China pushes through cybersecurity law despite foreign business fears
Overseas companies say requirements to store data in China and undergo ‘security reviews’ pose threat to their intellectual property and security
China has adopted a controversial cybersecurity law to tighten control over the internet, triggering concerns from foreign businesses and rights organisations.
The law was passed yesterday by the standing committee of the national legislature and will come into effect in June next year.
“China is an internet power and as one of the countries that faces the greatest internet security risks, it urgently needs to establish and perfect network security legal systems,” committee official Yang Heqing said.
[China] urgently needs to establish and perfect network security legal systems
Contentious provisions include demands that “operators of critical information infrastructure” store personal information and important business data in China, provide unspecified “technical support” to security agencies and pass national security reviews. Those critical areas include information services, transport and finance.
Firms that store or provide internet data overseas without approval could have their business suspended or shut down and their business licenses revoked.
They are also required by law to provide technical support and assistance to police and national security agencies “safeguarding national security and investigating crimes”.
The demands have raised concern within foreign companies that they would have to hand over intellectual property or open back doors in products to operate in China.
