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ARTICLE · 02 SEPTEMBER 2016

Revised Draft Cyber Security Law May Significantly Impact Multinationals In China

De Brauw Blackstone Westbroek
De Brauw Blackstone Westbroek
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De Brauw Blackstone Westbroek

De Brauw Blackstone Westbroek

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China's government released a second draft of its cyber security law on 5 July 2016. Once adopted, this law will likely have a significant impact on all business sectors in China.

ChinaPrivacy
Gaby Smeenk
Gaby Smeenk
Chantal De Graaf
Chantal De Graaf
Axel Arnbak
Axel Arnbak
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China's government released a second draft of its cyber security law on 5 July 2016. Once adopted, this law will likely have a significant impact on all business sectors in China. Compared to the first draft, which was previously highlighted in In context, the new draft contains few adjustments. With this draft available to the public, the adoption of the new law moves one step closer.

We recommend that multinationals active in China closely monitor further legislative developments; specifically, the requirements relating to the storage of data in China and the inspection of certain key network products before they can be sold in China.

Requirement to store data in China

The cyber security law (CSL) requires companies to store certain information within the mainland territory of China. This information may be transferred abroad only if there is a business purpose which requires the transfer and if a security assessment has been conducted.

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