China Introduces New Cybersecurity Law

It’s certainly been a long time coming, but starting Thursday (June 1), China will officially have its own cybersecurity law.
On Tuesday (May 29), the Financial Express reported that the law is the first of its kind in the country, and will restrict online providers from collecting personal information. The publication further states that the Cybersecurity Law, which was introduced in November 2016, will restrict internet providers from obtaining information that does not pertain to their services.
What’s more, Xinhua, a Chinese news agency, stated that individuals will now have the right to ask service providers to remove their personal information if it is compromised in any way.

“Cybersecurity management staff must also protect information obtained, and are banned from leaking or selling the information, including privacy and commercial secrets,” the outlet states.  “Those who violate the provisions and infringe on personal information will face hefty fines,” although no further details were provided.
Xinhua also highlights that the new law restricts individuals from using the internet to “conduct fraud or sell prohibited goods.”
While indeed that does sound favorable on an individual level, and has been widely received as a “milestone in introducing much needed data privacy,” the Financial Times states, it has not been met without criticism.
The Times goes on to say that analysts have voiced concerns that the new law will assist in steal trade secrets in Beijing, or even intellectual property from companies abroad. The publication quoted Carly Ramsey, associate director at Control Risks, as saying that the law is vague and “exceptionally wide in scope.”
Similarly, Reuters reported on Tuesday (May 29), that the law has been slammed in other parts of the world as well. More specifically, the outlet notes that the law “threatens” to push away foreign technology companies that could be considered “critical” by the country and includes questionable requirements for security and data stored on Chinese servers.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.