An Overview of People’s Republic of China’s Cybersecurity Law

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 are subject to corresponding responsibilities and obligations.


The Cybersecurity Law of the People’s Republic of China was adopted at the 24th Session of the Standing Committee of the 12th National People’s Congress on 7 November, with 154 affirmative votes and one abstention. The Cybersecurity Law will come into effect on 1 June 2017.


Scope of China’s Cybersecurity Law

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 Cybersecurity Law is applicable to network operators and businesses in critical sectors. The law requires network operators to cooperate with Chinese crime or security investigators and allow full access to data and unspecified “technical support” to the authorities upon request. The law also imposes mandatory testing and certification of computer equipment for critical sector network operators.

Penalties for Violating Cybersecurity law of China
Under the criminal law Peoples’ Republic of China, cybercrimes are mainly provided in the section: “Crimes of Disturbing Public Order”. Articles 285, 286, and 287 are the three major articles that directly relate to cybercrime. The punishment for violating articles 285, 286, and 287 include imprisonment, detention, and fines. An offender if convicted guilty may have to serve imprisonment up to seven years for illegally obtaining data from a computer.


According to Article 5: 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.

How does the Cybersecurity Law apply to businesses?

The “cybersecurity” in the Cybersecurity Law should be understood in the broad sense. The Chinese cybersecurity law includes a whole range of other domain including:

  • Information Security
  • Control System Security
  • Computer Security
  • Communication Security
  • Automation


It is to be noted precisely that the businesses affected by the Cybersecurity Law are not limited to those in the information technology (IT) industry.


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Explaining China’s Real Estate Law

With China’s rapidly expanding economy there is an increased need for residential housing, commercial space, and industrial parks that are structured to meet the unique requirements of the Chinese population. Real estate has been one of the few brightest spots in China’s investment landscape as the government clampdown is not as aggressive as it used to be even a few years ago.


Sectors such as large-scale theme park construction, lithium mining, credit rating services, precious metals, and internet access services that are previously restricted are now opened up to the foreign capital. In manufacturing, foreign companies are allowed to produce their own rail transport facilities, instead of having to set up joint ventures with local firms. Rules were also eased for foreign companies manufacturing electric vehicles and related products.


Laws on Real Property in Urban Areas

In addition to the Property Rights Law, China regulates real property through a series of other laws and regulations, including the PRC Law on Land Management, the Land Registration Measures, the Interim  Regulations Concerning the Assignment and Transfer of the Right to  Use State-Owned Land in Urban Areas (Assignment  Regulations), and the PRC Law on the Administration of Urban Real Estate (Urban Real  Estate Law). Among these laws and regulations, the Assignment Regulations and the Urban Real Estate Law primarily regulate land-use rights and ownership of residential property in urban areas.


Since the real estate industry works as the reservoir for the sedimentary capital of bank loans, the stabilization of real estate prices will reduce the financial systemic risks markedly.


Granting of the Land-use Right


Article 7– Granting of the land-use right refers to acts that the State grants land users the right to use the State-owned land (hereinafter referred to as the land-use right) for a certain number of years and the users shall pay the State a granting fee for the land-use right.


Article 8– The land-use right for the collective-owned land within a planned urban district may be granted with payment only after it is requisitioned in accordance with the law and turned into State-owned land.


Article 9– Granting of the land-use right must conform to the overall planning for land utilization, urban planning and the annual plan for land to be used for construction.


Article 10– Where the local people’s governments at or above the county level grant land-use right for the development of the real estate, they must, based on the quota set by the people’s governments at or above the provincial level, draw up plans for the total area for annual granting of the land-use right, which shall, according to the regulations of the State Council,  be reported to the State Council or the provincial people’s government for approval.


Article 11– Granting of the land-use right shall be carried out by the people’s governments of the cities or counties in a planned and step-by-step way. With regard to each lot granted, plans for its purposes, term of use, and other conditions shall be worked out by the departments of land administration under the people’s governments of the cities and counties in conjunction with the competent departments of urban planning, construction and housing administration. Such plans shall, according to the regulations of the State Council, be implemented by the departments of land administration under the people’s governments of the cities or counties after their submission to and approval by the people’s governments with due authority for approval.

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