China will enact new trade secret protection rules on Monday. The rules cover data, algorithms, and computer code. The State Administration for Market Regulation released the Provisions on its website. The SAMR said the provisions fill a gap in administrative protection details.
Meanwhile, the regulation lists specific technical measures for remote work and cross-border collaboration. It also clarifies digital circumstances that constitute improper means of infringement.
The SAMR observed that the digital economy has deepened significantly. Data, algorithms, computer programs, and codes now serve as key commercial secrets. However, electronic intrusion and remote data scraping are also occurring more frequently.
Consequently, the new trade secret protection rules respond to these emerging challenges. A member of the MIIT expert committee, Pan Helin, spoke on Sunday. He acknowledged that incorporating algorithms into trade secret protection remains difficult. Many algorithms function as black boxes. Therefore, he predicted that the underlying basic code will most likely receive protection. This code falls under intellectual property rights.
Furthermore, Pan stated that the overall move will encourage Chinese AI firms to innovate. They can develop original algorithms without copying others. They will also avoid relying on knowledge distillation to build their models.
According to the rules, trade secrets represent vital innovation outcomes and central competitiveness. They play a critical role in securing industrial and supply chains. They also help foster new quality productive forces. Moreover, trade secrets have become a prominent issue in international trade practices.
The provisions introduce new terms on instigation, inducement, and assistance in infringement. This strengthens third-party liability and establishes full-chain accountability for market violations. Additionally, the regulation adds extraterritorial applicability. Chinese regulators may pursue legal liability for overseas acts that disrupt the domestic market order.
