China has drafted special rules to protect the country’s trade secrets and is seeking public feedback on the proposed strictures, the Ministry of Commerce said on Monday.
In the draft document, the ministry said the rules apply “where a foreign entity engages in acts infringing upon Chinese trade secrets in the course of international economic, trade and related activities” and those acts endanger or pose a real threat to “China’s national sovereignty, security and development interests”.
Under the draft rules, the ministry could impose one or more measures on foreign entities found to have engaged in prohibited conduct, including restricting or banning their trade in goods, technology and services involving China and curbing new investment in China.
Other potential measures include limiting the entry of entities’ personnel and transport vehicles into China, revoking or restricting work permits and residence rights for entities’ personnel within the country, and imposing fines proportionate to the severity of the offence.
The new rules would also authorise the commerce ministry to investigate whether foreign entities’ conduct represents a threat to China’s sovereignty, security or development interests.
According to the ministry’s statement, the draft rules are now open for public comment, with feedback due by November 24.