China’s New Cybersecurity Law Goes in Effect June 1st, 2017: what to expect and how to comply?

China's cybersecurity lawChina’s Cybersecurity law goes into effect June 1st, 2017. The law is aimed to tighten and centralize control over information flows in China. New restrictions raise a lot of concern among foreign companies that operate in the mainland.

As commented by the authorities, the law is imposed to improve security of the digital space and protect citizens from online frauds. One of the central requirements is data localization. In other words, all businesses that operate in the Chinese market must store the data inside of China. The following requirement could be one of the major concerns for the companies as many of them collect data on customers through operating various digital channels. To operate in the market after June 1st, 2017 companies will need Chinese domain, ICP and business license to comply with the law.

It can look like new cybersecurity law will drive a number of companies out of the market due to their decision not to comply with the new restrictions. But Joseph Cooke, the President of Web Presence In China mentioned, that “the Chinese market is too big and holds too many opportunities to be ignored.” Thus, many companies will search for ways to stay and continue operating in China.

In the meantime, all the businesses that run regular websites, e-commerce platforms or apps that scrapes any customer data in China, have to review their data privacy and cybersecurity policies to comply with the upcoming law. As for Web Presence In China, “The new law will not be a problem for us, or any of our clients as all of our operations and information are based and stored inside of China”  said Joseph Cooke, “moreover, none of our clients will have any issues since all of our software and CRM comply with the legal standards.”

Until the new Cybersecurity Law, Chinese legal regulations relating to cybersecurity were spread across many legal restrictions. The new law will be the first one to specifically regulate the digital space security. “Undoubtedly, Cybersecurity Law will greatly influence businesses that operate in China” added Cooke.

Beijing-based Web Presence In China (WPIC) is an independent, full service digital marketing and IT development agency. WPIC helps businesses setup and manage WeChat online stores. Having over 13 years of on the ground experience in the China digital sector, the firm has worked with over 300 global companies and leads a team of 120 people between their global offices. WPIC supports China and the greater APAC region in digital and IT solutions.