China’s new Cybersecurity Law rattling foreign firms

October 9, 2019 posted by

China’s new Cybersecurity Law goes into force
on Thursday with an aim to tighten what is already one of the world’s most restrictive
online environments. With more on this and other news around the
world we turn to Ro Aram. Aram… the law seeks to protect China’s networks
and private user data, but foreign firms are concerned about its potential impact on their
ability to do business in the world’s second largest economy…. That’s right Mark… companies have been urging
the Chinese government to delay the legislation’s implementation, but these calls have fallen
on deaf ears. To add to concerns, the language of the new
law, which was adopted last November, was tweaked recently to broaden the scope of those
affected by it. Multinationals are worried it may discriminate
against foreign businesses and that its requirements on matters such as technology disclosure and
encryption could give Chinese companies an unfair advantage. Data collected within China will have to stay
inside the country, raising suspicions that Beijing could steal trade secrets or intellectual
property from foreign companies doing business there. There are also concerns about the vagueness
and scope of the legislation as those subject to the restriction of data transfer outside
of China’s borders have now been classified as “network operators” which could mean any
business regardless of size. They want more clarification on what businesses
will be affected and to what extent, hence the calls for a delay. Although some have praised the new law’s implementation,
especially amid fears after the global WannaCry ransomware attack, companies are jittery about
their products or services having to go through even tougher security checks, saying it will
hinder cross-border trade.

No Comments

Leave a Comment

Your email address will not be published. Required fields are marked *