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China has recently advanced a wave of policies
to tighten cybersecurity after former National Security Agency
contractor Edward Snowden disclosed that U.S. spy agencies
planted code in American tech exports to snoop on overseas
targets.
The standing committee of the National People's Congress (NPC),
China's legislature, reviewed a cyberspace "sovereignty" clause
in a proposed national security law, according to a draft posted
online this week after its second reading in late April.
"The state establishes national internet and information
security safeguard systems ... and protects national internet
space sovereignty, security and development interests," the
draft said.
The country must "achieve security and control in internet and
information core technology, key infrastructure, and important
data and information systems", it said, as well as strengthen
internet management and punish internet attacks.
It also said China's banking infrastructure must be strengthened
and its financial systems improved to withstand international
risks and shocks. It did not give specific guidelines for
implementation.
China's earlier attempts to regulate cybersecurity were most
clearly articulated in bank-technology guidelines and a proposed
counter-terrorism law, which called for the similar use of
"secure and controllable" technology that is developed in China
or source code that is released to Chinese inspectors.
China's banking regulator temporarily suspended the financial
industry rules after feedback from banks and an outcry from
foreign governments and business, which argued they were unfair
and motivated by protectionism.
But the foreign business community has said China could revive
the banking rules in some form.
In addition to the national security law, the controversial
anti-terrorism draft law is also still being reviewed by the NPC
standing committee, a group of about 200 members, which often
adopts laws after three readings.
President Xi Jinping, who heads a newly established national
security commission, has said China's security covers a wide
array of areas, including politics, culture, the military, the
economy, technology and the environment.
The sweeping national security law has broad implications for
the ruling Communist Party's governance of society, including
powers for dealing with "harmful moral standards".
(Reporting by Michael Martina; Editing by Alex Richardson)
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