11-30-2019 On January 1, 2020 China's Cryptography Law becomes effective. After all these "cybersecurity" rules are in place no foreign company may encrypt data so that it cannot be read by the Chinese central government and the Communist Party of China. In other words businesses will be required to turn over encryption keys.
Companies will also be prohibited from employing virtual private networks to keep data secret, and some believe they will no longer be allowed to use private servers.
Beijing's system, once implemented, will be so invasive that Chinese authorities will no longer need to ask foreign businesses to turn over data. Chinese officials will simply be able to take that data on their own.
"Once data crosses the Chinese border on a network," writes Steve Dickinson in the China Law Blog, "100 percent of that data will be 100 percent available to the Chinese government and the CCP."
Beijing's complete visibility into the networks of foreign companies will have extremely disadvantageous consequences, Dickinson notes. First, Chinese officials will be permitted, under Chinese law, to share seized information with state enterprises. This means the enterprises will be able to use that information against their foreign competitors.
Second, China's new rules will almost certainly result in foreign companies losing trade secret protection around the world.
President Trump should use his emergency powers to prohibit American companies from complying with the new rules or from storing data in China….Because companies will no longer be permitted to encrypt data end-to-end, they will almost certainly be considered as violating U.S. rules for tech stored on a network in China….
In November the Missouri Republican Senator Josh Hawley introduced a bill, the National Security and Data Protection Act of 2019, prohibiting American companies from storing user data or encryption keys in China. Of course this bill faces opposition from tech companies doing business in China. The rationale for such a sweeping presidential order is that the American people have an interest in China not taking control of American companies with operations in China--a probable consequence of the application of the December 1 and January 1 measures.
Yet there is someone who can, with the stroke of a pen, effectively implement Hawley's bill. Such an emergency order would effectively force American companies out of China, yet it is China with its incredibly ambitious grab of data that is forcing the issue.
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-Gordon G. Chang https://www.gatestoneinstitute.org/15230/china-adopts-malicious-cybersecurity-rules?utm_source=wnd&utm_medium=wnd&utm_campaign=syndicated
is the author of The Coming Collapse of China and a Gatestone Institute Distinguished Senior Fellow. Follow him on Twitter @GordonGChang. ......................................
11-10-19 Even commercial cryptography can become subject to more onerous rules or requirements under the new law if the commercial cryptography involves state security, the national economy and people’s livelihoods, and/or the social public interest….
The Chinese law distinguishes between three types of cryptography: (1) core cryptography, (2) common cryptography and (3) commercial cryptography….Commercial cryptography, on the other hand, is for the protection of information not considered State secrets. It can be used by businesses and individuals to enhance the security of information that exists on, or is transmitted through, the internet….
Critical information infrastructure operators (CIIOs) will be required to seek assessment and approval by a government authority when procuring cryptography solutions in certain cases….Commercial cryptography products involving State security, national economy and people’s livelihood and social public interests will be included in the catalogue of critical network equipment and dedicated cybersecurity products. Such products cannot be sold until they have passed the testing and certification conducted by a “qualified agency.” https://www.digfingroup.com/china-crypto-law/
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