Data Security Law

Classification System

Categorization of information according to its impact on national security allows for a tiered approach to regulation and enforcement. The data security law mandates the creation of catalogs that identify core data and important data within specific industries and regions. Core data is defined as information that affects national security, the economy, or the public interest at a fundamental level.

Important data sits just below this level but still requires enhanced protection and strict export controls. Organizations are responsible for identifying where their own data fits within these categories based on the guidelines issued by their sectoral regulators. This classification ensures that resources are focused on protecting the most sensitive information while allowing less risky data to flow more freely.

Misclassifying data can lead to serious legal consequences, including the suspension of business operations or the revocation of permits.

Processing Obligation

Entities involved in the handling of information must follow strict procedural rules to ensure the integrity and availability of the data they manage. The data security law requires every processor to designate a person responsible for security and to establish an internal department to oversee compliance. They must conduct regular training for employees and implement technical measures such as encryption and access controls.

When a data breach occurs, the processor must immediately notify the affected individuals and report the incident to the relevant government authorities. The law also places a burden on the organization to verify the legitimacy of the sources from which they collect information. This requirement prevents the use of illegally obtained data and promotes a more transparent and ethical data market.

For manufacturing firms, this means that data related to production processes, supply chain logistics and customer specifications must be handled with a high degree of technical care.

Security Review

Exporting sensitive information to foreign jurisdictions triggers a formal evaluation process to determine the potential risk to national interests. The data security law establishes a mechanism for reviewing the export of important data and core data to ensure that it does not fall into the hands of hostile entities. This review considers the nature of the data, the purpose of the transfer and the security environment of the recipient country.

Organizations must submit a detailed report to the cyberspace authorities before any such transfer can take place. The law also prohibits the provision of data to foreign judicial or law enforcement agencies without the prior approval of the domestic government. This restriction ensures that the state maintains control over how national information is used in international legal disputes.

Failure to comply with these export rules can result in heavy fines and the blacklisting of the company from future data processing activities. Every international transfer must be justified by a clear business necessity and backed by a thorough risk assessment.