On October 26, 2026, China’s Ministry of Commerce (“MOFCOM”) published the draft Special Provisions on the Protection of Chinese Trade Secrets, introducing a new sanctions tool targeting foreign infringement of Chinese trade secrets. Once finalized, the rules would authorize MOFCOM to impose sanctions on foreign companies, organizations and individuals where such infringement harms, or poses an actual threat to, China’s sovereignty, security or development interests. MOFCOM may initiate investigations before imposing sanctions, and third parties may also submit relevant leads or reports.
Available sanctions would include restrictions on trade, exports and investment, entry and work restrictions, and monetary penalties, broadly consistent with measures available under China’s existing sanctions and countermeasures regimes. The measures may be revoked, suspended or mitigated depending on remedial actions taken by the sanctioned party and MOFCOM’s verification.
The timing is notable. The Draft, open for public comments until November 24, appears to be a direct response to the U.S. government’s recent sanctions under the Protecting American Intellectual Property Act against five Chinese companies for alleged theft of U.S. trade secrets.
