The impact of China's 2016 Cyber Security Law on foreign technology firms, and on China's big data and Smart City dreams

Chinese officials are increasingly turning to a policy known as Informatisation, connecting industry online, to utilise technology to improve efficiency and tackle economic developmental problems in China. However, various recent laws have made foreign technology firms uneasy about perceptions of Rule of Law in China. Will these new laws, under China's stated policy of “Network Sovereignty” (“网络主权” “wangluo zhuquan”) affect China's ability to attract foreign technology firms, talent and importantly technology transfers? Will they slow China's technology and Smart City drive? This paper focuses on the question of whether international fears of China's new Cyber Security Law are justified. In Parts I and II, the paper analyses why China needs a cyber security regime. In Parts III and IV it examines the law itself.