On September 1, 2014, China’s Ministry of Industry and Information Technology (MIIT) issued the Guiding Opinions on Strengthening Network Security in the Telecommunications and Internet Sectors (the “Opinions”). Issuance of the Opinions is merely the latest in a series of developments evidencing an increased focus by Chinese regulators on network security, as well as a growing distrust of foreign technology and foreign IT companies (FITCs). This client alert briefly summarizes the main provisions of the Opinions and discusses more broadly the current regulatory and policy environment in China for FITCs.

The Opinions seek to clarify how MIIT will interpret and enforce existing Chinese telecommunications regulations governing network security. Like many Chinese laws, the telecommunications regulations are drafted using very broad language that leaves significant scope to the regulator to set implementation policies. As such, although they do not technically constitute new laws, the Opinions do, in effect, establish new rules, conditions and enforcement policies that are likely to impact FITCs doing business in China. The Opinions focus on strengthening network security in both private and public infrastructure. Amongst other things, the Opinions...