BEIJING - China's Ministry of Commerce has unveiled draft provisions designed to safeguard trade secrets and is inviting public feedback, in a move that would give Beijing a new tool against foreign entities accused of taking Chinese commercial secrets across borders. The draft, released on Monday, proposes measures against foreign entities whose actions endanger or pose a real threat to China's national sovereignty, security or development interests, Reuters reported.
Source: Reuters, via Devdiscourse, Oct 26
The measures include restricting or banning the entities from making new investment in China and from importing or exporting goods and technologies related to China, according to the draft. The ministry is seeking public feedback on the draft regulations until November 24, it said in a statement. No company or country is named in the reporting of the draft, and the rules are not yet in force.
Source: Reuters, via Devdiscourse, Oct 26
Hong Kong reporting on the same draft adds the scope: the measures would apply when a foreign entity is alleged to have infringed Chinese trade secrets in the course of international economic, trade or related activities, and where such actions endanger or pose a real risk to the nation's sovereignty, security and development interests. The draft sets out a framework to address suspected infringements originating outside the mainland's jurisdiction yet affecting Chinese companies and institutions.
Source: DimSum Daily, Oct 26, on the MOFCOM draft provisions
Why it matters beyond China
The draft signals a tougher stance on cross-border misappropriation, complementing existing domestic rules on unfair competition and intellectual property protection, the Hong Kong report said. Officials said the proposals are intended to deter illicit acquisition and misuse of sensitive commercial information while supporting innovation and lawful cooperation in global markets. For foreign firms — including Indian and Western companies with China supply chains — the practical test will be how broadly the sovereignty, security and development-interests threshold is applied once, and if, the draft becomes law.
Source: DimSum Daily, Oct 26, on the MOFCOM draft provisions
The Reuters report was also carried on TradingView's Reuters feed on Monday, confirming the same core terms: draft regulations from the commerce ministry, measures aimed at foreign entities endangering China's sovereignty, security or development interests, and restrictions or bans on new investment and on importing or exporting China-related goods and technologies.