China has accelerated its legal and strategic efforts to ensure data flow and protect clean cybersecurity. The Ministry of Industry and Information Technology (MIIT) recently announced a new cybersecurity strategy for the industrial network and introduced a “Cybersecurity Plan for Industrial Network”. This Industrial Cybersecurity Plan is designed to maximize data security within the nation and aims to effectively negate ‘major risks’ by the end of 2026. This initiative includes comprehensive measures to enhance industrial cybersecurity and address AI-related legal challenges, applying to more than 45,000 companies in the industrial sector and aiming to build digital power and clean cyberspace through the rule of law.

Keys of Industrial Cybersecurity Plan

In late February 2024, the MIIT announced a detailed plan to improve data security in the country’s industrial sector. The plan includes several key components aimed at mitigating major risks by 2026:

1. Emergency Drills: Simulating ransomware attacks to prepare companies for potential cyber threats.
2. Data Security Training: Providing extensive data security training for over 45,000 companies in the industrial sector, covering at least the top 10% in terms of revenue in every Chinese province.
3. Risk Self-Examination and Correction: Strengthening the ability of companies to self-examine and correct vulnerabilities.
4. Precise Management and Protective Measures: Adopting targeted management strategies and protective measures to address specific risk scenarios such as ransomware attacks, vulnerability backdoors, illegal operations by personnel, and uncontrolled remote operation and maintenance.

The MIIT has also set ambitious goals to complete 30,000 data security training sessions and cultivate 5,000 data security professionals by the end of 2026.

Legal Developments in AI and Data Protection

In addition to cybersecurity measures, China has made significant legal advancements in regulating AI and data protection. The Annual Report on Rule of Law in China, released by the Chinese Academy of Social Sciences’ Institute of Law, identified 2023 as a pivotal year in tightening supervision and advancing AI development. Key legislative steps taken last year include:

1. Temporary Regulation on AI Services: Issuing a regulation to manage AI-generated services.
2. Accelerated Legislative Process: Quickening the legislative process concerning AI application, personal information protection, and data flow.
3. Establishment of the National Data Bureau: A significant milestone in building digital power, promoting digital economic growth, and facilitating data use.

AI-Related Legal Rulings

Chinese courts have begun to address AI-related disputes by applying the current laws, balancing technological development with the protection of legitimate rights. A notable example from 2023 is the Beijing Internet Court’s ruling that recognized the copyright of an AI-generated image. This landmark decision sets standards and market rules for AI and sparked widespread public attention and discussion. The court emphasized that assigning legal status to generative AI content aims to encourage innovation and promote the emerging industry, while also stressing that future copyright disputes related to AI-generated content should be judged on a case-by-case basis.

Increased Protections Against Hacking

The MIIT’s plan to improve data security in China’s industrial sector comes amid heightened cyber tensions between China and the United States, with both countries frequently accusing each other of cyberattacks and industrial espionage. In response to these threats, China has taken significant steps to replace Western-made hardware and software with domestic alternatives. The Ministry of State Security has also warned that foreign geographic information software is being used to collect sensitive data in key sectors, including the military, highlighting national security concerns related to data storage and transfer.

Summary

China’s multifaceted approach to enhancing cybersecurity and regulating AI reflects its commitment to building an advanced digital infrastructure. The combination of legislative measures, industry-specific security plans, and judicial rulings aims to create a safer and more controlled cyberspace, fostering both technological innovation and data security. This comprehensive strategy underscores China’s determination to promote digital economic growth and ensure national security in the digital age.

For further details, please refer to the official announcements and reports from the Chinese Ministry of Industry and Information Technology and the Chinese Academy of Social Sciences’ Institute of Law. Always be prepared about Cybersecurity attacks and spread awareness. If you’re looking to secure your business network & cybersecurity against attacks, contact us today to get free-quote and consultation from our top-rated cyber experts.