Zhejiang authorities published China's first provincial-level government document regulating the protection of business secrets on Sept 15.

Business secrets are critical to the survival and development of an enterprise. Zhejiang's new regulations are meant to prevent companies from suffering huge losses due to the leaking of confidential information.

An elevator manufacturer based in Nanxun district, Huzhou, Zhejiang province recently lost out on orders for hundreds of elevators, as one of its sales managers, along with client resources, was poached by a competitor. "Huge losses could have been avoided if the company had been aware that client resources are business secrets and safeguarded them accordingly," said Pan Guoqiang, an official in Nanxun district who helped in defending the company's rights.

"A lot of companies don't know what business secrets are or haven't found effective ways to protect them," said Chen Yu, a judge at the Zhejiang High People's Court. Chen believes the new government document provides companies with a useful, detailed guide on how to protect their business secrets.

The new regulations not only define the scope of business secrets, but also explain how to manage secret-related personnel and sections. Once an obligee's business secrets are violated, the new regulations help to recover losses through emergency treatment, accumulating evidence, and defending the company's rights.

"The new regulations are part of the province's creative efforts to modernize its governance, promote innovation and entrepreneurship, ensure a fair market, and enhance the protection of intellectual property rights," said an official from the Zhejiang Administration of Market Regulation.