The Chinese Government has issued guidelines for the development of the data security sector. The goal is to increase the use of data for economic growth and improve control over data access and storage. The ultimate goal is to economically harness the potential of the vast amounts of data generated by the digital economy while guaranteeing national security. The guidelines call for the data security industry’s revenue to increase by 30% each year.
To achieve breakthroughs in key technologies and products, the Chinese government plans to establish five data security laboratories at the provincial and state levels. It also plans to establish five national data security industrial parks and develop several “small giants” – smaller companies with specialized products and deep data protection expertise that can compete on a global scale. Over the next three years, at least eight applicable use cases are expected to emerge in key industries such as telecommunications, transportation, and finance and healthcare. By 2035, China’s data security sector is expected to enter a dynamic phase to be able to strengthen the country’s digital economy.
While Beijing is pushing for increased use of data to drive economic growth, the country is also tightening controls on data access and storage. The Data Security Law, which took effect in September 2021, stipulates that some domestically generated information be treated as a matter of national security and requires all government agencies to monitor data security in their areas. To this aim, a number of regulations, including the Data Security Law, the Personal Information Protection Law and the Export Control Law, have been issued on the export of Chinese data.