HeatherZouHeatherZou ・ Sep. 16, 2022
China to Increase Cybersecurity Fines Up to 5% of Annual Turnover
The proposed fine to be imposed on enterprises has increased from a maximum of 1 million yuan ($0.14 million)to 50 million yuan ($7 million) or 5% of the revenue in the previous year, according to the revised law.

Image Source : China Visual

Image Source : China Visual

BEIJING, Sep 15 (TMTPOST) – China's internet regulators proposed a series of amendments to the country's Cybersecurity Law which has been in force for more than five years, including raising the size of fines for some violations. 

On Wednesday, the Cyberspace Administration of China (CAC) requested public comments on the revision of the Cybersecurity Law. The proposed revisions highlight adjusting the types and amount of administrative penalties for violations endangering network operation security and strengthening the responsibility of key information infrastructure operators.

The CAC intended to introduce a penalty that would see operators of critical information infrastructure who used products or services that had not undergone security reviews be fined up to 5% of the annual turnover.

The draft decision stated that network operators, network products, or service providers violating the provisions and infringing upon individuals' right to protection of information will be punished in accordance with the relevant laws and administrative regulations. Those who refuse to make corrections or result in bad consequences will be given a fine of 1 million yuan ($0.14 million) and be required to suspend the relevant business, and revoke the relevant business license.

China's cybersecurity law which entered into force in 2017, marks an important milestone in China's efforts to set strict guidelines on cyber governance of the storage and transfer of data of Chinese origin. It prohibits individuals and organizations from infringing others' reputations, privacy, intellectual property rights, and other lawful rights and interests by using the internet. It also guides network operators to strengthen their management of information posted by users.

The changes have impacted the way companies in China operate and especially how they handle data such as users' information.

The draft also aims to improve the legal liability systems of network information security and personal information protection.

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