The protection of state secrets is now a key area of technological development and national security strategy.

By The Strait Times

Summary

China has revealed details of a revised state secrets law that changes curbs on government officials’ handling of confidential information, banning those entrusted with state secrets from going abroad without approval. Chinese officials responsible for the regulations see them as part of Beijing’s efforts to defend its national interests at a time of increasing competition with the West in areas of science and technology.

The overhaul of the state secrets law has heightened concerns among foreign businesses operating in China. An expanded definition of what constitutes sensitive information could restrict access to digital data and hinder operations. Companies will need to navigate the new legal framework carefully to ensure compliance while protecting their own proprietary information.

The State Council, or Cabinet, issued regulations on July 22 for implementing the law, a set of working-level procedures that take effect from September.

Key aspects of the regulations include:

1. The mandatory establishment of secret-keeping offices for every central Communist Party and government unit, with designated staff responsible for confidentiality work.
2. Each work unit must formulate its own “list of state secrets,” with unit heads accountable for confidential work.
3. Restrictions on the travel of staff entrusted with classified information, including the need for prior approval to leave the country and mandatory confidentiality education training.
4. Leaks or suspected leaks must be reported immediately to a higher department within 24 hours.
5. Individuals handling state secrets at companies and institutions must be Chinese citizens, unless exceptions are granted by the state.
6. Pre-employment background checks and regular confidentiality training for government officials working with state secrets.
7. Strict handling protocols for physical equipment or items carrying state secrets, including designated staff for handling, repair, reading, storage, and transportation.
8. Such items must be delivered by two or more staff and cannot be taken abroad, while “top secret” documents cannot be extracted, downloaded, copied or compiled.
9. The criminalization of offences such as failing to report leaks promptly or neglecting data security procedures.

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