China’s New Trade Secret Laws and AI Sovereignty

China has just made a clear statement with its new trade secret protection rules (recently entered into force): any algorithm, dataset, AI model, or code that is not publicly released is now considered a trade secret. In other words, “it’s none of your business.”This is a logical and expected move from Beijing:

• Full digital sovereignty. China treats AI as a matter of national security and internal control. They don’t want the US, EU, or anyone else demanding transparency, audits, or access to their models — especially those used for surveillance, propaganda, or economic planning.
• Response to external pressure. In the context of American chip export controls, sanctions, and technological competition, China is fortifying its own “backyard.” They are protecting what they’ve built (or adapted/copied) and reducing the risk of reverse espionage or diplomatic pressure.
• Strategic advantage. In the long run, this helps them develop AI “with Chinese characteristics” — perfectly aligned with the Party’s priorities, without worrying about Western ethics (individual rights, bias, transparency). On the flip side, it risks isolation: less international collaboration, fewer open-source innovations, and a more closed ecosystem.

In short: it’s a declaration of technological independence. China is telling the world “we play by our own rules.” This accelerates the decoupling in AI — the world is increasingly splitting into separate technological blocs.

By Robert Williams &Grok

Source: https://x.com/euronews/status/2061919041996898588?s=20