XPeng Inc. has officially released its "Trade Secret Compliance Management System" internally, upgrading a former employee's non-compete violation case into a top-level compliance framework. This system establishes a complete confidentiality loop encompassing prevention, in-process management, and post-incident accountability.
The direct catalyst for this comprehensive policy update was a high-stakes arbitration case XPeng initiated in June 2024. A research and development employee, who had signed a one-year non-compete agreement, left the company and promptly joined a competitor in a similar R&D role, despite receiving monthly compensation payments from XPeng as stipulated. XPeng filed multiple claims, demanding the employee continue to honor the agreement, return all compensation and stock gains, and pay penalties, totaling nearly 10 million yuan.
The new system establishes four core principles, including classified management and minimum necessary access, and designates department heads as the primary responsible parties for confidentiality. All operations throughout the trade secret lifecycle are now recorded and controlled. A key addition is the full-process management of employee onboarding and offboarding. During onboarding, the system verifies the candidate's non-compete history, requiring those with competitor backgrounds to sign a non-infringement commitment. During offboarding, procedures include the transfer of confidential materials, revocation of account permissions, and for sensitive roles, a review of abnormal activities like bulk downloads or external sends. The system also monitors the employee's employment status during the non-compete period.
Covering R&D, supply chain, and AI tool management, the policy allows XPeng to choose between patent or trade secret protection based on technology characteristics. Supplier access is classified and controlled, with encrypted transmission and digital watermarks used to reduce leak risks. Employee use of AI tools requires prior approval and data desensitization, with call logs retained for two years and subject to quarterly audits. In the event of a leak, a multi-departmental team from legal, IT, and HR will jointly collect evidence, including chat records, system logs, and surveillance footage. This can lead to internal sanctions, labor arbitration, or even criminal complaints. The company has also established a whistleblower incentive program to protect employees who report violations in good faith from retaliation.
As XPeng continues to ramp up its high-R&D areas, including physical AI, robotics, and low-altitude flyers, with an estimated 12 billion yuan in R&D spending by 2026, this new confidentiality system is a critical measure to safeguard its core technological competitiveness amid high talent mobility and intensifying technical competition.