Practical Implications of China’s New Cybersecurity Inspection Regulation

Does compliance with China’s new Regulation on the Internet Security Supervision and Inspection by Public Security Organs heighten the risk of exposing sensitive data to third parties and disruption of network systems? The Regulation, which took effect on November 1, 2018, also raises concerns about more intrusive state action in the cybersecurity space – it has expanded the authority of the Public Security Bureau to perform cybersecurity inspections of internet-related businesses operating in China. In this guest article, Reed Smith attorneys Xiaoyan Zhang and Vincent James (Jim) Barbuto discuss some of the Regulation’s practical implications and risk mitigation strategies that should be considered by entities covered by it. See “China Establishes Certification Scheme for Mobile App Operators” (Apr. 17, 2019).

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