China’s State Administration for Market Regulation Releases Regulations on the Protection of Trade Secrets

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On February 28, 2026, China’s State Administration for Market Regulation (SAMR) released the Regulations on the Protection of Trade Secrets (商业秘密保护规定). The Regulations provide for an administrative enforcement mechanism for trade secret protection in addition to or in alternative to civil litigation and criminal enforcement.  While damages are not available under the Regulations, injunctions and fines of up to 5 million RMB are. The Regulations go into effect June 1, 2026. A translation follows. The original text is available here (Chinese only).

Samr Tradesecrets

Article 1. These provisions are formulated in accordance with the Anti-Unfair Competition Law of the People’s Republic of China (hereinafter referred to as the Anti-Unfair Competition Law) in order to strengthen the protection of trade secrets and maintain a fair and competitive market order.

Article 2 Operators shall adhere to the principles of voluntariness, equality, fairness, and good faith when acquiring, disclosing, using, or allowing others to use trade secrets, and shall comply with laws, regulations, rules, and business ethics, and participate in market competition fairly.

The term “operator” as used in these regulations refers to natural persons, legal persons, and unincorporated organizations that engage in the production, operation, or provision of goods (hereinafter, goods include services).

Article 3 The State Administration for Market Regulation is responsible for organizing and guiding the administrative protection of trade secrets nationwide.

Local market supervision and administration departments at the county level and above are responsible for the administrative protection of trade secrets within their respective administrative regions.

Cases involving trade secrets are generally under the jurisdiction of market supervision and administration departments at the prefecture-level city level or above. However, with the consent of the State Administration for Market Regulation, they may under the jurisdiction of county-level market supervision and administration departments with corresponding law enforcement capabilities, depending on the needs of the work.

Article 4 The market supervision and administration department shall guide operators to establish and improve trade secret protection systems, strengthen their awareness and ability to protect trade secrets, and promote the overall improvement of trade secret protection level by carrying out publicity and interpretation and organizing special training.

Businesses are encouraged to establish and improve their trade secret protection management systems, and, based on their own industry characteristics, technical requirements, and competitive advantages, actively take effective measures to strengthen internal control and compliance management of confidential elements, and prevent and stop acts that infringe upon trade secrets. Businesses are also encouraged to innovate forms of trade secret protection, and strengthen trade secret protection through certification, evidence preservation, and other methods.

Industry organizations should strengthen industry self-regulation and guide and regulate business operators in the industry to compete in accordance with the law and maintain market competition order by formulating industry-specific trade secret protection standards and compliance guidelines.

Article 5. For the purposes of these provisions, “trade secrets” refers to technical information, business information, and other commercial information that is not publicly known, has commercial value, and for which the rights holder has taken corresponding confidentiality measures.

Information related to technology, such as structure, raw materials, formula, materials, samples, patterns, processes, methods, data, algorithms, computer programs, and codes, falls under the category of technical information as defined in the first paragraph.

Information related to business operations, such as ideas, management, sales, finance, plans, samples, customer information, and data, falls under the category of business information as defined in the first paragraph. Customer information includes the customer’s name, address, contact information, transaction habits, intentions, and related details.

Article 6. For the purposes of these provisions, “not known to the public” means that, at the time of the alleged infringement of trade secrets, the relevant business information was not generally known or easily accessible to relevant personnel in the field.

The following situations constitute situations where relevant business information is publicly known:

(i) This information is common knowledge or industry practice in its field;

(ii) This information only involves the product’s size, structure, materials, and simple combination of components, which can be directly obtained by relevant personnel in the field by observing marketed products;

(iii) This information has already been publicly disclosed in publications or other media;

(iv) This information has been made public through open reports, exhibitions, and other means;

(v) Relevant personnel in the relevant field can obtain this information from other public channels.

If new information is created by organizing, improving, or processing commercial information that is already known to the public, and it meets the requirements of the first paragraph, it falls under the category of information that is not already known to the public.

Article 7 The term “having commercial value” as used in these provisions refers to commercial information that has real or potential value and can bring commercial benefits or competitive advantages to the rights holder, such as increased assets, increased operating income or profits, increased number of users, reduced costs, shortened research and development time, increased transaction opportunities, and enhanced commercial reputation or product reputation.

If the phased results or failed experimental data, technical solutions, etc. formed in the production and operation activities meet the requirements of the first paragraph, they are considered to have commercial value.

Article 8 The term “right holder” as used in these provisions refers to the owner of the trade secret and the licensee or authorized party of the trade secret who is authorized or permitted by the owner of the trade secret.

