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On 27 December 2015, China's National People's Congress Standing Committee passed a new anti-terrorism law (the "Law") that creates a legal framework providing Chinese authorities with wide-ranging powers to compel the cooperation and assistance of technology firms in the country's war against terrorism. The Law came into effect on 1 January 2016.
The term "terrorism" has been defined in the Law to mean "propositions and actions that create social panic, endanger public safety, violate person and property, or coerce national organs or international organizations, through methods such violence, destruction, intimidation, so as to achieve their political, ideological, or other objectives".
While most of the Law deals with broad national security and counter-terrorism initiatives, it also imposes certain statutory restrictions and obligations on technology companies. Article 18 imposes a general obligation upon telecommunications operators and internet service providers to provide technical support and assistance to national security agencies engaged in the prevention and investigation of terrorist activities. Article 19 expands on this by requiring telecommunications operators and internet service providers to implement technical security systems to monitor and prevent the dissemination of any information with terrorist content, with any discovery of such information with terrorist content to be reported to the relevant government departments. Article 21 further requires all businesses to conduct identity verification checks on their clients before any services can be provided. Furthermore, the Law has provided punishment measures for failing to do so.
In response to the passing of this law, it would be prudent for technology firms who operate in the PRC to review their data security and encryption measures, and to consider how they might want to respond to any demands made of them by Chinese authorities in the exercise of their powers under the Law. While the true overall impact of the Law remains to be seen, the passing of this new law serves as a clear signal of the Chinese government’s desire to exercise greater oversight and control over the technological and informational networks within its territory, and is a signal that foreign businesses would do well to heed.
Click here to read our client update on the new Anti-Terrorism Law.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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Rajah & Tann Singapore LLP
Shanghai Representative Office
Unit 1905-1906, Shui On Plaza,
333 Huai Hai Middle Road,
Shanghai 200021 PRC
http://cn.rajahtann.com
Contacts: Chia Kim HuatPartnerD +65 62320464kim.huat.chia@rajahtann.comYang Lih ShyngPartnerD +86 21 6120 8818F +86 21 6120 8820lih.shyng.yang@rajahtann.comLinda QiaoHead, Shanghai OfficeD +86 21 6120 8818F +86 21 6120 8820linda.qiao@rajahtann.com| Rajah & Tann Asia is a network of legal practices based in Asia. |
Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client. |
This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
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