China proposes restrictions on foreign entities whose actions violate trade secrets and threaten the country's national sovereignty, security or development interests. The Ministry of Commerce has published a draft regulation that provides for the possibility of restricting or banning certain economic activities.
According to information reported by BTA, citing Reuters, the measures may include banning or restricting new investments in China. Restrictions on the import or export of goods and technologies related to the Chinese market are also envisaged.
„Actions that threaten or pose a real threat to China's national sovereignty, security or development interests“This is the criterion specified in the draft for the application of measures against foreign entities. The text refers to cases where trade secrets are alleged to have been violated in the context of international economic, trade or related activities.
Public consultation pending
The proposals are not yet final. China's Ministry of Commerce has set November 24 as the deadline for public consultation on the draft.
If adopted, the regulation will allow Chinese authorities to impose restrictions on investment and cross-border trade with foreign entities when they consider that their actions affect trade secrets and China's national interests.
Sources: uk.marketscreener.com