Major Taiwanese news network Liberty Times Network (LTN) recently reported that, in addition to passing the Hong Kong National Security Law, China’s 13th National People’s Congress also passed a draft Data Security Bill. According to the official draft version online, the proposed new law may require foreign companies operating in China to surrender operational data obtained outside China or face a fine or closure. Until August 16, the draft is currently seeking public opinion. The new proposed data law was drafted under the name of protecting “important data.” It has a broad definition of data whose breach can cause damage in areas of national security, economic security, and social stability. The proposed draft is planned to become law in 2021. The law may also ask foreign companies operating in China to provide information related to “network security.” Experts expressed the belief that the government is, for the first time, seeking an “Extraterritorial effect,” which is designed to cancel out a similar power U.S. laws sometimes have. It also authorizes the government to define what “important data” is. According to the proposal, individuals and organizations operating outside China may also be covered if their activities harm China’s national security or public interests.
Source: LTN, July 9, 2020