China: The Anti-Unfair Competition Law of the People’s Republic of China was amended

The Standing Committee of the National People’s Congress has amended the Anti-Unfair Competition Law of the People’s Republic of China (the “Anti-Unfair Competition Law”). The newly-amended Anti-Unfair Competition Law specifies the definition of the party that accepts bribery in commercial bribery, deletes the provision that “giving or accepting kickbacks secretly without truthful records in accounting books should be deemed as giving or accepting bribes” and provides that operators are not even allowed to unduly influence a third party that may play a material role in the decision of the contemplated transaction. The Anti-Unfair Competition Law also regards employees’ act of commercial bribery as their employers’ act and imposes tougher administrative punishment for commercial bribery. In addition, in order to improve protection for trade secret, the new Anti-Unfair Competition Law elaborates on employers’ engagement in unfair competition by employing their competitors’ former employees and by obtaining trade secret from competitors’ lawyers, accountants or any other independent service providers. The newly-amended Anti-Unfair Competition Law will come into effect on January 1, 2018.

For more information on these articles or any other issues involving labour and employment matters in China, please contact Carol Zhu, Partner at Zhong Lun Law Firm ( at
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