USCIB, Others Urge Delay of June 1 Implementation of Chinese Cybersecurity Law

The U.S. Council for International Business, Computer and Communications Industry Association and more than 50 other entities jointly urged the Chinese government Monday to delay its planned June 1 implementation of a cybersecurity law that includes data localization rules. Opponents claim the law has the potential to bar foreign-based tech firms from industries that China deems “critical,” and could increase China’s online censorship (see 1612080077 and 1703080067). “China’s current course risks compromising its legitimate security objectives (and may even weaken security) while burdening industry and undermining the foundation of China’s relations with its commercial partners,” the groups said in a letter to the Chinese Communist Party Central Leading Group for Cyberspace Affairs and other Chinese government entities, “Our organizations remain concerned that China’s current approach is leading to greater separation rather than integration among our economies.” The law also may “exacerbate troubling trends in markets around the world that move China away from cooperative trade and the benefits of global trade,” the groups said: Information and communication technology measures “should be narrowly tailored, reflect international norms, be non-discriminatory and consistent with WTO [World Trade Organization] agreements to which China is a party. In order to ensure compliance with international standards and best security practices, we further recommend that Chinese agencies consult and work closely with industry experts and other stakeholders throughout the regulatory and implementation process.”