This article will explore the reform of China’s law against unfair competition and outline the potential benefits and changes for European companies operating with the Chinese market.
Index:
- Reform to Chinese law
- Key changes
- Conseguenze e potenzialità per il mercato europeo
- Conclusions
Reform to Chinese law
Significant changes to China’s unfair competition law came into force on October 15, 2025. The reform is aimed, according to official statements, at strengthening the protection of intellectual property and better regulating competitive practices in the digital era. This is a major legislative intervention that could have significant effects for European businesses either operating in or interested in the Chinese market.
Key changes
One of the most significant changes is the introduction of the principle of extraterritorial application: unfair competition practices occurring outside China but likely to harm the internal market or the rights of Chinese operators and consumers will now be sanctioned.
In terms of trademark protection, the new law extends coverage to digital identifiers such as social media account names, app names, or app icons, which have become central to brand recognition. For European trademark owners, this means increased protection against online “cloning” practices and parasitic competition, which are particularly widespread in e-commerce.
The law also qualifies the unauthorized use of registered or well-known trademarks as part of business names as an act of confusion, thus harmonizing the discipline with trademark law. Furthermore, the use of keywords in search engines is now regulated: even the “implicit use” of another party’s trademark to attract traffic may be considered unfair competition. A step that directly affects European businesses, who are often victims of deceptive online advertising campaigns.
Finally, the law provides clarifications on liability for complicity in another party’s illegal act and offers an exemption from penalties for those who act in good faith.
Conseguenze e potenzialità per il mercato europeo
Firstly, these changes strengthen China’s control over its own market, but also raise questions for foreign operators, who will need to carefully assess their commercial and advertising strategies from a transnational perspective.
On the other hand, as regards the potential advantages for European operators, they are many:
- A more structured legal environment
- Clearer protection mechanisms
- Increased focus on digital channels
Of course, the concrete effectiveness of law enforcement and the willingness of Chinese authorities to ensure fair enforcement, including for the benefit of foreign entities, remains to be verified.
Conclusions
It will therefore be essential to rely on consultants with solid practical experience in managing international disputes regarding competition and intellectual property, specifically concerning the delicate Chinese market. The complexity of the new regulatory framework, combined with the speed at which digital and commercial dynamics evolve, makes a strategic and interdisciplinary approach necessary, one that combines legal expertise, knowledge of local administrative practices, and cultural sensitivity.