How to protect trade secrets in China, and what can I do after a leak occurs?

Three conditions must be met simultaneously for information to qualify as a trade secret: it is not known to the public, it has commercial value, and the rights holder has taken corresponding measures to keep it confidential.

Of the three, confidentiality measures are the most common reason cases fail — courts expect measures matched to the information's actual value, not just a generic confidentiality policy. That means clearly defined scope of confidential information, tiered access controls, exit procedures and non-compete arrangements for departing employees, marking and control over how materials leave the company, and traceable activity logs.

Enforcement runs through civil litigation — an order to stop the infringement and damages, with punitive damages where the conditions are met — administrative complaints to the market regulation authority, and criminal complaints for the offense of infringing trade secrets. On evidence, the Anti-Unfair Competition Law shifts the burden to the defendant once the rights holder has produced preliminary evidence, so that it falls to the defendant to prove that there was no infringement. Evidence in trade secret cases is easily lost. The first steps on discovering a leak are to secure the evidence and to apply for a preliminary injunction, not to open negotiations.