Database

Browse Database

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

Since December 2021, entry into force in January 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Sub-pillar Maximum foreign equity share
Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition) (外商投资准入特别管理措施 (负面清单) (2021 年版)
Under the Negative list 2021, foreign investment in radio stations, television stations, radio and television transmission networks, radio and television satellites, satellite uplink stations, satellite receiving stations, microwave stations, internet audio-visual program services, cyberculture operations (except for music) and internet information dissemination services (except for contents opened up in China's WTO commitments) is prohibited. It is also forbidden to engage in the business of video broadcasting by order of radio and TV and the installation services of ground receiving facilities for satellite TV broadcasting.
Coverage Internet information dissemination services

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

CHINA

Since July 2018, until July 2025

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In July 2018, the Ministry of Commerce of the People's Republic of China (MOFCOM) announced anti-dumping duties on optical fibre preform imported from Japan and the United States. Optical fibre preforms are considered intermediary ICT goods. They are used in the production of optical fibre, which is then utilised in various ICT goods and infrastructure such as internet networks, telecommunications systems, and data centres. Imports from Japan are subject to rates ranging from 14.4% to 31.2%, while those from the United States are subject to rates between 17.4% and 41.7%.
Coverage Product: Optical fibre preform (HS 70022010)

Country: Japan, United States

CHINA

Since January 2005, extended in January 2011, 2017 and 2022, until January 2027

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In January 2005, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from Japan and South Korea. This measure was reviewed and extended in January 2011 and, subsequently, in January 2017 and January 2022. The rate of duty imposed on imports originating in Japan is 46%, while imports originating in South Korea range from 7.9% to 46%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)

Countries: Japan, South Korea

CHINA

Since April 2011, extended in April 2017 and 2022, until April 2027

Pillar Tariffs and trade defence measures applied on Information and Communication Technology (ICT) goods  |  Sub-pillar Antidumping, countervailing duties, and safeguard measures on ICT goods
Antidumping measure
In April 2011, the Ministry of Commerce of the People's Republic of China announced anti-dumping duties on non-displacement single-mode optical fibres (used, for example, for long-distance telephony and multichannel television broadcasting systems) (HS code: 9001.1000) imported from the EU and the U.S. This measure was reviewed and extended in April 2017 and, subsequently in April 2022. The duty rate on imports originating from the European Union ranges from 12.9% to 29.1%, depending on the company. The duty rate on imports originating from the United States ranges from 33.3% to 78.2%, depending on the company.
Coverage Product: Dispersion unshifted single-mode optical fibres (HS 9001.1000)

Countries: European Union, United States

CHINA

Since January 2003, last amended in January 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Government Procurement Law of the People's Republic of China (Order of the President No. 68) (中华人民共和国政府采购法 (主席令第68号))
Art. 10 of the Government Procurement Law states that procuring entities must procure domestic goods, construction, and other services, except in one of the following situations: (i) where the goods, construction, or other services needed are not available within the territory of China or cannot be acquired on reasonable commercial terms, even if they are available in China; (ii) where the items to be procured are for use abroad; and (iii) where otherwise provided for by other laws and administrative regulations.
Moreover, the Chinese public procurement regulations actively promote a Buy Chinese policy. In principle, only Chinese companies are allowed to bid in public tenders, with foreign companies permitted only under exceptions. Government agencies and related entities are required to purchase equipment and technology from Chinese state-owned or privately-owned manufacturing companies. It is reported that public tenders often lack sufficient publicity. Furthermore, central and local entities tend to implement these provisions very broadly, exceeding the discriminations imposed by the law.
Coverage Horizontal

CHINA

Since July 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Report by the National Development and Reform Commission of China and the Ministry of Finance
A report by the National Development and Reform Commission of China and the Ministry of Finance bans the purchase of certain foreign IT products for selected government procurement lists. For example, one government procurement list banned ten Apple Inc. products, including the iPad, iPad Mini, MacBook Air and MacBook Pro.
A separate procurement list includes some Apple computers that departments can continue to buy on a smaller scale, i.e. purchases totalling less than 1.2 million yuan (USD 195,000). Products from Dell Inc., Hewlett-Packard Co. and Chinese maker Lenovo Group Ltd. were included on both lists. This ban applies to all central Communist Party departments, government ministries and local governments.
Coverage Apple Inc. products including the iPad, iPad Mini, MacBook Air and MacBook Pro as well as some Apple computers

CHINA

Since June 2014

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Exclusion from public procurement
Result of the public tender for central government procurement of electronic information products of 2014 (Vol. 21, GC-HJ140283) (2014年中央政府采购电子信息产品公开招标结果 (Vol. 21, GC-HJ140283))
In June 2014, the Centre of Public Procurement of the Central Government issued the result of the public tender for central government procurement of electronic information products of 2014 (Vol. 21, GC-HJ140283). Under the "Antivirus Software" category, all foreign security providers such as Kaspersky and Symantec were excluded from the list. Only five Chinese providers, i.e. 360, Jiangmin, Rising, Kingsoft, and KILL, are listed for national security consideration.
Coverage Foreign security providers of antivirus software

CHINA

Since June 2007
Since December 2019
Since December 2019
Since December 2019

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Administrative Measures for the Multi-level Protection of Information Security

Information Security Technology - Baseline for Cybersecurity Classification Protection (GB/T 22239-2019)

Information Security Technology - Technical Requirements of Security Design for Cybersecurity Classification Protection (GB/T 25070-2019)

