Trademark squatting means this: a third party registers your trademark before you do it in bad faith.
Trademark squatting is very serious in China mainly for two reasons: (a) China Trademark Law adopts the first-to-file principle in trademark registration, and (b) the Chinese law does not require “use” as a condition for the trademark registration.
Based on the above two principles, the applicant does not need to prove they have used or intend to use the applied trademark in order to register the proposed trademark in China. As long as there is no prior conflicting trademark and the applied trademark is registrable according to the law, China trademark registration authority will approve the registration. This will cause serious damage to the actual trademark owner and it is important to fight against such action as early as possible.