New China Trade Secrets Law Draws Concerns About Potential Abuse

Penalties for trade secret theft in China have been tightened to include prison terms up to five years or more, a change in law that could be used to target foreign businesses operating in the country, attorneys say.

Under an amendment that took effect on March 1, anyone who steals, spys, buys, or illegally provides trade secrets on behalf of foreign entities could be subject to fines and imprisonment of five years and, in serious cases, a more open-ended five years or more.

The U.S. government has long pushed for China to increase penalties to deter intellectual property infringement. Now ...