China has introduced sweeping new trade-secret regulations that significantly expand legal protections for artificial intelligence technologies. Under the new rules, which took effect on June 1, any non-public algorithm, dataset, computer program, code, or other technology-related information can now be classified as a trade secret if it has commercial value and is subject to confidentiality measures. The move reflects Beijing’s growing determination to protect strategic AI assets as competition with Western technology powers intensifies.
The regulations go far beyond traditional intellectual property protections. In addition to formulas, processes, and technical designs, the rules explicitly include AI training data, algorithms, software code, and digital assets within the scope of protected trade secrets. Companies must implement stricter access controls, maintain detailed records of who accesses sensitive information, and apply enhanced security measures for remote work and cross-border collaboration. Information that has already been publicly disclosed through media reports or open publications is excluded from protection.
Chinese regulators argue that the changes are necessary because data and algorithms have become some of the most valuable competitive assets in the digital economy. Officials say the new framework addresses emerging threats such as electronic intrusion, remote data scraping, and unauthorized extraction of proprietary AI technologies. The reforms are part of a broader modernization of China's intellectual-property regime and represent the most significant overhaul of its trade-secret protections in decades.
The new rules also carry geopolitical implications. As AI becomes increasingly important for economic growth, national security, and technological leadership, China is treating critical AI assets as strategic resources that require stronger legal protection. Analysts suggest the regulations could make it more difficult for foreign companies, researchers, and governments to gain insight into Chinese AI systems, training data, and development practices. The measures highlight China's broader strategy of strengthening domestic control over data and advanced technologies while competing for leadership in the global AI race.
