On 27 June 2025, the Standing Committee of the National People’s Congress (“<span class="news-text_medium">NPCSC</span>”) approved extensive revisions to the Anti-Unfair Competition Law (“<span class="news-text_medium">AUCL</span>”). Coming into force on 15 October 2025, the amendments update the regime for safeguarding fair competition, reflecting evolving business realities—particularly in digital markets. While they promise a more equitable environment, they also demand heightened compliance from both domestic and foreign operators.
The amended AUCL expands the scope of trademark protection. Businesses are prohibited from using another company’s product name, trade name (including abbreviations), registered mark, or well-known unregistered mark as search keywords in a manner that could mislead consumers about the origin of goods or suggest affiliation.
Digital identifiers—already recognised since 2017—are now broadened to cover social-media handles and app names, alongside domains and websites. Operators facilitating such deceptive practices, not only those directly engaging in them, are now held liable.
Penalties include:
The law introduces new forms of trade secret misappropriation, including cyber intrusions. Liability extends to those inducing or assisting violations and now applies to individuals and non-business entities, not only operators.
The burden of proof has shifted: once a rights holder shows preliminary evidence of misappropriation, the accused must demonstrate that no infringement occurred. This significantly strengthens protection in fast-moving sectors vulnerable to leakage.
The amendments expressly prohibit the misuse of data, algorithms, or platform rules to distort user choices or undermine rivals. Businesses are barred from fraudulent acquisition of competitors’ data, fake transactions, fabricated reviews, or instructing others to conduct such behaviour.
The definition of “acts of confusion” has been expanded, explicitly covering the unauthorised use of trademarks in both digital and offline contexts.
Recognising vulnerabilities of smaller operators in platform economies, the AUCL now prohibits:
Violations can lead to fines up to RMB 1 million (USD 139,559), or up to RMB 5 million (USD 697,798) in serious cases.
The revised AUCL applies to conduct outside China that harms Chinese competitors or distorts its domestic market. This creates potential liability for foreign parents or affiliates if their overseas practices adversely affect competition in China.
