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

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: “Since 1997, the PRC Criminal Code has provided criminal sanctions for any serious trade secret offence that causes 'material losses' to the owner of the trade secret.”

This is as clear as PRC law gets: damage a company by stealing its trade secrets and face a criminal record and up to seven years in jail. The law applies to both Chinese and foreign enterprises or individuals. Businesses must also be very careful with data which may be regarded as a state secret. As an example, citing an anonymous official the Beijing Times published (accurate) details of official second quarter GDP data hours before the National Bureau of Statistics convened its official press conference. There will be an investigation.