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China Planning Ten-Fold Increase in Some Cyber Law Fines

The country’s cyberspace regulator is looking impose harsher punishments for breaches of its data security laws


A sign above an office of the Cyberspace Administration of China (CAC) is seen in Beijing, China July 8, 2021. REUTERS/Thomas Peter
A sign above an office of the Cyberspace Administration of China in Beijing. Photo: Reuters

 

China’s cyberspace regulator has proposed ratcheting up fines for cybersecurity law violations, including hiking some up from 100,000 to 1 million yuan.

The regulator revealed a series of proposed amendments on Wednesday to the country’s cybersecurity laws, saying that it wanted to improve coordination with other new laws. 

The Cyberspace Administration of China (CAC) said, for example, that it wanted to introduce a penalty that would see operators which used products or services that had not undergone security reviews be fined up to an equivalent of 5% of their previous year’s revenue, or 10 times the amount they paid for the product. 

 

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It also said it wanted to raise the fines for some violations, from up to 100,000 yuan ($14,371) previously to one million yuan. The proposed amendments are open to public feedback until September 29, it added. 

China’s 2017 cybersecurity law marked the first major set of rules governing the storage and transfer of data of Chinese origin. 

The country over the past year has added laws on data security and personal information protection. 

The changes have impacted how companies in China operate and especially how they handle data such as user information. 

In July, the CAC said Chinese ride-hailing giant Didi Global had violated three major laws and fined it $1.2 billion.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

China Cybersecurity Regulator to Enforce New Data Rules

China Cybersecurity Police to Crack Down on Trolls, Fake Accounts

China Cybersecurity Rules Seen as Big Risk For Finance Firms

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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