China to boost protection of trade secrets against foreign entities

The commerce ministry's proposed rules aim to broaden the protection of trade secrets, specifically targeting foreign entities. The critical detail is that these rules would apply to "any infringement that harms or 'poses a real threat to China’s national sovereignty, security and developmental interests'." This language suggests a focus beyond purely commercial disputes, encompassing information deemed vital for national strategic advantage.

The framing of these measures as a "boost to its legal defenses in a technology race with the United States" provides important context. It indicates that the policy is not merely about standard intellectual property enforcement but is also a strategic move in a broader geopolitical and technological competition. This implies that the definition of "trade secrets" under these new rules could be interpreted broadly to include technologies or data considered critical for China's long-term economic and technological self-reliance.

While the proposed scope is broad, the specific types of trade secrets or actions that would fall under "national sovereignty, security and developmental interests" remain undefined in the current report. The proposals are also still in a public comment phase until November 24, meaning the final language and its practical application could evolve. This uncertainty means companies operating in China will need to monitor the eventual regulations for clarity on how these broad criteria will be interpreted and enforced.