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Yes, there are risks in China - get used to it

The arrest of Rio Tinto's Stern Hu shows that when a non-Chinese national employed by a foreign company is detained in China, it makes headlines. But the PRC's criminal penalties for trade secret offences are nothing new

Issue: July/August 2009

Keywords (click to search): PRC Criminal Law state secret trade secret Rio Tinto risk foreign investment

A strong title perhaps, but appropriate in light of recent circumstances. It’s an undeniable fact that when a non-Chinese national employed by a foreign company is detained in China, it makes headlines. After Stern Hu of Rio Tinto was first held, newspapers became full of Reminders For Foreign Businesses, Warnings For Investors, and Stark Lessons About China’s Legal System.

But mainland China’s criminal penalties for trade secret offences are no secret, and are nothing new. To quote one contributor to CLP, writing in 2006:...

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