State Council Forwards the Several Measures for Encouraging Foreign Investment in the Establishment of Research and Development Centers, China Policy Updates, AmCham China, Feb. 1, 2023.
The General Office of the State Council has recently forwarded the Several Measures for Encouraging Foreign Investment in the Establishment of Research and Development Centers (the "Measures") issued by the Ministry of Commerce (MOFCOM) and the Ministry of Science and Technology (MOST).
The Measures touch upon four aspects, including supporting the development of scientific and technological innovation, improving the convenience of research and development (R&D), encouraging the introduction of overseas talents, and raising the level of intellectual property protection. Among others, the Measures call for supporting the lawful cross-border transfer of R&D data. Efforts shall be made to abide by the Cybersecurity Law, Data Security Law, and Personal Information Protection Law and other relevant laws and regulations, strengthen the security management of cross-border data transfer, safeguard national security and public interests, and protect the rights and interests in personal information; efficiently carry out security assessment on the outbound transfer of important data and personal information, and promote the safe, orderly, and free flow of R&D data. Meanwhile, steps shall be quickened to improve the system for the trade secret protection rules. Actions need be taken to further define the scope of trade secret protection, infringement acts and legal liability, perfect infringement litigation procedures, and strengthen judicial protection of the trade secrets of various market entities.