China Classifies Undisclosed AI Data as Protected Trade Secrets

Under new Chinese regulations, any algorithm, dataset or program that has not been publicly disclosed now counts as a trade secret. The rules extend legal protection across a broad range of artificial intelligence (AI) assets and signal Beijing's intent to shield domestic technology from outside scrutiny.

The definition is expansive. By covering undisclosed data and code by default, the measure gives Chinese firms and authorities grounds to withhold information from foreign partners, regulators and competitors, and it raises the legal stakes for anyone seeking access.

The move fits a wider pattern of governments treating data and artificial-intelligence capability as strategic assets. It runs in parallel with efforts elsewhere to secure semiconductor supply chains and with disputes over critical minerals, reflecting a global shift toward technological self-reliance and tighter control of information.

For foreign companies operating in or sourcing from China, the rules add complications. Due diligence, partnerships and compliance all become more complex when a counterpart can designate its core technology as a protected secret, and these complications contribute to the broader trend toward separate technology spheres.