Sam Sacks (2018) CSIS: Beijing’s Cyber Governance System
A matrix of national strategies, laws, measures, regulations, and standards together make up China’s vision to become a “cyber superpower” and build a robust ICT governance system. These elements are mutually reinforcing, and lay out requirements that cover data transfer, data privacy, critical information infrastructure, internet content, and ICT industrial development.
The build-out of China’s ICT governance system has implications both for U.S. companies operating in China, as well as for Chinese investment flowing into the United States and globally. For U.S. companies, regulatory uncertainties and costs for operating in China are rising, compelling many to reassess the tradeoffs required to be in China. At the same time, there are major national security and trade implications for the global expansion of Chinese firms and capital in ICT sectors. As this system takes shape, understanding the overall framework as well as its individual elements will be key for U.S. policymakers. Some parts are final, but many are
still pending as stakeholders within the Chinese bureaucracy continue to debate their scope and implementation.
Understanding China’s emerging cyber regulatory system will be critical in order to craft a precise and targeted U.S. policy response as U.S.-China trade risks grow. Calibrating the right approach to the challenges posed by China must begin with an accurate view of this complex system, one that is often misunderstood by outside observers.
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