By: Dan Hart
An alliance of forty-six business groups appealed to the Chinese government to reconsider proposed legislation that would enforce strict cyber-security rules. These business groups, hailing from the United States, Europe, and Asia, believe the new regulations will negatively impact foreign trade with China and serve to further isolate the country.[1] These complaints are the latest against a perceived trend of economic isolationism, or favoritism towards domestic business over foreign investors.[2]
The rules would allow any business to transfer data, required for business purposes, past China’s borders only after passing a security evaluation. The rules would impose a legal requirement on internet providers to cooperate with enforcement agencies’ counter-terrorism and criminal investigations by providing data deemed relevant.[3] They would also require network operators to accept government supervision and to “comply with social morals.”[4]
The proposed cyber security regulations affect international business to varying degrees, but would have the greatest impact on domestic Chinese businesses and Chinese citizens. Chinese citizens would be required to store all their personal information as well as their business information on Chinese servers.[5]
These new security rules would grant the Chinese government even greater control over their citizens’ private lives and information, limiting both what they can see from the rest of the world and how they can interact with that world.
[1] http://www.businessinsider.com/ap-business-groups-appeal-to-china-over-cybersecurity-law-2016-8
[2] http://www.businessinsider.com/ap-business-groups-appeal-to-china-over-cybersecurity-law-2016-8
[3] http://fortune.com/2016/08/17/china-cybersecurity-law-foreign-business/
[4] http://www.reuters.com/article/us-china-cyber-lawmaking-idUSKCN0ZD1E4
[5] http://www.reuters.com/article/us-china-cyber-lawmaking-idUSKCN0ZD1E4