(Bloomberg) – China’s new data security regime gives President Xi Jinping the power to shut down or refine tech companies to take control of huge amounts of data held by tech giants like Alibaba Group Holding Ltd. and Tencent Holdings Ltd.
Firms that have found improper handling of “state core data” can be forced to cease operations, revoke operating licenses, or fined up to 10 million yuan ($ 1.6 million), according to a top-level report on Thursday legislative body of the Asian nation can impose passed law.
Corporations disclosing sensitive information overseas can face similar fines and penalties, and those who disclose information to foreign law enforcement agencies without permission can face fines of up to 5 million yuan and business suspensions under the law posted on the National’s website reckon People’s Congress.
Key decisions related to data security are made by central national security officers. The law comes into force on September 1st.
Xi’s government is in control of …