Why China’s New Cybersecurity Law Will Hurt the Tech Sector, and China Itself

China’s new cybersecurity law, which grants the communist regime a tighter grip on the Internet and technology, could badly backfire.
Why China’s New Cybersecurity Law Will Hurt the Tech Sector, and China Itself
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China ratified a new cybersecurity law July 8 granting the communist regime an even tighter grip on the Internet and technology industries.

The law, which is wide-ranging and covers everything from politics to personal data, puts foreign tech companies at a disadvantage and could stifle innovation of its domestic technology sector.

The 68-article document seeks to “safeguard cyberspace sovereignty and national security.” In addition to bolstering security, China plans to increase control of information, censorship, and suppress free flow of information. Chief among the guidelines is the requirement for Internet service providers and other technology companies to store data physically in China.

Fan Yu
Fan Yu
Author
Fan Yu is an expert in finance and economics and has contributed analyses on China's economy since 2015.
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