China drafts trade-secret rules allowing trade and investment curbs on foreign entities deemed to threaten national interests.
On 26 October the Ministry of Commerce released the draft Special Provisions on Protecting Chinese Trade Secrets for public comment until 24 November. Drafted under the Foreign Trade Law and related rules, the provisions apply where a foreign entity infringes Chinese trade secrets in international economic, trade and related activities and thereby endangers, or poses a real threat to, China’s national sovereignty, security or development interests. The ministry may open investigations and impose measures including restricting or banning the entity’s China-related trade in goods, technology and services, restricting or banning new investment in China, restricting entry of its personnel and means of transport, restricting or revoking personnel’s work permits and residence status in China, and fines. Reuters and the South China Morning Post reported the draft.
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