The ramifications of a new cybersecurity law in China could spell trouble for countries that do business with it, on top of an already strained relationship with the United States.
The latest scuttlebutt in Washington is that the United States is considering leveling sanctions against China after a data hack in June exposed data belonging to millions of government workers. It is widely speculated that China was to blame for the hack.
This new security law has critics worried that it will further limit China’s already restrained online freedom by creating an economic environment that only promotes Chinese products, therefore barring foreign competition in the name of national security.
While the country’s decision mainly presents problems for the United States in terms of limiting its ability to do business in China, what the new legislation illustrates is how tightening security laws could present problems for capitalistic countries that rely on economic competition.
Part of the new Chinese standard could mean that all security technology in that country would have to meet requirements established by the government, according to the National Law Review. Companies in other countries, including in the United States, may produce technology uncooperative with Chinese standards.