CHINA Trends and Developments Contributed by: Mitchell Liu Minxuan and Sarah Lu Shijiao, AllBright Law Offices
Trade Secret Criminal Case Deadlock Solution and Trade Secret Compliance Protection Trends In the current era of deep integration between tech - nological innovation and economic development, new quality productive forces (“ 新质生产力 ”, a con - cept proposed by President Xi Jinping, referring to advanced economic and technological capabilities behind high-quality growth, industrial upgrading, and innovation-led development) have become the core driver of China’s world-class advancement. Trade secrets, as crucial carriers of technological innova - tion, directly represent these new quality productive forces. Trade secrets encompass enterprises’ core technical know-how, business strategies, and market edge. The survival and development of companies, as well as China’s leadership in global technological competition, all depend on trade secrets. The recent surge in high‑value civil awards and crimi - nal prosecutions has sharpened corporate focus on this area, yet practical confusion endures. Drawing on casework experience gained on multiple trade secret cases that were steered into criminal proceed - ings in 2025 covering cutting‑edge fields including power electronics, chip design and smart manufac - turing, and which yielded a deployable framework for trade secret systems and an integrated approach to combining non-compete obligations with trade secret protection, this article presents field‑tested solutions intended to serve as a reference for practical rights enforcement and regulatory compliance. Precise technical review is the starting point for criminal cases, and only comprehensive investigation pinpoints infringement facts Meticulous technical review can strengthen a com - plaint and help negotiate the daunting hurdle of ini - tiating criminal proceedings for trade secret infringe - ment. Securing a case file, however, is merely the first step. The broader objective is to sharpen the inter - face between the pleaded claims and investigative follow‑through, impelling enforcement agencies to pursue the thorough review of an alleged transgres - sion. The technical review that starts an investigation should not, however, be mistaken for a conclusive determination of scope of infraction. Both the fram - ing of the complaint and the subsequent investigative phase must go beyond an initial review. The authori -
ties should be guided to use that review as a lens through which to conduct a far‑reaching, multilayered inquiry. Navigating evidentiary challenges in trade secret cases Trade secret litigation involves evidence prone to dis - appearing, alteration and technical intricacy. Expert determinations are often contested in exclusion hear - ings, with challenges centering upon on the prove - nance of samples or the regularity of collection pro - tocols. Proposed countermeasures include: (i) early involvement in the rights holder’s evidence prepara - tion, offering guidance on electronic data retrieval – its method, scope and preservation – to secure lawful, complete extraction and thus underpin the integrity of materials submitted for expert scrutiny; and (ii) proac - tive liaison with investigative agencies to remedy, via digital forensics, any procedural infirmities in evidence presented unilaterally by the complainant. Synergising criminal and civil remedies to mitigate weakness of criminal remedies In one casework example, faced with misappropria - tion of core technology, the team activated criminal channels to set compulsory investigation in motion. Harnessing the forensic capabilities of law enforce - ment, the team rapidly preserved essential electronic evidence and took key individuals into custody, there - by laying foundational proof of infringement. Once investigative momentum was secured, parallel civil proceedings were initiated, with preservation orders and conduct injunctions in place to equip the rights holder for optimal post‑criminal compensation. Overcoming the barriers in damage assessment The assessment of damages is crucial for conviction and sentencing in secret trade criminal cases. The assessment methodology becomes a focal point in dispute in judicial practices. The challenge of dam - ages appraisal through differentiated legal arguments is addressed, along with the exploration of novel cal - culation methods to protect, as far as possible, the legitimate rights and interests of the rights holder. In legal arguments regarding loss calculation, in-depth theoretical analyses and case studies are carried out in response to the practice, among certain judicial
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