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China Proposes Restrictions on Foreign Entities Violating Its Trade Secrets

China's Ministry of Commerce has opened public comments on draft rules allowing restrictions on trade, new investments, and the entry of individuals against foreign entities that violate Chinese trade secrets.

October 26, 2026
China Proposes Restrictions on Foreign Entities Violating Its Trade Secrets

China's Ministry of Commerce published draft "Special Provisions on the Protection of Trade Secrets in China" and opened it for public comment until November 24, 2026, according to the "Global Times".

The draft allows for restricting or banning trade, new investments in China, personnel entry, and transport, in addition to restricting work and residency permits, if foreign entities violate Chinese trade secrets and harm national interests.

The draft is based on the Foreign Trade Law and the Anti-Unfair Competition Law, according to the ministry.

The ministry has not announced a date for the issuance of the final rules, and interested parties can submit their feedback until November 24, 2026.

What do these terms mean?

Trade Secrets: Confidential information that gives its owner a competitive edge, such as manufacturing methods, customer lists, or technical data.

China's Ministry of Commerce: The government agency responsible for regulating foreign trade and investment in China.

Foreign Trade Law: The law regulating China's exports, imports, and foreign trade relations.

Unfair Competition: Practices that harm competitors or consumers, such as misappropriating others' secrets or deception.

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