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8 White Paper on the Business Environment in China

1.6 Digital Concerns

Background cyber-enabled theft of intellectual property, including
trade secrets or other confidential business information,
China now has 731 million Internet users, with the intent of providing competitive advantages to
one fifth of the world’s total, with 53.1 companies or commercial sectors; (3) to make common
percent of the population online. The number of Chinese effort to further identify and promote appropriate norms
Internet users reached 710 million in 2016 – one fifth of of state behavior in cyberspace within the international
the world’s total. Although China lags behind the US in community; (4) to maintain a high-level joint dialogue
terms of total connectivity, more Chinese go online using mechanism on fighting cybercrime and related issues;
mobile phones (90 percent versus 78 percent), according and (5) to enhance law enforcement communication on
to the Sept 28 2017 report. According to data from the cyber security incidents and to mutually provide timely
official China Internet Network Information Center, the responses. Both sides reiterated that all consensus and
2016 Internet users nearly doubled those online in 2009. cooperative documents achieved at the three rounds of
China’s mobile Internet users climbed to 695 million, the China-US High-Level Joint Dialogue on Combating
showing much stronger growth than the rate of overall Cyber Crimes and Related Issues since 2015 remain valid.
web users. While there’s still extensive usage of PCs Both sides intend to improve cooperation with each
and laptops, especially at workplaces and schools, 95.1 other on cybercrime, including sharing cybercrime-
percent of total Internet users access from mobile devices related leads and information, and responding to Mutual
– mainly phones. In other highlights: Legal Assistance requests, in a timely manner, including
with regard to cyber fraud (including business email
469 million mobile wallet users, up 31.2 percent in compromises), hacking crimes, abuse of internet for
the past year, as more people than ever turn to WeChat, terrorist purposes, and internet dissemination of child
Alipay, Apple Pay, and several other services for online pornography. Both sides will continue to cooperate on
and in-store payments; network protection, including maintaining and enhancing
cybersecurity information sharing, as well as considering
168 million people use ride-hailing apps such as Uber future efforts on cybersecurity of critical infrastructure.
and Didi; Both sides intend to maintain and make full use of the
established hotline mechanism for addressing urgent
WeChat remains the most used app, with 80 percent cybercrime and network protection issues pertaining to
of netizens frequenting the social network (Millward). significant cybersecurity incidents, and to communicate
in a timely way at the leadership level or working level, as
China strictly manages the Internet within its borders needed (Xinhua, Summary).
and has banned the spread of illegal information via
technical or other means. This embodies the country’s Cybersecurity
cyber sovereignty, according to authorities, and
requirement for safeguarding national security and The Cybersecurity Law that came into force on June 1,
protecting the interests of its citizens. First China- 2017 may have reflected China’s determination to secure
US Law Enforcement and Cybersecurity Dialogue its cyberspace and protect Chinese citizens against data
occurred October 2017. According to a summary theft, but some Western observers worried that the new law
published in China Daily, both sides will continue their targeted foreign enterprises by “restricting the cross-border
implementation of the consensus reached by the flow of information”, which could “give Chinese companies
Chinese and American Presidents in 2015 on China- an unfair advantage.” State run media claimed such worries
US cybersecurity cooperation, consisting of the five are uncalled for, as the ultimate aim of the new law was to
following points: (1) that timely responses should be safeguard China’s cyberspace sovereignty and security.
provided to requests for information and assistance
concerning malicious cyber activities; (2) that neither
country’s government will conduct or knowingly support

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