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MoFo Partners Comment on New Development of Cybersecurity and E-commerce Rules in China

GC Agenda China

July 2018

Morrison & Foerster partners Paul McKenzie and Chuan Sun were interviewed by GC Agenda China on the new development of cybersecurity laws and e-commerce laws in China (subscription required).

“The draft rules appear to inherit the multi-level protection framework from the 2007 Administrative Measures for the Multi-Level Protection of Information Security and upgrade it for the 2016 Cybersecurity Law (CSL) regime,” said Mr. Sun on the rules on Cybersecurity Classification Protection (Draft to Solicit Comments) recently released by the Ministry of Public Security (MPS). “The draft provides a practical framework to clarify graded security obligations of network operators, a broadly and vaguely defined term that could cover a wide range of business entities. The higher security requirements for operators of networks of Level 3 or above appear to echo the requirements placed on operators of critical information infrastructure in the CSL.”

Mr. McKenzie also shared his optimism that e-commerce laws might soon come into effect when commenting on the Electronic Commerce Law of the People’s Republic of China (Draft for Third Review), released by the National People’s Congress Standing Committee. “Legislators are down to the short strokes with issuance of the third draft of the E-Commerce Law. The third draft further tightens the consumer protection provisions of the law, in some cases responding to comments on the second draft and in another reflecting the promulgation of the revised Anti-Unfair Competition Law. It is reasonable to expect the law to be finalized and promulgated soon, likely within the year.”

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