Second Draft Of China's New Cybersecurity Law Raises Concerns For Foreign Enterprises

In July 2016, a second draft of a new cybersecurity law was released in China, which strengthens controls over the flow of online information and enhances protection of personal data. This law has important implications, given that China has the largest and fastest growing e-commerce market in the world.

The first draft of this law was released in July 2015 and sparked significant opposition from foreign investors, as it was felt that certain provisions restricted trade and were particularly discriminative against foreign companies. The second draft fails to resolve these concerns and has led to a significant number of global associations petitioning Premier Li Keqiang, urging Beijing to revise the draft.