China Adopts New Law On Cybersecurity

On 7 November 2016, the Standing Committee of the National People's Congress has formally passed China's first comprehensive privacy and security regulation for cyberspace. Since the new Cyber Security Law (CSL) will come into effect on 1 June 2017, technology companies that are operating in or planning to expand to the Peoples Republic of China (PRC) are well advised to adapt their IT infrastructure and data architecture to the new law. Violations of the law may, at worst, lead to high fines, website shutdowns or license revocations. Some of the most significant changes brought about by the new law are briefly outlined below.

Who Is Affected and What Is New?

The CSL applies to operators of Critical Information Infrastructures (CIIs) and network operators. A network operator is defined as an operator of basic telecommunication networks, internet information service providers and key information systems. However, it is not clear which companies qualify as operators