It is reported that there is an obligation for passive infrastructure sharing in China to deliver telecom services to end users, and it is practiced in the mobile sector and in the fixed sector based on commercial agreements.

According to Art. 25 of the Chinese government’s 2015 National Security Law, all information systems in China must be "secure and controllable". 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.

China lacks a comprehensive framework in place that provides effective protection of trade secrets, but there are limited measures addressing some issues related to them namely: Anti-Unfair Competition Law (revised in 2019); the Civil Code (effective in 2021), the Civil Procedure Law (revised in 2017); the Labour Law (revised in 2018); and the Criminal Law (revised in 2015). According to the Anti-Unfair Competition Law: trade secrets refer to any technical information, operational information or commercial information, which is not known to the public and has commercial value, and for which its infringer adopted measures to ensure its confidentiality.
In addition, it is reported that stakeholders have welcomed the latest revision of the Criminal Law and the continuing implementation of previously issued judicial interpretations as positive developments. In particular, stakeholders noted stronger procedural protections for right holders and broader definitions of misappropriation.

China has ratified the World Intellectual Property Organization (WIPO) Copyright Treaty.

China has ratified the World Intellectual Property Organization (WIPO) Performances and Phonograms Treaty.

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 use of a published work for the purposes of the user's own private study, research or self-entertainment;use of a published work, within proper scope, by a State organ for the purpose of fulfilling its official duties; among others.

It is reported that China has high levels of online piracy and lacks effective enforcement. Moreover, China continues to be the largest origin economy for counterfeit and pirated goods, accounting (together with Hong Kong) for more than 85% of global seizures of counterfeit goods from 2017 to 2019. In addition, it is reported that the rate of unlicensed software installation in the country was 66% in 2017 (above the 57% rate of the Asian Pacific countries), for an estimated commercial value of USD 6,842 million.

China is a party to the Patent Cooperation Treaty (PCT).

Art. 18 of the amended Chinese Patent Law establishes that non-resident foreigners or organizations 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.

It is reported that in China it is often difficult to provide evidence to support a specific claim for damage compensation in a patent enforcement action. The amount of damages was capped in a range going from a minimum of RMB10,000 (USD 1,450) to RMB 1,000,000 (about USD 145,000), which are not considered to be adequate. The first draft of the amendment to the Patent Law proposed an increase of the range to RMB 100,000-RMB 5,000,000 (USD 15,000 - USD 750,000) However, the second reading of the draft amendments under scrutiny, has changed this, setting only an upper ceiling of RMB 5,000,000 (USD 750,000) and eliminating the minimum amount.
The amendment also introduces certain changes regarding evidence of illicit profit of the defendant, The new draft amendment provides that, in order to determine the amount for compensation, where the right holder has endeavored to present evidence and the related account books or materials are mainly in control by the accused infringer, the People’s Court may order the defendant to provide those books and materials relating to the infringing conduct. If the defendant does not provide or provides false account books or materials, the People’s Court may refer to the right holder’s claims and evidence to rule on the amount of compensation. This will aid foreign right holders in patent enforcement actions.

All foreign companies starting a business in e-commerce activities (including through an e-commerce platform in China) must have a Chinese business license. In order to acquire a business license in China, foreigners must establish a Wholly Foreign Owned Entity (WFOE).

It is reported that China’s indigenous innovation practices are a web of policies, regulations and strategies that create incentives for Chinese enterprises to create advanced technologies. Only enterprises with Chinese legal person status can apply for product accreditation. Moreover, to be accredited, a product must have been manufactured by an entity with full ownership of intellectual property rights in China, either by creating the rights or by acquiring them. It is reported that these policies, which are contained in the The Medium- and Long-Term Plan for the Development of Science and Technology (2006–2020), aim to encourage domestic innovation and build and support “national champions" by providing financial incentives that favor domestic innovation.

The National Security Law foresees the rollout of a “secure and controllable” internet infrastructure. The official Xinhua news agency said the new law, signed by President Xi Jinping, would establish “mechanisms to censor items that have or may have an impact on national security, including foreign investment, particular materials and key technologies”. The law appears vague about how the new requirements will be implemented, and it has raised concerns related to legal uncertainty for businesses.
Under the National Security Law, the State can establish national security review and oversight management systems and mechanisms, conduct national security review of foreign commercial investment, special items and technologies, internet information technology produces and services, projects involving national security matters, as well as other major matters and activities, that impact or might impact national security.

The Ministry of Commerce Order No. 4 of 2020 on the List of Unreliable Entities sets up a list of unreliable enterprises. As per the Order, foreign entities classified as unreliable entities could face sanctions in the form of restrictions or prohibition on the foreign entity from engaging in China-related import or export activities, restrictions on prohibition on the foreign entity from investing in China etc. Foreign entities that could be included in the unreliable entity list include those involved in international commerce or related activities that engage in endangering national sovereignty, security or development interests in China, suspending normal transactions against any organization or individual in China, entities which violate market principles and cause damage to the rights and interests of the Chinese entity. Under this Order, a special unit in MOFCOM will be responsible for identifying foreign entities (which include foreign enterprises, organizations and individuals) that will be subject to restrictions.
Currently, no firms have been designated as an unreliable entity.

In additional to a general merger control regime, there is a notification and clearance regime for transactions involving sensitive/strategic sectors, which are reviewable by inter-ministerial bodies with the power to block proposed transactions on national security grounds. To date, there is no record of transactions on the telecom or ICT marked being blocked by Ministry of Commerce of the People's Republic of China (MOFCOM). However, the agency has imposed a number on behavioral remedies as a condition to clearing the acquisition of Nokia's smartphone business by Microsoft in 2014. According to MOFCOM, the transaction, already cleared without conditions in the US and EU, could have restricted the competition in the downstream smartphone market in China and endanger the ability of Chinese smartphone manufacturers to compete.
Furthermore, despite the MOFCOM review period can last up to a maximum of 180 days, it is reported that there have been cases where the review lasted significantly longer forcing the parties to withdraw their applications. It is unclear if the Circular is still in force, considering the promulgation of the Measures of Security Review of Foreign Investments in 2020. The National Development and Reform Commission has said that the Measures in 2020 summarize the work practices of foreign investment security review of the past 10 years.