China Proposes Stricter Cybersecurity Measures With Harsh Fines and Restrictions
China is proposing tougher cybersecurity measures with substantial fines and restrictions. The draft amendment to the Cybersecurity Law, if approved, will raise penalties for security incidents and uncertified products. It also introduces certification requirements for technology products.
The Cyberspace Administration of China (CAC) oversees internet regulation and cybersecurity. The proposed amendment aims to address Western concerns about potential exploitation of Chinese products during conflicts or crises. It introduces harsher penalties for using uncertified products in critical sectors and storing critical information on international cloud servers.
Companies and individuals selling uncertified products may face fines up to three times the illegal gains. Operators using such products may be fined up to 10 times the procurement cost. The government can also restrict the use of untrusted products within critical information infrastructure (CII) sectors like transport, energy, and finance.
Eugenio Benincasa, a senior cyberdefense researcher, noted the draft significantly raises stakes for companies in China's cyber ecosystem. Tim Stevens, head of a cybersecurity research group at King's College London, stated China is pushing standards internationally that may not align with democratic norms.
The proposed amendment introduces certification requirements for technology products, increases fines for security incidents and uncertified products, and tightens rules on data transfers and illegal content. Directly responsible supervisors may face personal fines of up to ¥100,000 ($14,000) for security incidents. Critics argue it reinforces duties to facilitate government censorship and surveillance activities, posing a global threat.
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