China’s Ministry of Commerce has published proposed regulations authorizing authorities to penalize foreign companies and individuals that infringe upon Chinese trade secrets in ways that harm national security or development interests. The draft rules allow Beijing to bar offending foreign entities from conducting trade or investment activities within China and impose substantial financial fines. The legislative move directly follows recent actions by Washington, which imposed sanctions on five Chinese companies over alleged trade secret theft. Chinese officials strongly condemned the U.S. sanctions, arguing that the rapid advancement of domestic artificial intelligence and technology sectors stems from homegrown innovation rather than IP theft. International trade experts warn that the escalating tit-for-tat regulatory and economic measures heighten compliance risks for multinational corporations operating across both markets.

Full report : Beijing’s Ministry of Commerce introduces draft regulations empowering authorities to penalize foreign entities over alleged intellectual property disputes and trade violations.