Infosec concerns have led China’s government to apply closer scrutiny to Chinese companies that list and send data offshore, according to a document written by China’s State Council cabinet and the Communist Party’s General Secretary.

“For a long time, the low cost of illegal securities has plagued the development of the market,” states the [1]Opinions on Strictly Cracking Down on Illegal Securities Activities in Accordance with the Law document in state-sponsored [2]Xinhua News .

The document explains that new legislation will focus on cross-border data flows and management of sensitive data — particularly related to issuance and listing of overseas securities.

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Next year, Beijing plans to establish a judicial system, law enforcement capability and coordination mechanism to enforce the crackdown, and bring order to the capital market.

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By 2025, China aims to have “significantly improved judicial transparency, standardization and credibility of securities law enforcement,” among other lofty and vague goals. A coordinated working group to combat illegal activities is also proposed, but not assigned a timeline.

[6]America world’s sole cyber superpower, ten years ahead of China, says Brit think tank

[7]Huawei must learn from US tech success stories, says founder Ren Zhengfei

[8]China's latest online crackdown targets mean girl online fan clubs that turn toxic

The tougher stance on Chinese tech companies comes as no surprise, given Beijing’s [9]last-minute halt of a Shanghai IPO for Alibaba affiliate Ant Group in November 2020, and this week’s ban on ride hailing app [10]DiDi Chuxing just after the company’s US stock market debut.

A day after the Cyberspace Administration of China (CAC) action against DiDi Chuxing, the government internet regulator announced reviews of more apps that recently floated in the USA.

According to Xinhua , the China Securities Regulatory Commission handled 262 major cases between 2019 and 2020 — more than doubling its actions in the prior year.

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The government is expected to escalate penalties associated with regulatory issues incrementally, with what it refers to as a “multi-level accountability system” — comprised of administrative punishment, criminal accountability, civil compensation, and integrity supervision. ®

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[1] http://www.xinhuanet.com/2021-07/06/c_1127628384.htm

[2] http://www.xinhuanet.com/2021-07/07/c_1127628958.htm

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YOV7QNX1lI35ERHHODOxUAAAAJM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

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[6] https://www.theregister.com/2021/06/29/international_institute_for_strategic_studies_cyber_study/

[7] https://www.theregister.com/2021/06/28/huawei_ceo_ren_zhengfei_admires_usa/

[8] https://www.theregister.com/2021/06/16/china_cyberbullying_fan_quan_crackdown/

[9] https://www.theregister.com/2020/11/04/china_ant_ipo/

[10] https://www.theregister.com/2021/07/05/didi_the_ridesharing_platform_that/

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[12] https://whitepapers.theregister.com/