With China’s new cybersecurity law taking effect in 2017, companies will need to balance the benefits of access to the Chinese market with the potential costs of complying with this legislation, says an article in Fortune. “U.S. companies have already begun to strongly lobby against the law, as well as China’s position that the Internet must be managed by authorities,” writes Georges Haour. While focused on addressing issues around hacking, the law will also require foreign companies to provide detailed information regarding their network s and software, potentially causing security risks and threats to trade secrets. Concerns have also been raised with respect to the law potentially stifling innovation, by excluding non-Chinese firms from the market and preventing competition.
Seen as a deliberate attempt to further harden government control over the Internet within China, the law is expected to be the target of continued lobbying against its implementation by American and other foreign firms, according to the article. Ultimately, companies will have to decide whether the risks of compliance are worth the potential gains.
Source:
http://fortune.com/2016/12/01/china-cybersecurity-law-business/
