Anti -Unfair Competition Law of the  
People's Republic of China  
 
(Adopted at the 3rd Meeting of the Standing Committee of the Eighth 
National People's Congress on September 2, 1993 ; revis ed at the 30th 
Meeting of the Standing Committee of the Twelfth National People's 
Congress on November 4, 2017 ; amended in accordance with the 
Decision on Revising the Construction Law of the People's Republic of 
China  and Other Seven Laws at the 10th  Meeting of the Standing 
Committee of the T hirteen th National People' s Congress on  April 23, 
2019 ) 
 
Contents  
 
Chapter I  General Provisions  
Chapter II  Acts of Unfair Competition  
Chapter III  Investigation into Suspected Acts of Unfair Competition  
Chapter IV  Legal Liability  
Chapter V  Supplemental Provision  
 
 
Chapter I  General Provisions  
  
Article 1 This Law is enacted for the purposes of promoting the sound 
development of the socialist market economy, encouraging and protecting 
fair competition, preventing acts of unfair competition, and safeguarding 
the lawful rights and interests of business entities and consumers.  
 
Article 2 Business entities shall adhere to the principles of free will, 
equality, fairness and good faith, and comply with applicab le laws and 
business ethics in their production and distribution activities.  
 
For the purposes of this Law, “an act of unfair competition”  means that in 
its production or distribution activit y, a business entity disrupts the order 
of market competition and causes damage to the lawful rights and 
interests of other business  entities  or consumers, in violation of this Law.  
For the purposes of this Law, a b usiness entity  refers to a natural person , a 
legal person or an  unincorporated organization that is engaged in 
producing or distributing  goods  or providing service  (such goods  and 
services hereinafter are collectively referred to as  goods . 
 
Article 3 The people's governments at all levels shall take measures to 
prevent acts of unfair competition and create favorable environments and conditions for fair competition.  
 
The State Council shall establish a coordinat ive mechanism as regards  
anti-unfair competition  work, study  and decide on major anti -unfair 
competition policies , and coordinate the settlement of  major issues in 
maintaining the order of market competition.  
 
Article 4 T he relevant department s of the people's government s at or 
above the county level that perform  the duty of  industrial and commercial  
administration shall be responsible for investigating and punishing acts of 
unfair competition, unless a law or administrative regulation requires any 
other department to do so.  
 
Article 5 The state encourage  and support organizations and individuals  
to engage in public  supervision over unfair competition acts , and protect 
such organizations and individuals engaged in such supervision . 
Governmental organs  and their staff members  shall not support or cover 
up acts of unfair competition.  
 
Industr y organizations shall strengthen self -regulation  within the industr y, 
provide guidelines and rules for their members to compe te lawfully, and 
maintain the order of market competition.   
Chapter II  
Acts of Unfair Competition  
         
Article 6 A business entit y shall not commit any of the followi ng acts 
which create  confusion, misleading consumers  into believing that its own 
goods  is the goods  of another business entity or has a certain connection 
with another  entity : 
     
(1) Using, without authorization,  any mark identical or similar to the 
name, packaging or decoration , etc.  of another business entity ’s goods  
which has certain r eputation ; 
    
(2) Using, without authorization, an other business entit y’s name 
(including short name and brand name), or a social organization ’s name 
(including short name), or a person’s name (including pseudonym, stage 
name and name translation), in each case with certain reputation ; 
        
(3) Using, without authorization,  the principal part of a domain name, the 
name of a website, or a web page, etc., in ea ch case with certain 
reputation, of another entity; or  
     (4) Any other co nfusing act sufficient to mislead the consumers  into 
believing that its goods  is the goods  of another business entity or has 
certain connection with another business entity.  
    
Article 7 A business entit y shall not seek a transaction opportunity or a 
comp etitive edge by bribing any of the following units  or individuals with  
money or things of value  or any other  kinds of  bribery : 
    
(1) Any employee of the other party to a transaction;  
     
(2) Any unit or individual authorized by the other party to a transaction to 
handle the relevant affairs;  or 
 
(3) Any other unit  or individual that may use power or influence to affect 
a transaction.  
 
A business entity may, in the course of doing business, expressly p ay a 
discount to the other party to the transaction, or pay a commission to a 
broker, provided that, in either case, the business entity shall faithfully 
make an entry in its account book in respect of such a discount or 
commission. A business entity which  receives such a discount or 
commission shall also faithfully enter it into its account book.   
A bribery committed by an employee of a business entity shall be deemed 
to be committed by the business entity, unless the business entity has 
evidence that the activity of the employee is irrelevant to seeking a 
transaction opportunity or competitive edge for the business entity.  
 
