China Cybersecurity Law for Foreign Companies

China's Cybersecurity Law imposes significant obligations on companies operating networks in China. Here's what foreign companies need to know about compliance.

Who Must Comply?

• Network operators in China
• Companies collecting data in China
• Critical information infrastructure operators
• Foreign companies with China operations

Key Requirements

Network Security

• Implement security management systems
• Designate security personnel
• Take technical measures against attacks
• Monitor and log network activity
• Develop emergency response plans

Data Localization

• Personal information collected in China must be stored in China
• Important data must be stored locally
• Cross-border transfer requires security assessment

Personal Information Protection

• Obtain consent for collection
• Collect only necessary information
• Implement security measures
• Report data breaches
• Allow users to delete data

Cross-Border Data Transfer

To transfer data outside China:

• Security assessment (for important data)
• Standard contract filing
• Certification
• User consent

Compliance Steps

1. Assess what data you collect
2. Determine if you're critical infrastructure
3. Implement required security measures
4. Establish data localization
5. Create cross-border transfer mechanisms
6. Train employees
7. Document compliance efforts

Penalties

• Fines up to ¥1 million for companies
• Personal liability for responsible persons
• Business suspension
• License revocation
• Criminal liability for serious violations

Best Practices

• Conduct data mapping exercise
• Implement privacy by design
• Regular security assessments
• Incident response planning
• Vendor management