🇨🇳⚖On June 1, 2026, new rules for the protection of trade secrets will come into force in China
The State Administration for Market Supervision and Regulation (SAMR) of the People's Republic of China has published the Regulation on the Protection of Trade Secrets.
The new regulatory act will replace the previously valid document from 1995; it introduces clearer criteria for determining the status of information, and also tightens the requirements for copyright holders and the liability for persons committing relevant violations.
The regulation details the concept of a trade secret, the mechanisms for its administrative protection and the specific steps that companies are required to take to maintain the confidentiality of data.
✅ According to the new standards, information can be recognized as a trade secret if three conditions are simultaneously met: 1. Not generally known. 2. Has commercial value. 3. The copyright holder has taken measures to protect it.
🔹For the first time, it is regulated in detail what measures a company must take for information to be considered protected. These include: • Mandatory conclusion of confidentiality agreements with employees and contractors. • Introduction of an internal trade secret regime, including staff training and written notification to all interested parties. • Restriction of physical access to sensitive facilities and production sites. • Technical means of protection: media labeling, data classification, encryption, isolation and restriction of the circle of permitted persons. • Control of digital threats: prohibition of unauthorized copying of data, transfer of information to personal cloud storage and email not controlled by the employer. • Dealing with departing employees: the obligation to demand the return of all media and confirmation of confidentiality after dismissal.
💻 The rules explain specific offenses, many of which are related to modern technologies: • Unauthorized access to storage media. • Bribing, blackmailing or deceiving employees to gain access to sensitive data. • Hacking digital systems (servers, mail, cloud storage, accounts) or installing malware. • Forwarding trade secrets to personal devices or third-party resources.
✏️ An important innovation is the legalization of certain methods of obtaining information that will not be considered industrial espionage: • Results of independent research and discoveries. • Reverse engineering (disassembly, study) of publicly available products. • Use by former employees of general professional skills, knowledge and experience accumulated during their work, as well as information from open industry sources. • Transfer of trade secrets to government agencies for the purposes of investigating crimes, ensuring national security or protecting public interests.
🧑⚖️If a leak is suspected, the copyright holder can contact the General Administration for Market Control and Regulation of the People's Republic of China. If the department considers the evidence sufficient, then a case will be initiated within the prescribed period. If a violation is confirmed, serious sanctions are provided: a cease and desist order, confiscation of illegally obtained proceeds, as well as fines. In case of aggravating circumstances (significant damage, threat to public interests, recidivism), the fine will range from 100 thousand to 5 million yuan.
🖇 The new regulation marks the transition of Chinese legislation to a more modern level, adapted to the realities of the digital economy and cross-border data movement, while simultaneously increasing the responsibility of businesses for the safety of their assets.
#China #Trade Representation #legislation
--- Source: [Russia–China Trade](https://t.me/russchinatrade/1158) · Telegram