Information Security Technology - Evaluation Requirements for Cybersecurity Classification Protection (GB/T 28448-2019).
The Administrative Measures for the Multi-level Protection of Information Security (MLPS) require all IT systems in China to be classified into different levels of security, from one to five (with the most sensitive systems designated as level 5). In 2019, the MLPS 2.0 (composed by GB/T 22239-2019, GB/T 25070-2019, and GB/T 28448-2019) has expanded the definition of 'information systems' to broader systems, including network infrastructure, cloud computing systems, mobile application platforms, connected devices and industrial control systems.
The MLPS 2.0 requires networks of level 3 and above to adopt network products and services appropriate to their security protection levels. Companies classified as level 2 and above require the procurement and use of encryption products and services to be preapproved by the Chinese government. Under the MLPS 2.0, companies must self-assess their security management and compliance, and such assessment results must be evaluated and endorsed by the MLPS regulatory body.
The MLPS 2.0 requires companies in China to set up their cloud infrastructure, including servers, virtualised networks, software, and information systems. Such cloud infrastructures are subject to testing and evaluation by the Chinese government. Overseas operation and maintenance of Chinese cloud computing platforms must also follow Chinese laws and regulations. The national standards also state that customers' data and users' personal information processed by cloud service providers should be stored inside China, which is an additional requirement. It is currently uncertain how these national standards would be enforced, and there have not yet been reports of enforcement.
Coverage Information Systems including network infrastructure, cloud computing systems, mobile application platforms, connected devices and industrial control systems
Sources

CHINA

Since July 1999

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
OSCCA Regulation on Commercial Encryption OSCCA (商用密码管理条例)
Imported and exported encryption products must be certified by the Office of State Commercial Cryptography Administration (OSCCA). The use of encryption products without OSCCA certification is prohibited, regardless of the public, commercial or individual nature of use. However, it is reported that, in practice, only Chinese or Chinese-owned companies are eligible for OSCCA certification to sell, produce and carry out R&D for encryption technology in China, as well as to gain product licensing. Foreign or foreign-owned companies, even if based in China, are excluded. In practice, this means that using foreign encryption products in public procurement is effectively prohibited in China. International firms are therefore excluded from government contracts for ‘information security products’ such as smart cards, firewalls and secure databases.
Coverage Encryption products and encryption software

CHINA

Since November 2009
Since April 2010

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Directive No. 618 “Notification Regarding the Launch of National Indigenous Innovation Product Accreditation Work for 2009” (关于开展2009年国家自主创新产品认定工作的通知)

Notice Launching the National Indigenous Innovation Product Accreditation Work for 2010 (关于开展2010年国家自主创新产品认定工作的通知)
Directive No. 618 establishes a framework for promoting Chinese products in government procurement by creating an accreditation system with specific criteria. To qualify, products must be manufactured by enterprises with full Chinese intellectual property ownership or by Chinese entities with legally obtained rights. The product's trademark must be owned by a Chinese-registered company and certified by relevant national or provincial authorities. The 2010 Notice revised some requirements, allowing for licensed foreign IP use while maintaining a focus on Chinese ownership or usage rights for trademarks. This regulatory approach presents significant challenges for non-Chinese companies, as it requires freedom from foreign restrictions on IP use and prioritises products with strong ties to Chinese intellectual property and enterprises. The overall policy aims to foster indigenous innovation and give preference to Chinese-developed or Chinese-owned products in government procurement, potentially limiting opportunities for foreign entities in this market.
Coverage Computers and application equipment; communications products; modern office equipment; software, energy efficient products, new energy equipment

CHINA

Since January 2003, last amended in January 2014
Since May 2022
Since July 2022

Pillar Public procurement of ICT goods and online services  |  Sub-pillar Other limitations on foreign participation in public procurement
Government Procurement Law of the People's Republic of China (Order of the President No. 68) (中华人民共和国政府采购法(主席令第68号))

Guofa (2022) No. 12 on a Package of Policy Measures (国发〔2022〕12号 揽子政策措施的通知)

Caiku (2022) No. 19 on Further Strengthening Government Procurement Support for Small and Medium-Sized Enterprises (财库〔2022〕19号 关于进一步加大政府采购支持中小企业力度的通知)
According to Art. 9 of the Government Procurement Law, government procurement must facilitate the achievement of China's policies for economic and social development, including but not limited to environmental protection, assistance to underdeveloped or ethnic minority areas, and the promotion of SMEs.
The Ministry of Finance (MOF) has issued a Notification on Further Supporting Small and Medium-sized Enterprises (SMEs) in Public Procurement (MOF Announcement No. 19) in response to the State Council's Notification on a Package of Policy Measures to Stabilize the Economy (Guo Fa 2022 No.12). This announcement outlines three primary directives for relevant procuring entities: (i) strict implementation of public procurement policies supporting SMEs; (ii) enhancement of price preferences for SMEs; (iii) augmentation of the proportion of reserves allocated for SMEs.
Furthermore, MOF Announcement No. 19 introduces significant modifications to the preferential treatment of SMEs in public procurement. The price deduction preferential rate for small and micro enterprises in goods and service procurement projects has been increased from the previously stipulated 6%-10% (as per Document No. 46 of Caiku 2020) to 10%-20%. Moreover, for large and medium-sized enterprises that form consortia with or subcontract to small and micro enterprises, the preferential rate has been elevated from 2%-3% to 4%-6%.
Coverage Horizontal

Report issue     Report new measure