IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jun 2017 | Removal date: open ended
Still in force

Local operations

On June 1st, 2017, a new 'PRC Network Security Law' that was mooted in 2016 and approved that November, came into effect. The law is far-reaching; targeting the 'critical information infrastructure' of the following industries:

  • public communications and information services
  • energy
  • finance
  • transportation
  • water conservation
  • public services
  • e-governance

The law states, among other things, that any personal information 'generated or collected' by the information infrastructure in the abovementioned industries must be stored domestically. Any information that needs to be transferred overseas can only be done so with government approval.

Another clause in the text of the bill necessitates the use of PRC government-approved 'network equipment and cybersecurity products' when carrying out their business operations.

In effect, this means any firms deemed to be involved in one of the affected industries must conduct their data-related operations within the PRC and must do so with specific equipment.

This aspect of the law appears to derive from a 2015 law (see related measure) passed to combat 'terrorism' in the PRC. However, this differs in being more specific in which industries are targeted, not mentioning anything about the provision of encryption keys, and having more total clauses (which do not specifically affect international bodies, so are not detailed here).

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

641 Local transport & sightseeing services for passengers
642 Long-distance transport services of passengers
651 Land transport services of freight
652 Water transport services of freight
653 Air & space transport services of freight
691 Electricity & gas distribution (on own account)
692 Water distribution (on own account)
841 Telephony & other telecommunications services
842 Internet telecommunications services
843 On-line content
844 News agency services
845 Library & archive services
846 Broadcasting, programming & programme distribution services
911 Administrative services of the government
912 Public administrative services
913 Administrative social security services
921 Pre-primary education services
922 Primary education services
923 Secondary education services
924 Post-secondary non-tertiary education services
925 Tertiary education services
929 Other education & training services
931 Human health services
932 Residential care services for the elderly & disabled
933 Other social services with accommodation
934 Social services without accommodation
935 Other social services without accommodation
941 Sewerage, sewage treatment & septic tank cleaning services
942 Waste collection services
943 Waste treatment & disposal services
944 Remediation services
945 Sanitation & similar services
949 Other environmental protection services n.e.c.
951 Services furnished by employers & professional organizations
952 Services furnished by trade unions
959 Services furnished by other membership organizations
961 Audiovisual & related services
962 Performing arts & other live entertainment event presentation
963 Services of performing & other artists
964 Museum & preservation services
965 Sports & recreational sports services
966 Services of athletes & related support services
969 Other amusement & recreational services
971 Washing, cleaning & dyeing services
972 Beauty & physical well-being services
973 Funeral, cremation & undertaking services
979 Other miscellaneous services
980 Domestic services
990 Services provided by extraterritorial organizations & bodies

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