China's Ministry of Commerce has published draft rules to restrict new investment and trade by foreign companies that infringe trade secrets. The rules are intended to counter tighter US restrictions on investment in China and could also apply to companies outside China.
China's Ministry of Commerce has published draft new rules that would apply when foreign companies infringe China's trade secrets. The move is positioned as a countermeasure against the United States, which is pursuing tighter investment restrictions on China.
The new rules are reportedly likely to cover not only companies operating in China but also foreign companies and individuals outside China. They would allow restrictions or bans on imports and exports of goods and technology and on services trade in response to conduct that threatens national sovereignty, security or economic development.
Measures including entry restrictions, cancellation of work permits, cancellation of residence and residency status, and fines are also envisaged. Public comments are scheduled to be invited through 24 November.
The move could signal a further escalation in tensions between China and the United States, and concerns are also being voiced that the regulations could spread to Japanese companies.