Clarification needed as China’s secrets law is being revised
- Foreign businesses in China are concerned about crossing ‘red lines’, so the onus is on the central government to clearly explain the dos and don’ts
Worried foreign investors and companies operating in China are finally learning more about Beijing’s plans to revise the state secrets law, a bid to reaffirm the Communist Party’s control over information security and improve how state secrets are managed.
The move had been widely anticipated and is not unlike efforts afoot in many nations at a time of fast-changing geopolitical realities.
However, Beijing would be wise to quickly define red lines to avoid pushing away international businesspeople who fear making missteps that could land them in trouble.
The sweeping changes are happening as Beijing is locked in an intelligence war with Washington and its allies.
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President Xi Jinping earlier this year highlighted China’s “more complex” security concerns, urging officials to prepare for “worst-case and most extreme scenarios”. State Security Minister Chen Yixin has also called for a crackdown on the theft of state secrets.
Top lawmakers in the National People’s Congress had their first reading this week of the draft of what is described as the first major update to the state secrets law since 2010 and only the second revision since its introduction in 1988.
Details made public last Wednesday indicated that there were plans for a dozen new clauses and an expansion of the depth and reach of control over areas ranging from education, technology and internet use to military facilities.
One provision would ban Chinese state employees with access to classified information from travelling overseas without prior approval – even for a period after they leave or retire from the job. The law does not clearly define who is regarded as an employee involved with state secrets.
Legal experts said ambiguities surrounding the definitions of terms such as “state secrets”, “national security” and “national interests” could mean that interpretation would be left up to those enforcing the law. Foreign firms may also face conflicting obligations in China and their home jurisdictions.
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Foreign analysts doing market research, including those who have also run afoul of authorities in the recent past, have cause for concern.
The experts said corporate due diligence and other measures that aim to make global corporate activities more transparent could also conflict with tightened control over data and information flows.
The Ministry of State Security has said criticism of China’s anti-spying law was misguided. National security is understandably a top policy priority, but international trade is also essential.
The security law changes are coming. Authorities should do what they can to help the global business community navigate trade with China by helping them understand the new rules of the road.
