China tightens controls on technology leaks with updated secrecy laws
Updated rules extend trade secret protections beyond China’s borders as authorities respond to rising concerns over technology transfer and data theft.
China has updated its trade secret protection rules to formally include data, algorithms, computer programs, code, and other technical information, reflecting the growing importance of digital assets in commercial competition.
The Provisions on the Protection of Trade Secrets, issued by the State Administration for Market Regulation, took effect on 1 June 2026 and replaced rules dating back to 1995. The framework defines trade secrets as technical, business, and other commercial information that is not publicly known, has commercial value, and is protected through corresponding confidentiality measures.
The new rules encourage companies to strengthen internal compliance and trade secret management systems. They identify reasonable confidentiality measures, including confidentiality agreements, employee training, access restrictions, data classification, encryption, isolation, and limits on copying, storing, or accessing sensitive information.
The regulations also address digital working environments. For remote work and cross-border collaboration, companies are encouraged to implement measures such as permission tiering, data masking, and operational logging to protect confidential information.
The rules prohibit acquiring trade secrets through theft, bribery, fraud, coercion, electronic intrusion, or other improper means. They also cover unauthorised access to digital office systems, servers, email accounts, cloud storage, and application accounts, as well as the use of malware or the exploitation of vulnerabilities to obtain trade secrets.
The framework applies to trade secret infringements committed outside China where they disrupt domestic market competition or harm the lawful rights and interests of Chinese business operators.
Alongside the new rules, SAMR has launched the fourth Enterprise Trade Secret Protection Capacity Enhancement Service Month in June 2026. The campaign will focus on compliance guidance, stronger enforcement, regional cooperation, and support for key industries, including biomedicine, integrated circuits, and AI.
Why does it matter?
The updated rules show how trade secret protection is being adapted to digital and data-driven industries. By explicitly covering data, algorithms, software and code, China is treating digital knowledge assets as core components of commercial competitiveness. The framework also raises compliance expectations for companies operating in China, especially those working across remote teams, cloud environments, cross-border collaboration, AI, semiconductors, and other high-value technology sectors.
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