China imposes sanctions on foreign companies for violating trade secrets, countering the US and potentially spreading to Japan

[Beijing Current Affairs] On the 26th, China's Ministry of Commerce announced new draft regulations that would restrict or prohibit foreign companies that violate the trade secrets of Chinese companies from making new investments in China or trading with China. This appears to be a response to the US Trump administration's proposal to tighten regulations on investment in China this month, which imposed sanctions on Chinese companies for stealing trade secrets. There is a possibility that the conflict between the United States and China will further intensify, and there is also a risk that restrictions will be imposed on Japanese companies.

The new regulations are ``Special Provisions on the Protection of China's Trade Secrets'' based on the Foreign Trade Law. Not only companies operating in China, but also foreign companies and individuals outside China can be targeted. In response to acts that threaten China's national sovereignty, security, and economic development, it is possible to restrict or prohibit imports and exports of goods and technology and trade in services. Entry restrictions for those involved, cancellation of work permits, stay/residence status, and fines are also possible. Opinions will be solicited until November 24th.