China drafts cyber-security industry plan

July 13, 2021

China’s Ministry of Industry and Information Technology has drafted a cyber-security industry plan.

Key Points

It is a three-year action plan to develop China’s cyber-security industry.
China’s cyber-security is estimated to be worth more than 250 billion yuan ($38.6 billion) by 2023.
This draft plan was formulated as Chinese authorities have step up efforts towards draft regulations for a better govern data storage, data transfer and personal data privacy.
This draft plan came in the backdrop of a regulatory probe of Chinese ride-hailing giant Didi Chuxing for violating data privacy laws.

Cybersecurity Law of People’s Republic of China

This law, commonly referred to as Chinese Cybersecurity Law, was enacted to increase data localization, data protection, and cybersecurity for national security. It was enacted by Standing Committee of National People’s Congress on November 7, 2016. Law came into force on June 1, 2017.

Provisions of Law

The law requires network operators to store data within China. It also allows Chinese authorities to conduct spot-checks on network operations of company. Law offers principal norms on some of the issues that are not immediately urgent but having long-term importance. It also provides elaborate regulations and definitions on legal liability. For illegal conduct, Law provides for punishments like fines, suspension for rectification, revocation of permits & business licenses.

Is the law applicable to whole country?

This censorship by law affects whole China except its special administrative regions like Hong Kong and Macau because these regions have a high degree of autonomy. It is specified in local laws as “One country, two systems” principle.