China Trade Secrets Protection — Legal Framework & Enforcement

Trade secrets in China are protected under the Anti-Unfair Competition Law, requiring reasonable confidentiality measures. The law provides civil, administrative, and criminal remedies for misappropriation.

Legal Requirements

To qualify as a trade secret, information must: (1) be unknown to the public, (2) have commercial value, and (3) be subject to reasonable confidentiality measures by the rights holder. The burden of proof shifted in 2019 amendments — the alleged infringer must prove they obtained the information lawfully when the rights holder provides初步 evidence of misappropriation.

Confidentiality Measures

Required measures include: written confidentiality agreements with employees and business partners, access controls (physical and digital), marking documents as confidential, and exit procedures for departing employees. Non-disclosure agreements (NDAs) are standard.

Remedies

Civil remedies: injunctions and damages. Criminal liability applies for trade secret theft causing loss exceeding RMB 300,000 (up to 7 years imprisonment).