Compliance Management, Government Regulations, Network Security, Privacy

China’s controversial cybersecurity law goes into effect

China's new cybersecurity law went into effect on June 1, subjecting companies to stringent data privacy and protection guidelines, even as key questions linger around how it will be enforced, how easily businesses will be able to comply, and how much compliance will cost.

Among other stipulations, the Cybersecurity Law of the People's Republic of China requires that companies store data pertaining to Chinese citizens on domestic servers only. Companies that cite extenuating circumstances for harboring this data outside of China's borders will be subject to a security assessment. The law also instructs network operators to establish measures to prevent, track and respond to cybersecurity incidents.

In a report on, James Carder, vice president of cybersecurity firm LogRhythm, said that multinational firms will likely in the best position to comply, but "a lot of the small and medium sized companies may not be able to afford to put in the control that the Chinese government is asking for, and if they can't put in those controls, it may actually push them out of that country and that market." Carder also worries that the law may be too vague, according to an email sent to SC Media by a LogRhythm spokesperson.

Bradley Barth

As director of multimedia content strategy at CyberRisk Alliance, Bradley Barth develops content for online conferences, webcasts, podcasts video/multimedia projects — often serving as moderator or host. For nearly six years, he wrote and reported for SC Media as deputy editor and, before that, senior reporter. He was previously a program executive with the tech-focused PR firm Voxus. Past journalistic experience includes stints as business editor at Executive Technology, a staff writer at New York Sportscene and a freelance journalist covering travel and entertainment. In his spare time, Bradley also writes screenplays.

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