Database

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CHINA

Since September 2000, last amended in February 2016

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Commercial presence requirement for digital services providers
Telecommunications Regulations of the People’s Republic of China (中华人民共和国电信条例)
All foreign companies starting a business in e-commerce activities, including through an e-commerce platform in China, must have a Chinese business license. To acquire a business license in China, foreigners must establish a Wholly Foreign Owned Entity (WFOE).
Coverage E-commerce sector

CHINA

Since February 2002

Pillar Telecom infrastructure & competition  |  Sub-pillar Signature of the World Trade Organization (WTO) Telecom Reference Paper
WTO Telecom Reference Paper
China has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector

CHINA

Since June 2021

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the application process for patents
Patent Law of the People's Republic of China (Amended in 2020) (中华人民共和国专利法 (2020年修订))
Art. 18 of the amended Chinese Patent Law establishes that non-resident foreigners or organisations without business establishments in China shall entrust the patent agency established by law to handle patent applications or other patent-related matters in China. Moreover, according to Art. 19, any entity or individual intending to file a patent application in a foreign country for an invention or utility model completed in China shall submit a request for confidential examination to the patent administration department under the State Council in advance. The patent administration department of the State Council shall handle international patent applications in accordance with the relevant international treaties to which the People's Republic of China is a party, this Law and the relevant provisions of the State Council.
Coverage Horizontal

CHINA

N/A

Pillar Telecom infrastructure & competition  |  Sub-pillar Presence of an independent telecom authority
Lack of independent telecom authority
The Ministry of Industry and Information Technology (MIIT) acts as the telecommunications authority in the country, and therefore, there is no independence from the government in its decision-making process.
Coverage Telecommunications sector

CHINA

Reported in 2022, last reported in 2024

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Practical or legal restrictions related to the enforcement of patents
Reported obstacles to patent enforcement
It has been reported that the obstacles to patent enforcement include prolonged delays within the judicial system, a perceived reluctance of the courts to grant preliminary injunctions, burdensome invalidity proceedings, stringent evidentiary requirements, and uncertainty regarding whether a patentee's right to exclude encompasses manufacturing for export.
Coverage Horizontal

CHINA

Since January 2011, entry into force in May 2011
Since February 2020

Pillar Cross-border data policies  |  Sub-pillar Ban to transfer and local processing requirement
Yinfa No. 17/2011, Notice of the People's Bank of China on Protecting Personal Financial Information by Banking Financial Institutions (人民银行关于银行业金融机构做好个人金融信息保护工作的通知)

Personal Financial Information Protection Technical Specification (个人金融信息保护技术规范)
The "Notice of the People's Bank of China on Protecting Personal Financial Information by Banking Financial Institutions" states that the processing of personal information collected by commercial banks must be stored, handled and analysed within the territory of China, and such personal information is not allowed to be transferred overseas (paragraph 6).
The Personal Financial Information Protection Technical Specification (PFI Specification) regulates “any personal information collected, processed and stored by Financial Institutions during the provision of financial products and services" (PFI). The PFI specification requires that PFI collected or generated in mainland China is stored, processed and analysed within the territory. Further, under the PFI Specification, where there is a business need for cross-border transfer of personal financial information (PFI) and the financial institution obtains explicit consent to the transfer from the personal financial information subjects (i.e. the persons under the PFI Specification providing the data), conducts a security assessment and then supervises the offshore recipient to ensure responsible processing, storage and deletion of PFI (Section 7.1.3).
Coverage Financial sector

CHINA

Since January 1994

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Participation in the Patent Cooperation Treaty (PCT)
Patent Cooperation Treaty (PCT)
China is a party to the Patent Cooperation Treaty (PCT).
Coverage Horizontal

CHINA

Since May 2014

Pillar Cross-border data policies  |  Sub-pillar Ban to transfer and local processing requirement
Administrative Measures for Population Health Information (For Trial Implementation) (人口健康信息的管理措施(试行))
Population health information needs to be stored and processed within China. In addition, storage is not allowed overseas (Art. 10).
Coverage Health sector

