The country has just adopted a new cybersecurity law, which is supposed to tackle threats like hacking and terrorism. However, the new law has also triggered concern from foreign business and rights groups. The legislation is set to come into effect in June 2017.
The critics argue that the new law threatens to shut out foreign tech firms. Besides, the law lists contentious requirements for security reviews and requires data to be stored on servers in China. The suggestions are that it will further tighten restrictions on China’s Internet, which is already subject to the most sophisticated online censorship mechanism dubbed the Great Firewall of China.
It is known that 40+ global business groups petitioned the Chinese authorities urging them to amend controversial sections of the law, while Chinese officials claimed it wouldn’t interfere with foreign business interests.
The demands to store personal and important business data in the country, provide support to security agencies and pass national security reviews all have raised concern within companies, which fear they would be required either to hand over intellectual property or build backdoors in their products to be allowed to operate in China’s market.
The American Chamber of Commerce in China called the provisions of the law “vague, ambiguous, and subject to broad interpretation”, while Human Rights Watch said its elements like criminalizing the use of the web to “damage national unity” can potentially restrict online freedom.
In the meantime, the Cyberspace Administration of China claimed that every article in the law was in accordance with the rules of international trade and that the country is not going to close its doors on foreign companies.
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