China Adopts Cybersecurity Law Despite Foreign Opposition

Bloomberg News:  China has green-lit a sweeping and controversial law that may grant Beijing unprecedented access to foreign companies’ technology and hamstring their operations in the world’s second-largest economy.

The Cyber Security Law was passed by the Standing Committee of the National People’s Congress, China’s top legislature, and will take effect in June, government officials said Monday. Among other things, it requires internet operators to cooperate with investigations involving crime and national security, and imposes mandatory testing and certification of computer equipment. Companies must also give government investigators full access to their data if wrong-doing is suspected.

China’s grown increasingly aggressive about safeguarding its IT systems in the wake of Edward Snowden’s revelations about U.S. spying, and is intent on policing cyberspace as public discourse shifts to online forums such as Tencent Holdings Ltd.’s WeChat. The fear among foreign companies is that requirements to store data locally and employ only technology deemed “secure” means local firms gain yet another edge over foreign rivals from Microsoft Corp. to Cisco System Inc.  Cont'd...

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