Abstract: Purpose/Significance With the continued rise of global trade protectionism, and further deepening of China’s reform and opening up, digital trade accelerates the integration and optimization of the global innovation chain, industrial chain and value chain. And it is becoming a new engine for economic growth, as well as a new breakthrough point for intellectual property rights. Design/Methodology This paper deeply analyzes the current situation and problems of China’s intellectual property protection and application in digital trade, and clarifies the strategies for China’s participation in digital trade and protection of intellectual property rights. Conclusions/Findings The study found that the current rules of China’s digital intellectual property are continuously optimized, the regulatory mechanism is gradually improved, the circulation is unhindered, and the market demand is gradually expanding. However, there are also problems such as the lack of close connection between digital rules and international standards, the imperfect judicial protection mechanism for digital property rights, the obvious shortcomings of the digital intellectual property trading system, and the lack of vitality of digital intellectual property-intensive industries. Finally, starting from the dimensions of digital rules, property rights supervision, business environment and knowledge industry, it is proposed that China needs to improve the digital property rights regulation system, improve the enforcement and supervision mechanism of digital property rights protection, improve the marketization level of intellectual property rights in digital trade, and promote the strategies to improve the quality and efficiency of digital knowledge-intensive industries.