An interview with Giulia Romanelli: China’s proposed “special” trade secret rules raise the stakes for foreign companies

On 26 October, the Ministry of Commerce of the People’s Republic of China (MOFCOM) published the draft “Special Provisions on the Protection of Chinese Trade Secrets” for public consultation. The draft would allow the Ministry to impose fines and restrictions on trade, investment and operations in China on foreign entities whose infringement of Chinese trade secrets threatens China’s national interests.

The proposal does not rewrite the substantive rules on trade secret protection but builds on existing powers that already link IP, foreign trade and national security. Its novelty lies in a dedicated mechanism that could turn a trade secret dispute into a much wider commercial problem, affecting a company’s broader business with China. Key uncertainties remain, however: when MOFCOM could intervene, how infringement would be established, and what opportunities a foreign entity would have to defend itself. MOFCOM would also have broad discretion in combining measures, with limited guidance on their scope and duration, while the calculation and limits of fines are left unspecified.

The practical impact will depend on the final text and on how MOFCOM applies it, but the potential consequences already justify attention. For IP managers, the risks could extend beyond IP protection to the company’s wider business with China, calling for a coordinated response from legal and business functions.

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IAM interviewed Giulia Romanelli, alongside a group of lawyers from different jurisdictions, on this topic. The contribution was also republished by World Trademark Review, two leading publications in the IP sector.

Read the full article on IAM and World Trademark Review.