Article 9 The corresponding confidentiality measures taken by the right holder as referred to in these provisions mean reasonable confidentiality measures taken by the right holder to prevent the disclosure of trade secrets, which are appropriate to the nature of the trade secrets and their carriers, the commercial value of the trade secrets, and other factors .

The following situations constitute corresponding confidentiality measures taken by the rights holder :

(i) Sign a confidentiality agreement or stipulate confidentiality obligations in the contract ;

(ii) Establish rules and regulations, conduct training, and provide written notifications to impose confidentiality requirements on employees, former employees, suppliers, customers, visitors, etc. who have access to or can obtain trade secrets ;

(iii) Prohibit or restrict entry into classified production and operation sites such as factories, workshops, laboratories, and offices, or manage them separately ;

(iv) For scenarios such as remote work and cross-border collaboration, adopt technical confidentiality measures such as hierarchical access control, data anonymization, and operation log recording ;

(v) Trade secrets and their carriers shall be managed separately by means of marking, classifying, isolating, encrypting, sealing, or restricting the scope of personnel who can access or obtain trade secrets and their carriers;

(vi) Take measures such as prohibiting or restricting the use, access, storage, or copying of computer equipment, network equipment, storage devices, etc., that can access or obtain trade secrets;

(vii) Require departing employees to register, return, remove, and destroy the trade secrets and their carriers that they have come into contact with or obtained, and to continue to assume confidentiality obligations;

(viii) Take other reasonable confidentiality measures.

Article 10. Operators shall not obtain the trade secrets of the right holder by theft, bribery, fraud, coercion, electronic intrusion or other improper means.

The following situations constitute improper means as defined in these regulations:

(i) Without authorization or beyond the scope of authorization, unauthorized access to, possession or copying of documents, articles, materials, raw materials or other carriers under the control of the right holder that contain trade secrets or from which trade secrets can be derived;

(ii) To bribe, coerce, or deceive the rights holder’s employees, former employees, or other entities or individuals to obtain trade secrets by providing money or other property benefits, or by threatening personal safety;

(iii) Without authorization or beyond the scope of authorization, unauthorized access to the rights holder’s digital office system, server, email, cloud drive, application account, etc., or obtaining trade secrets by setting up malicious programs, vulnerability attacks, or other technical means;

(iv) Without authorization, beyond the scope of authorization, or after the expiration of the authorization period, downloading or transmitting trade secrets to email addresses, cloud storage, or other network storage spaces or electronic devices that are not controlled by the rights holder ;

(v) Other improper means of obtaining the right holder’s trade secrets.

Article 11 Operators shall not disclose, use, or allow others to use the trade secrets of the rights holders obtained by improper means.

The term “disclosure” as used in these regulations refers to revealing trade secrets to a third party other than the rights holder, or making trade secrets public so that they are generally known or easily accessible to the relevant public.

The term “use” as used in these regulations refers to the direct use of trade secrets, or the use of trade secrets after modification or improvement, or the adjustment or improvement of relevant production and business activities based on trade secrets.

Article 12. Operators shall not violate confidentiality obligations or the rights holder’s requirements for protecting trade secrets by disclosing, using, or allowing others to use the trade secrets they possess.

Confidentiality obligations or the rights holder’s requirements for protecting trade secrets generally include the following situations:

(i) Stipulate the protection of trade secrets in labor contracts, confidentiality agreements, sales contracts, and other contracts;

(ii) Where there is no contractual agreement, but based on the nature and purpose of the contract, as well as trade practices and business ethics, and in accordance with the principle of good faith, one has an obligation to protect trade secrets;

(iii) The right holder makes confidentiality requirements on the relevant parties who have knowledge of the trade secret . The relevant parties include, but are not limited to, those who have knowledge of the trade secret through contractual relationships, and those who have knowledge of the trade secret through participation in research and development, production, inspection , certification and other activities.

(iv) Where there is no contractual agreement, but the rights holder has made explicit requests to employees, former employees, partners, etc., to keep trade secrets confidential through rules and regulations or reasonable confidentiality measures;

(v) Other circumstances where there is a confidentiality obligation or the right holder makes a request to protect trade secrets.

Article 13 Operators shall not instigate, induce, or assist others to violate confidentiality obligations or the rights holder’s requirements for protecting trade secrets, in order to obtain, disclose, use, or allow others to use the rights holder’s trade secrets.

