Understand the Important Aspects of China’s Cybersecurity Law

In November 2016, the National People’s Congress initially passed the Cybersecurity Law. Penalties for violating the Law are clearly stated and include the suspension of business activities. Serious illegal action may lead to the closing of businesses or the revocation of licenses.

China Contract

The Cyberspace Administration of China released Measures for the Security Assessment of Personal Information and Critical Data Leaving the Country, intended to assist in the implementation of China’s new Cybersecurity Law. On November 2016, the National People’s Congress initially passed the Cybersecurity Law. The law is the latest step in China’s long-term campaign for jurisdictional control over the content on the internet.

Some of the key aspects of China’s cybersecurity law

  • The law brought enormous reforms in data management
  • Monitors internet usage regulations in China
  • Imposes new requirements for network and system security

 

 

According to the China Briefing, cybersecurity Law defines network operators as network owners, managers, and network service providers. In fact, nowadays, the vast majority of enterprises employing networks are in line with the definition of network operators, and therefore is subject to corresponding responsibilities and obligations. It is safe to assume that any company (regardless of size and domestic or multinational extent) operating its network – including websites and internal and external networks – to conduct business, provide a service or collect data in China could very likely be in scope.

 

The rules could affect purchases of server equipment, mass storage devices, cloud computing services, and large-scale databases, among others. There is no clear definition of which companies could be classified as critical information infrastructure operators, though they broadly include firms involved in the finance, energy, transportation, and telecommunications industries or those that handle large amounts of personal data.

Penalties of breaking China’s cybersecurity law-

  1. Penalties for violating the Law are clearly stated and include the suspension of business activities.
  2. Serious illegal action may lead to the closing of businesses or the revocation of licenses.

 

  1. The maximum fine may reach RMB1,000,000

 

Zhang Dejiang, chairman of the standing committee of the NPC declared that China had “a solid legal foundation for accelerating the establishment of a national security system and taking a distinctly Chinese approach to national security.” This was seen by many in the West as a strong rebuttal of the criticism of China’s counter-terrorism law and the draft laws on cybersecurity and management of NGOs.

Local governments are made responsible for data security in their respective regions. According to the Article 5 of the law, the State takes measures for monitoring, preventing, and handling cybersecurity risks and threats arising both within and without the mainland territory of the People’s Republic of China. The State protects critical information infrastructure against attacks, intrusions, interference, and destruction; the State punishes unlawful and criminal cyber activities in accordance with the law, preserving the security and order of cyberspace.

 

Share with friends:

China’s Proactive Employment Law Foreign Employers Must Understand

A foreign employer must follow all the legal responsibilities stated in the China employment law. It is a piece of golden advice to all foreign employers to keep an experienced China attorney by their side all the time for proper understanding and compliance with China employment law.

China’s Patent Law

China has a proactive employment policy to make sure the unemployment rate is within a socially tolerable range. From hiring to termination, China’s employment law covers everything. Foreign companies need to understand the Chinese employment law thoroughly before taking on any decisions regarding their China employee.

China employment law basically involves the following areas

  • Employment Contracts
  • Remuneration or Salary
  • Workplace Safety
  • Procedures for Negotiations
  • Labor Disputes
  • Working Hours
  • Protection from Discrimination
  • Compensation or Wage Regulations
  • Training
  • Social Insurance

 

On February 7, 2020, the PRC Ministry of Human Resources and Social Security has issued the Opinions on Stabilizing Employment Relationship during the Period for Prevention and Control of the Novel Coronavirus-infected Pneumonia Epidemic to Support Enterprises in Resuming Work and Production (the “Opinions”). Local regulators have issued various similar notices in this regard in Shanghai and Guangdong provinces. A foreign employer must follow all the legal responsibilities stated in the China employment law. The two China employment laws that all foreign investors must consider before commencing a business in the country are:

 

  • 1995 Labor Law of the People’s Republic of China
  • 2008 Labor Contract Law of the People’s Republic of China

 

Few key points of China employment law

  • In China, labor relationships may be reinstated even after termination– employers may be forced to re-hire terminated employees.
  • The Chinese labor law is primarily based on employment contracts. Oral assurance and offer letters are not valid documents to establish labor relationships.
  • The severance pay structure in China is quite peculiar. Sometimes a senior manager’s severance cost is lower than a junior employee’s.
  • PRC lifts restrictions on wholly foreign-owned HR service companies and the Ministry of Human Resources and Social Security issues notice on electronic employment contracts.
  • China takes steps to reduce employers’ contributions to disabled persons’ protection funds and Guangzhou issues guiding opinions on employment disputes.

 

In spite of not being willing to violate China’s overtime laws, many foreign companies frequently break it largely because the China labor laws are incredibly complicated and most English language translations of them are woefully inadequate. Appointing a trusted China business lawyer can solve this problem. It is a piece of golden advice to all foreign employers to keep an experienced China attorney by their side all the time.

 

Share with friends: