Page 11 - The South China Business Journal
P. 11
work infrastructure, IP address, bandwidth and pending and the Chinese regulators are willing to
other network access resources. It also included a communicate and learn, he strongly recommended
comprehensive self-examination, which aims to rectify that the business community join various lobbying
the four types of problems, such as “illegal to carry out initiatives organized by the respective foreign chambers
cross-border business issues.” In other words, without of commerce, including Amcham, to play a proactive
approval from major telecommunication offices, any role in the legislation process. On the other hand, the
self-constructed or leased lines will be prohibited from general enforcement trend earlier this year already
participating in trans-border business operations, thus, indicated increasing risks for companies to stay
VPNs are used as an example. The three-state owned compliant with the new law. It is a real task which
primary telecommunication enterprises and secondary companies will need to be prepared to manage.
ISP providers, which provide international lines, needs
to establish user files and make clear to the user that Therefore, we recommended companies to take
services are only for communication among departments immediately put together dedicated resources to
within the same company and kept domestically in revisit their current business set up and evaluate
China. In summary, the regulation requires all network weak points in their operation (e.g. use of VPN, data
access services to be registered with the government for export, supply chain management). Hardware security
inspection. Furthermore, “Sub-leasing or transferring” is is one aspect. The more critical aspect will be various
prohibited, IDC license holders are not allowed to provide protocols and procedures managing related risks
qualifications or resources to any unlicensed enterprise for which professional support both internally and
in the name of technical cooperation. The new CSL will externally will be needed. Regardless of the fact that
have a profound impact on foreign companies operating the CSL could indeed bring some new burdens for all
in China. Dr. Michael Tan analyzed the main content of companies operating on the ground, Dr. Tan stressed
the CSL as well as the general implications that will affect that the Chinese market is still a very promising one
foreign companies. which companies should not ignore. As a rule, and
generally speaking, Dr. Tan recommends staying
According to Dr. Tan2, raising awareness is the first proactive and embracing the new challenges as the
important step to take, which shall not only be the best approach for businesses.■
responsibility of the IT and legal departments but will
also require top management providing the necessary CN Care Cyber Cloud Ltd.
resources to address the new challenges brought on
by the CSL. Since many implementation rules are still B4-B6, 15/F, Block B
Nanfang Securities Building
2 Source: Dr. Michael Tan, Partner, SHIAC Arbitrator, TaylorWessing No. 2016 Jianshe Road
Shanghai, China Luohu District, Shenzhen
other network access resources. It also included a communicate and learn, he strongly recommended
comprehensive self-examination, which aims to rectify that the business community join various lobbying
the four types of problems, such as “illegal to carry out initiatives organized by the respective foreign chambers
cross-border business issues.” In other words, without of commerce, including Amcham, to play a proactive
approval from major telecommunication offices, any role in the legislation process. On the other hand, the
self-constructed or leased lines will be prohibited from general enforcement trend earlier this year already
participating in trans-border business operations, thus, indicated increasing risks for companies to stay
VPNs are used as an example. The three-state owned compliant with the new law. It is a real task which
primary telecommunication enterprises and secondary companies will need to be prepared to manage.
ISP providers, which provide international lines, needs
to establish user files and make clear to the user that Therefore, we recommended companies to take
services are only for communication among departments immediately put together dedicated resources to
within the same company and kept domestically in revisit their current business set up and evaluate
China. In summary, the regulation requires all network weak points in their operation (e.g. use of VPN, data
access services to be registered with the government for export, supply chain management). Hardware security
inspection. Furthermore, “Sub-leasing or transferring” is is one aspect. The more critical aspect will be various
prohibited, IDC license holders are not allowed to provide protocols and procedures managing related risks
qualifications or resources to any unlicensed enterprise for which professional support both internally and
in the name of technical cooperation. The new CSL will externally will be needed. Regardless of the fact that
have a profound impact on foreign companies operating the CSL could indeed bring some new burdens for all
in China. Dr. Michael Tan analyzed the main content of companies operating on the ground, Dr. Tan stressed
the CSL as well as the general implications that will affect that the Chinese market is still a very promising one
foreign companies. which companies should not ignore. As a rule, and
generally speaking, Dr. Tan recommends staying
According to Dr. Tan2, raising awareness is the first proactive and embracing the new challenges as the
important step to take, which shall not only be the best approach for businesses.■
responsibility of the IT and legal departments but will
also require top management providing the necessary CN Care Cyber Cloud Ltd.
resources to address the new challenges brought on
by the CSL. Since many implementation rules are still B4-B6, 15/F, Block B
Nanfang Securities Building
2 Source: Dr. Michael Tan, Partner, SHIAC Arbitrator, TaylorWessing No. 2016 Jianshe Road
Shanghai, China Luohu District, Shenzhen
