally friendly paper mill and create over 2,000 US jobs. Recent news  from the office of Governor Terry McAuliffe of Virginia proudly announces the plans of "Tranlin Paper." Also see reports at and

As the West continues to decry Chinese IP and innovation, always viewing China as a source of IP theft and job loss for the US, this story may come as a pleasant surprise. Here is an innovative Chinese company that has created and protected their own IP in a green technology, used innovative financial tools (and plenty of solid Chinese guanxi) to obtain massive financing based on that IP, and then brought their money and their technology to the US to create many jobs. At least some parts of this story are going to be repeated in many ways in days to come. The old paradigm of China lacking IP or lacking valuable IP is fading.

After the announcement at, the first report on this story to the English-speaking world, as far as I know, was my original March 6, 2014 report here at followed by an update here on the Shake Well blog that gave a translation of the Chinese story. It was picked up by Intellectual Asset Magazine and by World Trademark Review, but is still a generally unrecognized but important story.

China still has a long ways to go in overcoming its problems and strengthening innovation and IP, but the trends here are remarkable and should not be discounted. Meanwhile, we should welcome stories like Tranlin's, and watch for many more to come. But for some US companies, this will mean even tougher competition that won't be easily avoided with restrictive, protective tariffs or antidumping legislation.

(Similar account cross-posted on the Shake Well Blog.)

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