US warns new Chinese counterespionage law puts companies at risk

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The U.S. on Friday warned about a new Chinese counterespionage law, saying American and other foreign companies in the country could face penalties from Chinese authorities for regular business activities.

that goes into effect on July 1, banning the transfer of any information related to national security and broadening the definition of spying.

"These laws provide the PRC government with expanded legal grounds for accessing and controlling data held by U.S. firms in China," the NCSC said. It said the ambiguities of the law meant that "any documents, data, materials or items" could be deemed relevant to Chinese national security, also putting journalists, academics and researchers at risk.

"China will continue to promote high-level opening-up and provide a more law-based and international business environment for companies from all countries, including the United States," embassy spokesman Liu Pengyu said.

 

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