China's New Cybersecurity Law Imposes Heightened Restrictions On Company Computer Networks

On June 1, 2017, China's new Cyber Security Law (CSL) took effect. The CSL and implementing regulations cast a wide net that will likely require compliance by, and in some cases pose risks to, multinational companies operating in China. Our analysis suggests that the CSL will affect the following business sectors:

• Owners and administrators of computer networks, to include network service providers.
• Businesses that collect personal information data in China.
• Those classified as businesses supporting critical information infrastructure. Such critical sectors include public communication and information services, energy, transportation, financial, and other sectors where damage to its information network could seriously endanger China's national security, economy, people's livelihood, and public interests.