China's 2025 Anti-Unfair Competition Law: Implications for Trademark Protection in Hong Kong

China’s newly revised Anti-Unfair Competition Law (AUCL)（反不正當競爭法） comes into effective today on October 15, 2025. The law introduces significant changes that impact trademark protection and competitive practices, with direct relevance for businesses operating inside or outside China from Hong Kong. Passed on June 27, 2025 by the Standing Committee of the 14th National People’s Congress, the law is now expanded to 41 articles, addressing modern challenges in the digital economy and strengthening coordination with the China Trademark Law.

Below, we outline the key updates and their implications for trademark protection, particularly for Hong Kong businesses engaging with mainland markets.

Key Changes in the 2025 Anti-Unfair Competition Law

The revised AUCL targets unfair practices in both traditional and digital markets, offering enhanced tools to protect intellectual property (IP) and maintain fair competition. The main updates include:

• Stronger Anti-Confusion Measures: The law broadens protections against acts causing consumer confusion, such as unauthorized use of trademarks as trade names or search keywords. It now explicitly covers digital identifiers like app icons, social media account names, and other new media elements. A new “safe harbour” provision (Article 23) protects innocent sellers who unknowingly deal in infringing goods, provided they can prove legitimate sourcing.

• Digital Economy Regulations: New rules prohibit unfair practices like data scraping, algorithm misuse for traffic hijacking, and fake online reviews or transactions, safeguarding brand integrity in digital marketplaces (Articles 13 and 14).

• Platform Accountability: E-commerce platforms must establish rules to monitor and prevent unfair competition, including trademark-related violations, and handle complaints efficiently.

• Protections Against Large Enterprises: The law prohibits large firms from abusing their market advantages (e.g., through coercive pricing or delayed payments to SMEs), protecting smaller businesses (Article 15).

• Harsher Penalties: Penalties have increased, with fines up to RMB 5 million for serious violations, confiscation of illegal gains, and personal liability for responsible individuals up to RMB 1 million.

• Extraterritorial Application: The law now applies to unfair acts outside China that harm its domestic markets, consumers, or businesses (Article 40).

These changes create a robust framework to address modern competitive challenges, particularly in digital and cross-border contexts.

Implications for Trademark Protection

The 2025 AUCL complements China’s Trademark Law by providing additional avenues to protect brands, especially in scenarios where direct infringement claims are challenging. Key impacts for trademarks include:

• Enhanced Anti-Confusion Protections: The law explicitly prohibits unauthorized use of registered or well-known unregistered trademarks in ways that cause confusion, such as in trade names or hidden search keywords. This is particularly relevant for e-commerce, where keyword bidding can mislead consumers.

• Safeguards for Unregistered Marks: Well-known unregistered trademarks gain stronger protections against confusing uses, provided their market influence is proven, filling gaps in the Trademark Law’s registration-focused system.

• Digital Brand Protection: By covering digital identifiers (e.g., app names, social media handles), the AUCL helps protect modern brand assets that function like trademarks in online spaces.

• Platform Enforcement: Platforms are now obligated to prevent trademark-related unfair acts, offering businesses a faster route to address issues like counterfeit listings or brand misuse online.

• Cross-Border Enforcement: The extraterritorial reach allows Hong Kong businesses to pursue foreign actors whose actions harm Chinese markets, strengthening global brand protection.

  
  

Relevance for Hong Kong Businesses

For Hong Kong businesses, the AUCL’s revisions are particularly significant due to the city’s role as a gateway to mainland China. Key considerations include:

• Strengthened Brand Protection: The law’s focus on confusion and digital identifiers helps Hong Kong brands safeguard their reputation in mainland markets, especially in e-commerce and digital marketing.

• Cross-Border Opportunities: The extraterritorial clause enables Hong Kong firms to address international infringements affecting their mainland operations, aligning with the city’s global business outlook.

• Compliance Needs: Businesses must review their digital practices, supply chain transparency, and platform engagements to comply with the AUCL’s stricter rules, particularly for those operating on mainland e-commerce platforms.

Real-World Context

Recent global trademark disputes illustrate the importance of these changes. For example, Apple’s ongoing lawsuit against Apple Cinemas (filed August 2025) in the U.S. highlights the risks of brand confusion, a key focus of the AUCL’s anti-confusion measures. Similarly, Starbucks’ settlement with Black Bear Micro Roastery over logo similarities underscores the need for clear brand distinctions, a concern now addressed more robustly in China. Hong Kong businesses, especially SMEs entering the mainland, should take note to avoid similar disputes and leverage the AUCL’s protections.

Next Steps

The 2025 AUCL offers Hong Kong businesses powerful tools to protect their trademarks in the digital age, but it also introduces new compliance requirements. Businesses should consider reviewing their trademark portfolios, digital marketing strategies, and supply chain practices to align with the revised law. Gathering evidence of market influence for unregistered marks and monitoring platform compliance will be critical for maximizing protections.

To consult more about trademark filing and protection strategy, feel free to contact us at +852 2833 0023 / +852 9545 3177 (Whatsapp) / ip@actualisip.com (email).