Article 8 A business entit y shall not  deceive or mislead consumers  by 
engaging in  any false or misleading commercial publicity in resp ect of 
the performance, functions, quality, sales conditions, user comments, and 
honors received of its goods . 
 
A business entit y shall not help another business entity engage in  any 
false or misleading commercial publicity by organizing a false transactio n 
or by any other means.  
    
Article 9 A business entity shall not commit any of the following acts 
which infringe trade secrets of another:  
 
(1) Obtaining a trade secret from its lawful holder by theft, bribery, fraud, 
coercion, hacking into the electronic information system or any other 
illicit means;  
 (2) Disclosing, using, or permitting another to use the trade secret 
obtained from its lawful holder by means as specified in the preceding 
paragraph;  
 
(3) Disclosing, using, or permitting another to use any trade secret under 
its control in violation of a legal obligation, or the requirements of its 
lawful holder, for protecting the confidentiality of trade secrets;  
 
(4) Aiding and abetting, or luring one to obtain, disclose, use or permit 
another to use any trade secret of its lawful holder by violating one’s legal 
obligation, or the requirements of lawful holder, for protecting the 
confidentiality of trade secrets.  
 
Any natural person, legal person or unincorporated organization shall be 
deemed t o infringe the trade secret if they commit any unlawful acts set 
forth in the preceding paragraphs.  
 
Where a third party knows or should have known that an employee or a 
former employee of the lawful holder of a trade secret or any other unit or 
individual has committed an illegal act as specified in the first paragraph 
of this Article, but still obtains, discloses, uses, or permits another to use 
the trade secret in question, the third party shall be deemed to infringe the trade secret.  
 
For the purposes of this Law, “a trade secret” means any commercial 
information unknown to the public, including but not limited to 
technology or business information, with commercial value and for which 
its lawful holder has taken proper confidentiality measures.  
 
Article 10 The following circumstances shall be prohibited  in the case of 
a business entity launching  a premium sale activity : 
   
(1) The information about the types of prizes , conditions for claiming 
prizes , the specific prizes or the sum of prizes, etc . in a premium sales 
activity  is so ambiguous as to affect  claiming prize;  
     
(2) Making fake prize or intentionally letting inside persons to win the 
prize;  or 
     
(3) The sum of the top prize exceeding RMB 50,000  yuan  in the case of a  
lottery -based premium  sales.  
     
Article 11 A business entit y shall not fabricate or disseminate false or 
misleading information in order to damage the goodwill  of competitors or their goods . 
 
Article 12 A business entity engaged in production or distribution  via the 
internet  shall abide by the provisions of this Law.  
 
A business entit y shall  not, by using technical means to interfer e with 
users’  choice or otherwise, commit any of the following acts that affect or 
sabotag e the normal operation of any online product or ser vice lawfully 
provided by another business entity:  
    
(1) Without consent of another entity, i nserting a link or forcing a URL 
redirection in an internet product or service lawfully provided by the said 
other business entity;  
    
(2) Misleading, tricking  or forcing users to alter, shut down, or uninstall 
an internet product or service lawfully provided by another business 
entity;  
    
(3) Causing, in bad faith, incompatibility with an internet product or 
service lawfully provided by another business entity ; or 
   
(4) Any other  act that interferes  with or sabotag es the normal operation of internet products or services lawfully provided by another business entity.  
 
Chapter III  
Investigation into Suspected Acts of Unfair Competition  
     
Article 13 The regulatory department  may take the following measures in 
investigating a suspected act  of unfair competition:  
     
(1) Entering and investigating a  business premise suspected of being 
involved in an act of unfair competition;  
     
(2) Enquiring the business entity under  investigation, any interested 
person,  and other relevant units  and individuals, and requiring them to 
provide relevant information or other materials relating to the the 
suspected act of unfair competition;  
    
(3) C hecking and duplicating agreement s, account book s, document s, 
files, record s, business letter s, and other materials relating to the 
suspected act of unfair competition;  
    
(4) Seizing or detaining money or things  relating to the suspected act of 
unfair co mpetition;  and  
(5) Checking bank account s of a business entity suspected of engaging in 
an act of unfair competition.  
 