CHINA

Since September 1990, entry into force in June 1991, last amended in November 2020

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Copyright law with clear exceptions
Copyright Law of the People's Republic of China (中华人民共和国著作权法)
China has a copyright regime under the Copyright Law of the People's Republic of China. However, the exceptions do not follow the fair use or fair dealing model, therefore limiting the lawful use of copyrighted work by others. Art. 22 lists the exceptions, which include: the use of a published work for the purposes of the user's own private study, research or self-entertainment; and the use of a published work, within proper scope, by a State organ for the purpose of fulfilling its official duties; among others.
Coverage Horizontal

CHINA

Reported in 2021, last reported in 2023

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Enforcement of copyright online
Lack of adequate enforcement of copyright online
It is reported that China experiences high levels of online piracy and lacks effective enforcement. Online piracy is widespread, impacting various industries, including music, motion pictures, books and journals, software, and video games. This is despite increased enforcement activities.
Coverage Horizontal

CHINA

Since March 2007, entry into force in June 2007

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Copyright Treaty
WIPO Copyright Treaty
China has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.
Coverage Horizontal

CHINA

Since March 2007, entry into force in June 2007

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Adoption of the World Intellectual Property Organization (WIPO) Performances and Phonogram Treaty
WIPO Performances and Phonograms Treaty
China has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.
Coverage Horizontal

CHINA

Since July 2015

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Mandatory disclosure of business trade secrets such as algorithms or source code
National Security Law of the People's Republic of China (中华人民国国家安全法)
According to Art. 25 of the Chinese government’s 2015 National Security Law, all information systems in China must be "secure and controllable". As a result of this policy, it is reported that every company operating in China – whether domestic or foreign – is required to provide the Chinese government with access to its source code, encryption keys, and backdoor access to their computer networks in China.
Coverage Horizontal

CHINA

Since December 1998

Pillar Intellectual Property Rights (IPRs)  |  Sub-pillar Effective protection covering trade secrets
Several Provisions on Prohibition of Infringement of Trade Secrets (关于禁止侵犯商业秘密行为的若干规定)
The Anti-Unfair Competition Law of the People's Republic of China, which was implemented by the Several Provisions on Prohibition of Infringement of Trade Secrets Act, provides a framework for the effective protection of trade secrets. According to Art. 2 of both laws, the term "trade secrets" refers to technical information and business information that is not known to the public, can bring economic benefits to the right holder, is practical, and has been kept confidential by the right holder. Art. 3 of the Several Provisions on Prohibition of Infringement of Trade Secrets Act outlines prohibitions against trade secret infringements, including obtaining trade secrets through improper means such as theft or coercion and disclosing or using such secrets. It also covers violations by business partners and employees who breach confidentiality agreements, as well as third parties who knowingly use or disclose obtained trade secrets. Moreover, Art. 7 states that violations of Art. 3 will be addressed by the administration for industry and commerce according to Art. 25 of the "Anti-Unfair Competition Law," which may involve ordering the cessation of illegal activities and imposing fines ranging from 10,000 to 200,000 yuan (approx. USD 1,500 to USD 30,000).
It is reported that, despite existing regulations, serious deficiencies in the protection and enforcement of trade secrets in China have raised concerns among stakeholders. Numerous cases of trade secret theft benefiting Chinese companies, both domestically and internationally, have been documented. Particularly troubling are reports that agents affiliated with the Chinese government and military have infiltrated the computer systems of foreign companies, stealing terabytes of data, including proprietary information and intellectual property, to provide commercial advantages to Chinese enterprises.
Coverage Horizontal

CHINA

N/A

Pillar Telecom infrastructure & competition  |  Sub-pillar Passive infrastructure sharing obligation
Requirement of passive infrastructure sharing
It is reported that there is an obligation for passive infrastructure sharing in China to deliver telecom services to end users. Moreover, passive infrastructure sharing is practised in both the mobile and fixed sectors based on commercial agreements.
Coverage Telecommunications sector

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