China’s government approved a controversial and broad new cybersecurity law aimed at tightening and centralizing state control over the internet, including the role foreign companies play in Chinese cyberspace.
The law, passed by the standing committee of China’s legislature and issued publicly Monday, tasks agencies and enterprises with improving their abilities to defend against network intrusions while demanding security reviews for equipment and data in strategic sectors.
Overseas critics of the law were quick to say that it threatens to shut out foreign technology companies from any sectors deemed “critical” by the Chinese Government, and includes contentious requirements for data to be stored on servers located in China.
This new law will have wide-ranging implications for cloud service companies, who will be forced to use or build facilities in China for their operations, or be shut out of the massive market.