China’s amended Anti-Unfair Competition Law: key updates and implications for overseas companies

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

China’s amended Anti-Unfair Competition Law: key updates and implications for overseas companies

Sponsored by

ccpit.jpg
Shanghai skyline

Hongxia Wu of CCPIT Patent and Trademark Law Office outlines the potential impact of the 2025 amendments on overseas companies operating in the country

As China’s foundational legal regime for promoting fair competition, regulating market order, and safeguarding the healthy operation of the market economy, the Anti-Unfair Competition Law has a history spanning more than three decades since its 1993 enactment. It has been amended twice, in 2017 and 2019, with a third amendment completed by the Standing Committee of the National People’s Congress. On June 27 2025, the amended Anti-Unfair Competition Law (the Law) was promulgated, and it took effect on October 15 2025.

The amendments respond to new developments in the internet industry, directly addressing emerging situations and issues related to online unfair competition, and further improving the rules governing fair competition in the digital and platform-driven economy.

Key updates

The main contents and key highlights of the amendments to the law are as follows.

  • Acts of confusion (Article 7):

    • Unauthorised use of influential “new media account names, applications names or icons” may constitute acts of confusion;

    • Unauthorised use, as enterprise names, of others’ registered trademarks or well-known unregistered trademarks may constitute acts of confusion; and

    • Unauthorised use, as search keywords, of others’ product names, enterprise names (including abbreviations and trade names), registered trademarks, and well-known unregistered trademarks may constitute acts of confusion.

  • Assisting others in committing acts of confusion (articles 7, 23):

    • Business operators shall not assist others in implementing acts of confusion; and

    • Business operators that assist others in implementing acts of confusion are subject to administrative penalties, including confiscation of illegal goods, fines, and revocation of business licence.

  • Online unfair competition acts (articles 13, 29):

    • Business operators shall not utilise data, algorithms, techniques, platform rules, etc. for unfair competition;

    • Business operators shall not unlawfully acquire or use data through fraud, coercion, circumvention, or destruction of technical measures;

    • Business operators shall not abuse platform rules by directly or indirectly instructing others to engage in false transactions, fake reviews, malicious returns, etc.; and

    • The upper limit of fines is increased from CNY 3 million to CNY 5 million as administrative penalties on business operators that commit online unfair competition acts.

  • Platform responsibilities (articles 14, 21, 30):

    • Platform operators are subject to administrative penalties, including fines of up to CNY 2 million for forcing or indirectly forcing on-platform business operators to sell goods at below-cost prices, thereby disrupting market order;

    • Enhances the obligations for platform operators to regulate unfair competition within platforms, including establishing fair competition rules, mechanisms for reporting and resolving disputes, and guiding business operators to abide by laws; and

    • Specifies that where platform operators discover unfair competition acts within their platform, they shall take necessary legal disposal measures, keep relevant records, and report to supervisory authorities at or above the county level of the business operator’s location.

  • Commercial bribery (articles 8, 24):

    • Adds provisions prohibiting entities and individuals from accepting bribes, clarifying the bilateral prohibition on offering and accepting bribes;

    • Introduces personal accountability for commercial bribery, expanding liability to the legal representatives, senior managers, and individuals with direct responsibility for business operators; and

    • Increases the penalty cap for commercial bribery from CNY 3 million to CNY 5 million.

  • False advertising (articles 9, 25):

    • Expands the scope of false advertising targets from “consumers” to “consumers and other operators”;

    • Prohibits operators from assisting others in committing false advertising through “false reviews”; and

    • Removes the lower limit of the fine for false advertising (previously CNY 200,000).

  • Commercial defamation (Article 12):

    • Prohibits operators from directing others to engage in commercial defamation; and

    • Expands the scope of commercial defamation targets from “competitors” to “other operators”.

  • Extraterritorial application (Article 40):

    • Where an unfair competition act is committed outside the territory of the People’s Republic of China but disrupts the domestic market order or harms the legitimate rights and interests of domestic business operators or consumers, it shall be handled in accordance with this law and relevant laws.

Key implications for overseas companies operating in China

Strengthened platform governance and accountability

Specifically, platforms are prohibited from forcing or indirectly forcing on-platform business operators to sell goods at below-cost prices, thereby disrupting market order. In addition, platforms are required to establish mechanisms for reporting and resolving disputes. Companies can file complaints through these platform mechanisms to resolve unfair competition issues effectively.

Protection against misuse of intellectual property as search keywords

Companies can pursue legal responsibility if others use their own trademarks or corporate names as search keywords to free-ride their reputation and mislead consumers, provided that the use may cause confusion regarding the source of goods or lead to false associations. The amendment clarifies rules on improper search keyword use, enhancing enforcement predictability and clarity.

New safeguards against directed commercial defamation

The prohibition on “directing others” to commit commercial defamation covers practices such as hiring third parties to publish negative information, organising reputation-damaging public opinion campaigns, or covert competitive advertising by promotion agencies, multi-channel networks, or influencers. Companies can rely on the law to protect their legitimate rights and interests against such conduct.

more from across site and SHARED ros bottom lb

More from across our site

The acquisition is expected to help Clorox bolster its position in the health and hygiene consumer products market
AIPPI, which has faced boycott threats over the 2027 World Congress, says it has a long-standing commitment to engagement and geographic rotation
The shortlist for our annual Americas Awards will be published next month, with potential winners in more than 90 categories set to be revealed
News of Nokia signing a licensing deal with a Chinese automaker and Linklaters appointing a new head of tech and IP were also among the top talking points
After five IP partners left the firm for White & Case, the IP market could yet see more laterals
The court plans to introduce a system for expert-led SEP mediation, intended to help parties come to an agreement within three sessions
Paul Chapman and Robert Lind, who are retiring from Marks & Clerk after 30-year careers, discuss workplace loyalty, client care, and why we should be optimistic but cautious about AI
Brantsandpatents is seeking to boost its expertise across key IP services in the Benelux region
Shwetasree Majumder, managing partner of Fidus Law Chambers, discusses fighting gender bias and why her firm is building a strong AI and tech expertise
Hady Khawand, founder of AÏP Genius, discusses creating an AI-powered IP platform, and why, with the law evolving faster than ever, adaptability is key
Gift this article