China’s new data security law takes effect from Wednesday — the latest effort to tighten oversight of the country’s mammoth tech sector.
The broadly worded law seeks to tighten the leash on China’s tech giants and what they do with information from their hundreds of millions of users.
It also comes as fears grow over data security with government departments becoming increasingly dependent on cloud storage services.
Broad scope
Beijing has also flagged national security concerns as justification for the law. As Chinese tech firms look to branch out overseas, authorities fear domestic data will end up in foreign hands.
The law lays down the responsibilities of all companies and organisations handling data. It stipulates fines of up to 10 million yuan ($1.55 million) for a range of offences, including leaks and failing to verify the identity of buyers or sellers of information. Its scope is broad, and includes data stored and handled within China’s borders as well as data abroad that could harm China’s national security or the rights of its citizens.
