China tightens state secrets law in latest national security move |
China has revised and broadened its State Secrets Law (SSL) for the first time since 2010, as it aims to tighten procedures for protecting and restricting the disclosure of state secrets. The changes, which took effect on May 1, 2024, are part of China's efforts to expand and enforce national security-driven regulations. The Revised SSL creates challenges for foreign-invested companies operating in China, particularly in terms of data acquisition, management, use, and transfer. Cross-border transfers of data are subject to additional scrutiny and requirements. The definition of "state secrets" remains unchanged, allowing for broad interpretation and extensive government discretion. The Revised SSL introduces new articles that expand the scope of confidentiality obligations to all stakeholders, including non-state parties and foreign-invested companies. Chinese authorities are granted increased powers to conduct inspections and investigations. The Revised SSL also protects "work secrets" generated by state agencies and organizations. The changes pose challenges for due diligence, investigations, and compliance programs in China. They may also lead to increased enforcement actions and deter whistleblowers. |
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