Prior to taking measures prescribed in  the preceding  paragraph , a written 
report thereon shall be submit ted to the principal responsible  person  of 
the regulatory department  for approval . Prior to taking measures 
prescribed in  Subparagraphs (4) and (5) of the preceding paragraph , a 
written report thereon shall be submitted for approval  to the principal 
responsible person of the regulatory department  of the people’ s 
government at or above the level of city divided into  districts.  
 
The regulatory department  shall comply with the Administrative 
Compulsion Law of the People's Republic of China and other applicable 
laws and administrative regula tions in investigating a suspected act  of 
unfair competition, and publish  in a timely manner to the public the 
results of the investigation  and handling . 
     
Article 14 When the regulatory department  investigat es a suspected act  of 
unfair competition, the business entity  under investigation , any interested 
person, and any other relevant unit and individual shall faithfully provide 
relevant materials and information.      
Article 15 Regulatory departments  and their employees shall keep 
confidential the trade secrets they came to know during investigation . 
 
Article 16 Any entity or individual shall have the right to report  a 
suspected act of unfair competition to the regulatory department which 
shall, upon receipt of such  a report, d eal with the matter according to law  
in a timely manner.  
 
The regulatory departments  shall publish their telephone number s, 
mailing box es, or e -mail addresses for receiving reports, and  shall  keep 
informants confidential. In the case of a true -name reporti ng with relevant 
facts and evidence provided, the relevant regulatory department shall 
notify the informant of the result of its investigation  and handling . 
 
Chapter IV  
Legal Liability  
 
Article 17 A business entity that causes damage to another person in 
violation of this Law shall bear civil liability according to law.  
 
Any business entity whose lawful rights and interests are prejudiced by an act of unfair competition may institute an action before a people’s 
court of competent jurisdiction.  
 
The amount of damages to a business entity caused by an act of unfair 
competition of another shall be determined based on its actual loss caused 
by the infringement by another or, if it is difficult to calculate the actual 
loss, based on the benefits obtain ed by the infringer from its infringement. 
If the business entity has maliciously infringed upon the trade secret with 
flagrant circumstances, the amount of damages shall be no less than one 
time but no more than five times of the amount determined by the 
aforementioned method. The amount of damages to a business entity 
shall include its reasonable costs for stopping the infringement.  
 
Where any business entity violates Article 6 or 9 of this Law, and it is 
difficult to determine the actual loss of the righ t holder involved due to 
the infringement and the benefits obtained by the infringer from its 
infringement, a people’s court of competent jurisdiction may, at its 
discretion, award damages not exceeding RMB five million yuan to the 
right holder based on th e circumstances of the infringement.  
 
Article 18 Where any business entity commits an act which creates 
confusion in violation of Article 6 of this Law, the regulatory authorities shall order it to cease its such illegal activity and confiscate its illegal  
products. Additionally the infringer may also be punished by a fine not 
exceeding five times of the value of its illegal operations if the value of 
its illegal operations is RMB 50,000 yuan or more, or by a fine not 
exceeding RMB 250,000 yuan if the value  of its illegal operations is zero 
or less than RMB 50,000 yuan. If its violation is serious, its business 
license shall be revoked.  
 
Any business entity where its registered business name does not comply 
with Article 6 of this Law shall, in a timely manne r, undergo name 
modification registration; and before its name is modified properly, the 
original enterprise registration authorities shall use its uniform social 
credit code instead of its name.  
   
Article 19 Where any business entity bribes another perso n in violation of 
Article 7 of this Law, the regulatory authorities shall confiscate its illegal 
income and impose a fine of not less than RMB 100,000 yuan nor more 
than RMB three million yuan on it. If its violation is serious, its business 
license shall be revoked.  
 
Article 20 Where any business entity conducts any false or misleading 
commercial publicity about its products or helps another business entity conduct any false or misleading commercial publicity by fabricating 
transactions or by any other mea ns in violation of Article 8 of this Law,, 
the regulatory authorities shall order it to cease its such illegal activity, 
and it shall be punished by a fine of not less than RMB 200,000 yuan but 
not more than RMB one million yuan, or if its violation is ser ious by a 
fine of not less than RMB one million yuan but not more than RMB two 
million yuan and its business license may be revoked.  
 
Violation by any business entity of Article 8 of this Law that constitutes 
publishing false advertisement shall be punishe d pursuant to the 
Advertising Law of the People's Republic of China.  
   
