China doubles down on national security, expanding its state secrets law

From CNBC:

China is expanding protections for state secrets to include work secrets, sparking concerns about potential overreach and lack of clarity for foreign businesses. The updated law aims to increase national security measures as China tightens restrictions, raising concerns for businesses operating in the country.

The new rules define work secrets as information that could have an adverse impact if leaked, a broad category that could lead to potential liability for individuals. While China regularly discloses some information, opacity in policies and enforcement raises challenges for foreign businesses navigating the regulatory environment.

The state secrets law designates information that could harm China’s security and interests across various fields, imposing restrictions on overseas travel for those working with state secrets. Concerns remain over the lack of clarity on what constitutes important data subject to export restrictions for foreign businesses.

The updates to the state secrets law have been under discussion for months, aimed at better protecting national sovereignty, security, and development interests. While the revisions provide some clarity and updates for new technology, questions remain over the potential impact on foreign businesses and operations in China.



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