The European Union Chamber of Commerce in China said in a report that the nation filed more than 1.6 million patent applications in 2011, but just 32% met the highest threshold for patent quality — new inventions. The study noted that while China’s innovation potential is “impressive,” its actual innovation is “overhyped.” “This explosion (of patent applications) has come with a price in terms of the quality and mix of patents. This is not in the right direction,” Chamber Secretary General Dirk Moens said. 65% of patent applications filed by medium and large-sized Chinese state-owned enterprises in recent years have been for the lower end design or utility model patents. The study noted that at least 20 countries have greater innovation potential than China.