On February 24, 2026, the State Administration for Market Regulation (“SAMR”) promulgated the Regulation on the Protection of Trade Secrets (“Regulation”), which took effect on June 1, 2026, simultaneously repealing the Several Provisions on Prohibiting Infringement of Trade Secrets issued by the former State Administration for Industry and Commerce in 1995 (“1995 Provisions”). The Regulation expands from 12 articles to 31, transforming trade secret protection from a set of general prohibitions into a comprehensive regime built upon the Anti-Unfair Competition Law (“AUCL”). It modernizes trade secret law for the digital economy, expressly bringing data, algorithms, and code within scope, and addressing emerging scenarios such as electronic intrusion and remote-work security.
For foreign companies operating in or with China, the Regulation signals a shift toward proactive compliance, as enterprises are expected to establish internal trade secret management systems rather than relying solely on post-infringement remedies.
We recommend that foreign companies promptly assess their trade secret portfolios and protection measures against the Regulation’s standards, including reviewing their classification and protection frameworks, updating employment agreements and non-disclosure agreements, and ensuring that confidentiality provisions are sufficiently specific and aligned with applicable data security, cybersecurity, and export control regimes in China.