November 07 11:28
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- China's Legislature Passes Cybersecurity Law; Concerns Raised
China’s top legislative body has passed the Cybersecurity Law to “defend cybersovereignty” and protect the public interest, but the measure has raised concern among foreign companies.
The National People’s Congress Standing Committee approved the country’s cybersecurity law, which will take effect in June next year, official Xinhua News Agency said Monday.
Yang Heqing, an official on the National People's Congress Standing Committee, said during a news conference that cybersecurity is deeply linked to national security and China’s development.
While the law has not been officially published, the second draft imposed a series of restrictions on Internet companies, including requirements that personal information and business data be stored on servers located in China and Internet companies monitor and report to the government “network security incidents.”
The biggest challenges come from the definition of “critical information infrastructure,” an undefined term that could include a broad range of businesses and “can be expanded by the State Council,” said Jake Parker, vice president of the U.S. China Business Council.
Although members of the U.S. China Business Council are committed to long-term operations in China, installing a separate server inside China is costly and poses a challenge for integrating the data into global network, Parker said.