A new border control for cyber is to be introduced in China for businesses. Data will be subject to cumbersome regulations including keeping data in China. Any data that leaves China will be subject to scrutiny before it leaves the border. Whilst within China the Government will have the freedom to access business data including source codes. This may make many foreign businesses think twice about investing there and those already committed may look to exit or even downsize.
No doubt other countries will be keeping a close eye on this with their ink at the ready for similar laws.
according to a copy of a letter seen by Reuters, urging China to revise draft cyber rules they believe are vague and discriminate against foreign enterprises.The groups say the pending rules, including a cyber security law that could be passed this year, include provisions for invasive government security reviews and onerous requirements to keep data in China.They say the regulations would impede China's economic growth, create barriers to market entry and impair the country's security by isolating it technologically. The ministry, in a faxed statement to Reuters late on Tuesday night, said the law will not be used to "carry out differential treatment and will not create obstacles and barriers for international trade and foreign businesses investing in China." It said companies would be able to transfer data required for business purposes outside China's borders after passing a security evaluation.