The following situations constitute acts of instigating, inducing, or assisting others to infringe upon trade secrets:

(i) Instigating or directing others to infringe upon trade secrets, whether explicitly or implicitly;

(ii) Inducing others to infringe upon trade secrets through explicit or implicit means, such as material rewards or job promises;

(iii) Knowing or having reason to know that others are infringing on trade secrets, yet still providing them with funds, technology, equipment, or other conveniences;

(iv) Other acts of instigating, inducing, or assisting others to infringe trade secrets.

Article 14. If any natural person, legal person, or unincorporated organization other than an operator commits any of the illegal acts stipulated in Articles 10 to 13 of these Regulations, it shall be deemed an infringement of trade secrets.

If a third party knowingly or should have known that an employee, former employee, partner, or other entity or individual of the trade secret holder has committed illegal acts as stipulated in Articles 10 to 13 of these Regulations, and still obtains, discloses, uses, or allows others to use the trade secret, it shall be deemed an infringement of trade secrets.

To determine whether a third party knew or should have known about the relevant commercial information , factors such as the degree of confidentiality of the information , the reasonableness of the acquisition channels and methods, the transaction price, the relationship between the third party and the trade secret holder, and industry practices should be comprehensively considered.

Article 15 The following acts generally do not constitute acts of infringing trade secrets:

(i) Independent discovery or self-development;

(ii) Obtaining relevant technical information about a product by disassembling, surveying, and analyzing the product obtained from public channels;

(iii) Former employees of the trade secret holder use general knowledge, skills, and industry experience accumulated during their work, or industry information that can be obtained through public channels, to carry out their work.

(iv) To disclose trade secrets to state organs, statutory bodies performing administrative functions, and their staff in accordance with the law, based on the need to expose illegal and criminal activities, safeguard national security, and protect the public interest ;

(v) Other acts that do not constitute infringement of trade secrets.

Article 16 encourages, supports, and protects all organizations and individuals from engaging in public oversight of acts infringing upon trade secrets. Market supervision and administration departments shall keep confidential the information of whistleblowers and organizations and individuals assisting in the investigation and handling of acts infringing upon trade secrets .

Article 17 If a rights holder believes that their trade secrets have been infringed, they may report it to the market supervision and administration department.

When reporting a violation, the rights holder should provide preliminary evidence that their business information constitutes a trade secret, as well as specific clues indicating that the trade secret has been infringed, and be responsible for the veracity of the reported content. The market supervision and administration department may, as needed, request the whistleblower to provide supplementary materials.

No organization or individual may fabricate facts of infringement of trade secrets to frame others or engage in extortion, nor may they abuse their right to report to disrupt market competition or market supervision and management.

Article 18. Preliminary evidence that the right holder’s business information constitutes a trade secret generally includes the following:

(i) The formation process and time of business information;

(ii) The commercial information is not publicly known or does not fall under the circumstances listed in Article 6, Paragraph 2 of these Regulations;

(iii) The commercial value of business information;

(iv) The confidentiality measures taken by the rights holder regarding the commercial information ;

(v) Other evidence that can prove that the right holder’s business information is a trade secret.

The following clues can generally serve as specific evidence of suspected infringement of trade secrets:

(i) Clues indicating that the person suspected of infringing trade secrets (hereinafter referred to as the infringer) has channels or opportunities to obtain trade secrets;

(ii) Clues indicating that the confidentiality measures of trade secrets have been violated by the suspected infringer through improper means;

(iii) Clues indicating that the trade secret has been actually obtained by the suspected infringer;

(iv) Clues indicating that the trade secret has been disclosed or used by the suspected infringer or that there is a risk of disclosure or use;

(v) Other clues indicating that trade secrets have been infringed by the suspected infringer.

Article 19 After receiving a tip, the market supervision and administration department shall conduct an investigation in accordance with the law and decide whether to file a case.

Upon verification, a case should be filed if the following conditions are met:

(i) There is preliminary evidence proving that there has been an act of infringing trade secrets, and administrative penalties should be imposed in accordance with the law;

(ii) It falls under the jurisdiction of this department;

(iii) Within the statutory time limit for imposing administrative penalties.

Article 20. Suspected infringers, interested parties and other relevant entities and individuals shall truthfully provide relevant information or circumstances to the market supervision and administration department.

If there is evidence proving that the information used by the alleged infringer is substantially the same as the trade secret claimed by the rights holder, and the alleged infringer has the means to obtain the trade secret, the market supervision and administration department may determine that the alleged infringer has committed an act of infringing trade secrets, unless there is evidence proving that the information used by the alleged infringer was legally obtained or used.

