China's Ministry of Agriculture and Rural Affairs has announced the first list of crops subject to the new Substantive Derived Variety (SDV) system, marking a formal implementation of the revised Seed Law. This policy is designed to bolster intellectual property protections within the seed industry.

The initial list includes 10 key crops: rice, wheat, and cotton, among others. This was revealed during a press conference on July 27th in Beijing. The SDV system targets new varieties that are developed by making minor modifications to an existing, original variety, where only a few characteristics are changed.

Where to Begin

As China's seed industry moves into a phase driven by independent and original innovation, a more robust protection mechanism is needed. The SDV system requires developers of such derivative varieties to obtain permission from the original variety rights holder before commercialization. They must also agree to share a portion of the revenue, thereby respecting the rights of the original breeder and incentivizing true innovation.

Reasons for Choosing These 10 Crops

Officials cited three main criteria for selecting the first 10 crops: a pressing need within the industry, strong genetic diversity within the species, and the availability of mature variety identification technologies. These crops span five major categories—grain, cotton, oilseeds, vegetables, and fruit—giving the policy broad coverage and strong representation. As of the end of 2025, total variety rights applications for these 10 crops reached 38,600, accounting for 35.5% of all agricultural plant variety applications in China.

To ensure the system is operational, the Ministry has also published guidelines for determining SDVs, established judgment thresholds, set conditions for identification institutions, and created an expert database. Looking ahead, the Ministry plans to gradually expand the scope of crops covered, considering factors like national agricultural conditions, industry needs, breeding capabilities, and technical conditions, until all plant species and genera on the protected list are included. This will encourage original innovation on a much larger scale.