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China includes data and algorithms in the protection of business secrets

China has extended the protection of commercial secrets to include data and algorithms in order to strengthen protection against the skills drain. The revised Regulation on the Protection of Business Secrets of the General Directorate of State Market Supervision of China was formally implemented on Monday (1 June). This was the first time that Chinese law explicitly included digital assets such as data, algorithms and so forth in the protection of commercial secrets. The new regulations also impose stricter security requirements for teleworking and cross-border business cooperation. Enterprises must take protective measures, including limiting access to documents, concealing sensitive information, and recording user operations according to employee grade. The regulation also includes violations of commercial secrets committed abroad, but no specific enforcement mechanism is specified. In conjunction with the implementation of the new regulations, the General Directorate of the State Market Supervision of China launched a month-long special enforcement operation on Monday, focusing on key areas such as biomedicine, semiconductors and artificial intelligence, and severely combating the practice of “behavioural poaching” and the carrying of commercial secrets while staff members leap out of chutes.

https://www.zaobao.com/news/china/story20260602-9141136?ref=home-top-news