China, the world’s second largest economy, is planning on publishing new cybersecurity laws, to be effective June 2017. President Xi Jinping’s Cyber Security Law is intended to safeguard their IT Systems from hackers across the world, especially after WannaCry (the global ransomware attack in May). The fact is, after Edward Snowden had exposed the US government for spying, many countries (and citizens) were left feeling exposed. There’s no surprise that a country, as large as China, is now implementing cyber protocols and online policing regulations to avoid such a breach.
So how does this concern foreign organizations? Through publishing laws and intellectual property.
Even though “The Great Firewall” strictly controls the country’s web content, some areas were still breached in the WannaCry attack. The new Cyber Security Law is intended to protect the country’s national honour, as it bans users from publishing anything that damages "national honour", "disturbs economic or social order" or is aimed at "overthrowing the socialist system". In terms of consumer privacy legislations, the Cyber Security Law also forbids companies from storing personal information about Chinese citizens, outside of the country without permission.
Many stipulations in the Cyber Security Law state that: Internet operators must cooperate with investigations involving crime and national security, computer equipment must undergo mandatory testing and certification, and companies must also give government investigators full access to their data if wrong-doing is suspected. According to Bloomberg Technology, certification of this equipment could mean that companies will be asked to provide a source code, encryption details, or other critical intellectual property for review. Georges Haour writes in Fortune Magazine, “given the weaknesses of China’s enforcement of laws around intellectual property, it’s easy to see how trade secrets can fall into the hands of Chinese competitors at the expense of the best interests of foreign firms.”
Companies will find that Operations & Compliance Management Software will prove to be the most effective tool to ensure compliance, especially when legislation is still changing. For more information about compliance, download Uzado’s whitepaper: