New Chinese Cyber Law?

China has enacted a new law in which personal information collected or generated must be stored in China. Therefore, any foreign company working in China must have their information stored within China.

Such a policy creates a segregation within the world, in which information stored in China will be separated from the rest of the world. Furthermore, such a concept has an extreme impact on any multinational company doing any sort of work in China. Companies in general, are constantly sharing data across borders, and such a law will inhibit foreign companies from doing online business with China.

If this isn’t enough to make foreign companies second-guess themselves, the law itself is written in vague terms. The law, which states “critical information infrastructure” must be contained within China. However, this leads to extreme interpretation as to what this critical information is.

I believe this enactment of a law is a large step backwards with China and foreign businesses. China already does not like foreign businesses within China, as we see with Facebook and other websites that are, by and large, not allowed within China’s networks.

-Tim Zabel