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Business

Foreign firms ask China to rethink cyber laws

Opening sequence

Opening sequence

Business

Foreign firms ask China to rethink cyber laws

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COMING UP:Foreign firms ask China to rethink cyber laws

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00:00:02
>> China's plans to lock down its Internet are upsetting business. More than 40 foreign companies lobbying Beijing last week over a new planned cybersecurity law. They say the rules are too vague and target global business, a cause for invasive security reviews, and ensures data be kept within China's borders.
00:00:20
Reuters Michael Martinez says business groups worry that puts them at significant risk.>> They're worried about possible demands to hand over source code or other sensitive company data, potentially to the benefit of Chinese competitors. The business groups also say that a vague requirement for any China-related business data transferred outside of the country to first undergo security checks could have a huge impact on how they run their global operations.
00:00:46
For example, by creating information bottlenecks or requiring companies to even hive off their China business in some ways from their global operations.>> Beijing argues all countries have cybersecurity rules but business groups say this level of restriction is a global first and may isolate China from the world's digital economy, although that plea may fall on deaf ears.
00:01:10
>> Other recent controversial laws, for instance, a law in foreign NGOs operating in China have been adopted without significant revisions to elements considered problematic by the international community. But Beijing is adamant that it needs these cyber rules in the context of what it says is a growing threat to national security such as terrorism.
00:01:31
>> The new rules are another grievance on the pile for China's trade partners, from overcapacity in the steel sector to worries over Beijing's Made In China 2025 plan calling for more and more domestic parts in IT and robotics. A laundry list of complaints, even as Beijing hopes to talk trade at the G20 next month.