China’s New Cybersecurity Law May Be Used to Slow Foreign Trade

China may use its new cybersecurity law to shift the technology market towards domestic products at the expense of foreign companies—or to punish companies in the event of geopolitical or trade disputes, regulatory analysts told Bloomberg BNA.

The new law, which took effect June 1, has been lauded by Chinese authorities as providing a safeguard for companies and consumers without restricting foreign companies’ operations in China. However, it also creates new costs and onerous obligations that foreign companies may be unwilling or unable to meet, the analysts said.

“Every country should take seriously their cybersecurity and their obligations to protect ...