Article 21 Market supervision and administration departments and their staff members have a legal obligation to keep confidential any trade secrets they learn during the investigation process , and shall not illegally disclose, use, or allow others to use the trade secrets of the rights holder.

When market supervision and administration departments disclose administrative penalty decisions in accordance with the law, they shall not disclose information involving trade secrets.

Article 22 The rights holder and the suspected infringer may entrust a legally qualified appraisal institution to conduct appraisals on special matters such as whether the rights holder’s information is known to the public and whether the information used by the suspected infringer is substantially the same as the rights holder’s information, or entrust a person with specialized knowledge to provide professional opinions on the above matters, and submit the relevant appraisal results or professional opinions to the market supervision and administration department.

Article 23 When investigating suspected acts of infringing trade secrets, the market supervision and administration department may take the following measures:

(i) To enter the business premises suspected of infringing trade secrets for inspection;

(ii) Question the suspected infringer, interested parties and other relevant units and individuals under investigation, and require them to explain the relevant circumstances or provide other information related to the investigated conduct;

(iii) To inquire into and copy agreements, ledgers, receipts, documents, records, business correspondence, and other materials related to the suspected infringement of trade secrets;

(iv) Seizure and detention of property related to suspected infringement of trade secrets;

(v) Inquire about the bank accounts of operators suspected of infringing trade secrets.

When taking the measures stipulated in the first paragraph, a written report shall be submitted to the principal person in charge of the market supervision and administration department, and approval shall be obtained. When taking the measures stipulated in items (iv) and (v) of the first paragraph, a written report shall be submitted to the principal person in charge of the market supervision and administration department at the prefecture-level city level or above, and approval shall be obtained.

When market supervision and management departments and their staff conduct investigations or request assistance in investigations in accordance with the law, they should avoid or minimize the impact on the normal production and operation activities of business operators.

Article 24 Anyone who violates these provisions and infringes upon trade secrets shall be ordered by the market supervision and administration department at or above the county level to cease the illegal act, have their illegal gains confiscated, and be fined between RMB100,000 and RMB1 million in accordance with Article 26 of the Anti-Unfair Competition Law; if the circumstances are serious, a fine of between RMB1 million and RMB5 million shall be imposed.

Article 25 When an illegal act is ordered to cease in accordance with Article 26 of the Anti-Unfair Competition Law, the period for which the illegal act is ordered to cease shall generally continue until the relevant business information no longer constitutes a trade secret.

Orders to cease illegal activities generally include:

(a) Order the infringer to cease using the rights holder’s trade secrets, unless the rights holder agrees;

(ii) Order the infringer to return the carrier of the trade secret to the right holder or to destroy it;

(iii) Order the infringer to destroy the infringing products or intermediates containing trade secrets, unless the right holder agrees to other disposal methods such as acquisition or sale;

(iv) Order the infringer to remove the trade secrets of the rights holder that it has obtained ;

(v) Other acts that infringe upon the rights holder’s trade secrets.

Article 26 The following circumstances constitute serious circumstances as referred to in Article 26 of the Anti-Unfair Competition Law:

(i) The amount of direct losses caused to the rights holder is substantial;

(ii) It has a significant adverse impact on the rights holder’s production and business activities;

(iii) Endangering national interests or the public interest;

(iv) Having been subject to administrative penalties for infringing trade secrets within two years, and then committing another act of infringing trade secrets;

(v) Other serious circumstances.

Article 27 Anyone who violates these provisions and is suspected of committing a crime shall be transferred to the judicial authorities for criminal prosecution in accordance with the law.

Article 28. Commercial information referred to in these provisions that constitutes a state secret shall be protected in accordance with the provisions of the Law of the People’s Republic of China on Guarding State Secrets.

Article 29 Any act of infringing trade secrets, disrupting the order of market competition within the territory of the People’s Republic of China, or harming the legitimate rights and interests of domestic operators shall be dealt with in accordance with the Anti-Unfair Competition Law and other relevant laws.

Article 30 Where laws and administrative regulations stipulate that other departments shall supervise and inspect acts of infringing trade secrets, such provisions shall apply.

Article 31 This regulation shall come into force on June 1 , 2026. The “Several Provisions on Prohibiting Infringement of Trade Secrets” promulgated by the former State Administration for Industry and Commerce Order No. 41 on November 23 , 1995 , shall be repealed simultaneously.

Author: Aaron Wininger

Aaron Wininger is a Principal and Director of the China Intellectual Property at Schwegman Lundberg & Woessner.

Author: Aaron Wininger

Aaron Wininger is a Principal and Director of the China Intellectual Property at Schwegman Lundberg & Woessner.