Chinese Cybersecurity Law Reform

82% American companies doing business in China are "somewhat or very concerned" at how the new data security regulations, which came into effect in June, could impact their business in the world's second-largest economy. Among the most... Read more
82% American companies doing business in China are "somewhat or very concerned" at how the new data security regulations, which came into effect in June, could impact their business in the world's second-largest economy. Among the most contentious clauses is the new law's mandate requiring what it calls "network operators" and "critical information infrastructure operators" to submit to government security reviews, which some companies fear will involve turning over encryption keys to Beijing. China’s data policies disrupt communications between a company’s China facilities and its other global operations; stifle cross-border innovation; and increase costs by requiring the installation of duplicative IT infrastructure. Chinese and foreign companies are unable to use many innovative cloud computing solutions in China due to China’s overly restrictive licensing regime. These policies complicate the cost, efficiency, and information security considerations for both foreign and domestic company operations in China. Read less
Shanghai, Shanghai ( Global)
April 28, 2018
Project endorsers:

Recent activity


    No activity to show

uschinabusinesscouncil

April 28, 2018

China should use a very narrow definition of national security and “state secrets” to ensure that companies do not unintentionally violate regulations regarding the storage and transfer of such information. This definition should be limited in scope to only include information that has direct bearing on national... Read more

April 28, 2018

China should use a very narrow definition of national security and “state secrets” to ensure that companies do not unintentionally violate regulations regarding the storage and transfer of such information. This definition should be limited in scope to only include information that has direct bearing on national security.

China should look to the best practices and expertise offered by international companies and developed through global standards setting processes, which integrate traditional business practices with global information networks. Allowing certain information to be globally accessed by companies, support teams, and interactive products is a key component of “smart technology” — a goal of the 13th Five-Year Plan — and is necessary for successful high-level policy plans across sectors, such as Internet+, the Big Data Promotion Plan, and development plans for greater energy efficiency via smart cities or China’s financial industry.

Read less
No comments
Reply
Reply

uschinabusinesscouncil

April 28, 2018

China should allow both foreign and domestic companies to provide cloud computing services. Specifically, we recommend MIIT re-evaluate China’s regulatory approach to cloud computing, using international approaches that generally categorize cloud computing as a computer service rather than a value-added telecommunications service... Read more

April 28, 2018

China should allow both foreign and domestic companies to provide cloud computing services. Specifically, we recommend MIIT re-evaluate China’s regulatory approach to cloud computing, using international approaches that generally categorize cloud computing as a computer service rather than a value-added telecommunications service (VATS). Such a change would align China’s approach with international best practices.

Read less
No comments
Reply
Reply

Jade Chang

April 28, 2018

China should allow industry stakeholders to utilize legally registered virtual private network (VPN) services to maintain unfettered access to the global internet for legitimate business purposes. In VPN registration processes, China should require only accounting for the number of users of the VPN and not require the specific personal information of users of the service. 

No comments
Reply
Reply

 

Your solution

Supporting info

Comments on Draft Measures for Security Review of Online Products and Services

2017/03/16 - U.S.-China Business Council