規制  ·  2026-10-29

China MOFCOM proposes sanctions-style 'trade secret' countermeasure targeting foreign AI/tech entities (26 Oct 2026)

規制High 影響度China
On 26 October 2026, China's Ministry of Commerce (MOFCOM) released the 'Special Provisions on Protecting China's Trade Secrets (Draft for Comment)' for public comment (closing 24 November 2026). Despite the title, it is a foreign-entity sanctions/retaliation mechanism: where MOFCOM determines that a foreign entity's infringement of a Chinese trade secret endangers, or poses an actual threat to, China's national sovereignty, security or development interests, MOFCOM may restrict or prohibit its imports/exports of goods and technology, prohibit exports to it, restrict or prohibit new investment in China, restrict personnel entry and work/residence permits, and impose fines. It arrives directly after the US sanctioned five Chinese AI firms under the Protecting American Intellectual Property Act (19 Oct 2026) over an alleged Google AI trade-secret theft, and is the latest in MOFCOM's 2025-26 sanctions toolkit (State Council Decree 834; supply-chain security investigations).
This gives Beijing a targeted economic-security lever over foreign AI and technology companies operating in or trading with China, and is a direct countermeasure to US actions targeting Chinese AI firms. For any AI developer, chipmaker or data company with China exposure, trade-secret disputes can now escalate from civil IP litigation to trade/investment/entry restrictions and fines — a material new AI-geopolitical risk. It also signals that the US-China AI competition is being fought through trade-security instruments.
AI and tech companies with IP or operations in China should assess trade-secret handling and cross-border evidence/partner arrangements, and prepare for potential MOFCOM investigations and countermeasure exposure; submit comments by 24 November 2026.
China IP Law Update — MOFCOM Draft Provisions on foreign entities over trade-secret infringementBaker McKenzie Sanctions News — China proposes new sanctions toolGlobal Times — China seeks input on new rules to protect trade secrets
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