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New trade secret rules: China says its AI data is none of your business

New trade secret rules: China says its AI data is none of your business

Εuronews, By Anna Desmarais, Published on 

Under new Chinese regulations, any algorithm, dataset or program not publicly disclosed now counts as a trade secret. Algorithms and computer programmes are now considered trade secrets by the Chinese government. The new regulations, called “Trade Secret Protection,” went into effect on Monday. The rules say that any “information related to technology, such as structure, raw materials, formula, materials, samples, patterns, processes, methods, data, algorithms, computer programmes and codes,” is considered a trade secret. Technical or business information that “is not publicly known, has commercial value,” and is confidential also falls under the regulation. Anything that has already been described in the media or in open reports is not considered a trade secret. The regulation sets out strict measures for remote work and cross-border collaboration, including access controls, data anonymisation to mask personally identifiable information, and detailed logs of who has accessed, copied or modified data.
AI algorithms and data are now considered trade secrets in China and subject to tight restrictions
 
 

The new regulations are the first update to China’s trade secrets rules since 1998 and now explicitly mention AI and data as falling under the law. The Chinese state is conducting what they call a “Enterprise Trade Secret Protection Capacity Enhancement Service,” month in June, as they have every year since 2023. During the month, they will hold business trainings to “cultivate awareness” and conduct risk assessments with the new regulations.

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