China Implements New Digital Asset Trade Secret Protections

The State Administration for Market Regulation of China implemented the Regulations on Trade Secret Protection on June 1, 2026. This legal framework marks the first instance of Chinese law providing explicit protection for digital assets, including algorithms, computer programs, code, and data, as proprietary secrets.

To enforce these protections, the framework requires strict security protocols for cross-border collaborations and remote work, such as tracking user activity and restricting file access based on employee rank. The regulator simultaneously launched a month-long enforcement campaign to combat trade secret theft and malicious poaching within the semiconductor, biomedicine, and AI sectors.

Complementing these rules, the State Council of the People's Republic of China released regulations prohibiting the transfer of restricted technology, data, or goods overseas without prior approval. The council also banned technical training that could facilitate such exports. These actions follow a broader pattern of preventing technology and talent loss, which included a previous order for Meta Platforms Inc to unwind its acquisition of the AI startup Manus.