Trade Secrets and Criminal Punishments

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Category: SINOTALKS® In Brief

Images: Mohamed Hassan, Handcuffed to a Dollar;
Linnaea Mallette, Spring Flowers Lightbulb Art (Publicdomainpictures.net)

A well-known Chinese business leader recently stated openly that her company does not hire any Chinese graduates or professionals returning from overseas to avoid potential infiltration by spies working for foreign entities. This remark has been widely criticized. While the business leader’s recruitment approach is quite extreme, her underlying concerns about potential loss of trade secrets are noteworthy. A new set of rules issued by Chinese authorities helps address these concerns by elucidating how individuals stealing trade secrets for foreign entities can be subject to severe criminal punishments.Read more

China’s AI Patents and Compensation for Patent Infringement

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Category: SINOTALKS® In Brief

Image: GraphaizeSMM Marketing, AI Patent Trends Infographics (Publicdomainpictures.net)

China stood out in the World Intellectual Property Organization’s latest report on generative artificial intelligence (“GenAI”) as, compared with other countries, China invented the largest number of GenAI technologies from 2014 to 2023. This momentum of innovation should be welcomed by Chinese leaders but should also prompt them to ponder a key question: how can they help to maintain and grow this momentum and ensure that China’s “new quality productive forces” will continue to drive the country’s long-term development? A case recently decided by the Supreme People’s Court shows that China is developing robust legal solutions to these challenges, among other tools.Read more

Data as Property in the AI Era: How China Formulates Related Rules Incrementally

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Category: SINOTALKS® In Brief

Image: Gerd Altmann, Big Data (Publicdomainpictures.net)

Chinese President XI Jinping’s mid-February meeting with founders of China’s innovative companies showcases the country’s “new quality productive forces”—a term coined by the president in 2023 to emphasize the role of innovation in driving the country’s long-term development. Despite the apparent collaboration prevailing in the meeting room, behind the scenes there is fierce competition among these and other innovative companies on many fronts, including the use of data, a valuable property in the era of artificial intelligence. China is acutely aware of the need to regulate the use of data, but the challenge is how to do so properly. Incremental steps taken by the judiciary and the executive in China provide a glimpse of the country’s exploratory approach to such regulation.Read more

Key Talks in 1992, Court Cases in 2024, and “New Quality Productive Forces”

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Category: SINOTALKS® In Brief

Image: Mikhail Denishchenko, Production Technology (Publicdomainpictures.net)

Coined by President XI Jinping in 2023, the term “new quality productive forces” is of great significance because related reforms, with reference to various types of investment, have been identified by the Chinese leadership. Key talks given in 1992 by the late reformist leader DENG Xiaoping and select court cases recently released by China help illuminate the meaning of the term. Actions taken by the courts in these cases to support the development of “new quality productive forces” allow investors to better assess related opportunities.Read more