State control in China strengthened by anti-espionage law

China has significantly expanded its already extensive anti-espionage law by tightening state control over data and digital activities, which will bring additional legal risks for foreign companies, journalists and scholars trying to better understand Chinese politics or economics, Radio Free Europe (RFE/RL) media reports.

China’s parliament on Wednesday adopted a comprehensive change to the anti-espionage law, which, while expanding the definition of spying, will prohibit the transfer of any information related to national security, Reuters points out.

It is the first amendment to the 2014 counter-intelligence law and analysts say the changes, which will take effect on July 1, signal a tougher approach by President Xi Jinping as Beijing increasingly suspects Washington and its allies.

Under the amended law, all “documents, data, materials and objects related to national security and interests” are under the same protection as state secrets. However, as Reuters points out, the law does not define what falls under Chinese national security or interests.

It expands the definition of espionage to include cyber attacks against government agencies or critical information infrastructure.

The amendment will allow authorities conducting counterespionage investigations to access data, electronic equipment, information on personal property, as well as prevent someone from crossing the border.

By amending its anti-espionage laws, China has tightened state control over a wide range of data and digital activities and expanded its power to neutralise what it sees as threats, the Wall Street Journal said, adding that this increases risks for companies operating in the world’s second-largest economy.

Foreign company bosses say that expanding the scope and powers of the law could make everyday interactions become crimes against national security, underlining the increasingly hostile environment faced by many foreign companies in China.

Among the concerns of foreign bosses is that the amendment will allow authorities to inspect the facilities and electronic equipment of companies, as well as digital devices such as smartphones and laptops belonging to individuals suspected of spying.

The amended law also raises concerns that normal business activities, such as gathering information on local markets, competitors and business partners, could fall under the extended definition of spying.

According to the US newspaper, the change in the law broadens China’s already expansive definition of national security and gives leader Xi Jinping a range of new tools for his project of strengthening the country for a possible confrontation with Washington and its allies, while threatening to undermine the Communist Party leader’s efforts to attract foreign capital to revive economic growth.

Over the past decade, Xi has used national security as a major tool to govern China, encouraging officials to be more secretive and refusing access to data gathered by companies and analysts to gain insight into China’s politics and economy, the Wall Street Journal reports, adding that the change in the law will support these efforts.

Analysts warn that expanding the already broad anti-intelligence law could create additional legal risks or uncertainty for foreign companies, journalists and scholars, CNN reports.

In his 10 years in power, Chinese leader Xi has already introduced a number of measures to combat alleged threats inside and outside China and has sought to control the flow of information outside the country as part of a greater focus on national security.

Chinese experts estimate that the original 2014 law was already ambiguous and strong. Now that law has been expanded with, as CNN points out, a lack of clarity on what types of documents, data or materials could be considered important to national security, which will pose significant legal risks for scholars and companies trying to better understand China.

Analysts say the bill could address topics such as the origins of Covid, the actual number of deaths from the pandemic in China, and credible data on the Chinese economy./Danas/