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China’s New Cyber Law Would Mandate Annual Security Assessments

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April 11, 2017, 9:11 AM ET
China Cyber Law
FILE - In this Aug. 16, 2016 file photo, a worker is silhouetted against a computer display showing a live visualization of the online phishing and fraudulent phone calls across China during the 4th China Internet Security Conference (ISC) in Beijing. China's legislature has approved a cybersecurity law on Monday, Nov. 7, 2016 that human rights activists warn will tighten political controls and foreign companies say might isolate Chinese industries. (AP Photo/Ng Han Guan, File)Ng Han Guan—AP
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China’s top cyber authority on Tuesday released a draft law that would require firms exporting data to undergo an annual security assessment, in the latest of several recent safeguards against threats such as hacking and terrorism.

Any business transferring data of over 1000 gigabytes or affecting over 500,000 users will be assessed on its security measures and on the potential of the data to harm national interests, showed the draft from the Cyberspace Administration of China (CAC).

The law would ban the export of any economic, technological or scientific data whose transfer would pose a threat to security or public interests. It would also require firms to obtain the consent of users before transmitting data abroad.

The proposed law, which focuses on personal information security, comes just a day after state media reported government rewards of $1,500 to $73,000 for citizens who report suspected spies.

It is also an extension of legislation passed in November formalizing a range of controls over firms that handle data in industries the government deems critical to national interests.

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Business groups have criticized the November law, which is effective from June, calling rules “vague” and claiming they unfairly target foreign companies with stringent requirements.

Chinese officials denied that the November law targets foreign firms.

Under the rules released on Tuesday, sensitive geographic data such as information on marine environments would also be subject to scrutiny. Destination countries and the likelihood of oversees tampering would also be factored in to any assessments.

The draft is open for public comment until May 11.

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