Article 21 Where any business entity, natural person, legal person or 
unincorporated organization infringes upon a trade secret of another in 
violation of Article 9 of this Law, the regulatory authorities shall order it 
to cease such illegal activity, confiscate any illegal gains, and impose a 
fine of no less than RMB 100,000 yuan but no more than RMB one 
million yuan, or a fine of no less than RMB 500,000 yuan but no more 
than RMB fi ve million yuan if the circumstance is serious.  
 
Article 22 Where any business entity conducts a premium sales activity in 
violation of Article 10 of this Law, the regulatory authorities shall order it to cease its such illegal activity and impose on it a fine of not less than 
RMB 50,000 yuan nut not more than RMB 500,000 yuan.  
   
Article 23 Where any business entity causes any damage to the goodwill 
or the reputation of product of its competitor in violation of Article 11 of 
this Law, the regulatory author ities shall order it to cease its such illegal 
activity, to eliminate the adverse effects, and shall impose a fine not less 
than RMB 100,000 yuan but not more than RMB 500,000 yuan, or a fine 
of not less than RMB 500,000 yuan but not more than RMB three mi llion 
yuan, if its violation is serious.  
   
Article 24 Where any business entity interferes with or sabotages the 
normal operation of internet products or services lawfully provided by 
another business entity in violation of Article 12 of this Law, the 
regulatory authorities shall order it to cease its such illegal activity, and 
impose a fine not less than RMB 100,000 yuan but not more than RMB 
500,000 yuan, or a fine of not less than RMB 500,000 yuan but not more 
than RMB three million yuan if its violatio n is serious.  
   
Article 25 Where a business engages in any unfair competition in 
violation of this Law, and it voluntarily eliminates or mitigates the 
harmful consequences of its illegal act, among other statutory circumstances, a lighter or mitigated administrative punishment may be 
imposed according to the laws; if the illegal act is minor and corrected in 
a timely manner without any harmful consequences, no administrative 
punishment shall be imposed.  
  
Article 26 Where any business entity i s subject to an administrative 
punishment for conducting acts of unfair competition in violation of this 
Law, the regulatory authorities shall enter such fact into the credit 
recording system against the business entity, and make relevant public 
announceme nts, according to applicable laws and administrative 
regulations.  
   
Article 27 Any business entity shall bear civil, administrative, and 
criminal liability for its such violation of this Law. Where its property is 
not sufficient to cover all such liabilit ies, the civil liability shall be first 
covered.  
   
Article 28 Where any business entity prevents the regulatory authorities 
from performing their functions pursuant to this Law, or refuses to 
cooperate or otherwise impedes an investigation by the regulato ry 
authorities, the regulatory authorities shall order the business entity to 
take corrective actions, and may impose on individual a fine of not more than RMB 5,000  yuan  , or of not more than RMB50,000  yuan  for units, 
and shall be given a public security administration  punishment in  by 
the public security authorities according to law.  
   
Article 29 Where a party refuses to accept the decision of the regulatory 
authorities, may apply for administrative reconsideration or 
administrative lawsuit .  
 
Article 30 Any official or employee of the regulatory authorities who 
abuses his/her power, commits dereliction of duties, makes falsehood for 
personal gains, or divulges any trade secret known in investigation shall 
be punished pursuant to applicable laws.  
   
Article 31 Any violation of the provisions of  this Law ，which 
constitutes a criminal offence,  shall be investigated for criminal 
responsibility according to law.  
 
Article 3 2 In a civil proceeding on the infringement of trade secret, the 
lawful holder of the trade secret shall submit prima facie evidence to 
prove that it has taken confidentiality measures for the claimed trade 
secret, and to reasonably indicate that the trade secret has been infringed 
upon. The alleged infringer shall then prove that the trade  secret claimed by the lawful holder does not constitute a “trade secret” under this Law.  
 
The alleged infringer shall prove the absence of the infringement, if the 
lawful holder of a trade secret submits prima facie evidence reasonably 
indicating that th e trade secret has been infringed upon, and submits any 
of the following evidence:  
 
(1) Evidence indicating that the alleged infringer has the method or 
opportunity to obtain the trade secret, and the information it used is 
substantially the same with suc h trade secret;  
 
(2) Evidence indicating that the trade secret has been disclosed or used, or  
is at risk of disclosure or use, by the alleged infringer; or  
 
(3) Other evidence indicating that the trade secret has been infringed 
upon by the alleged infringer.  
 
Chapter V  
Supplemental Provision  
 
Article 3 3 This Law shall come into force on January 1, 2018.