saying American and other foreign companies in the country could face penalties from Chinese authorities for regular business activities.
The US National Counterintelligence and Security Center said in a bulletin that China viewed outbound flow of data as a national security risk, and that the new and existing laws could compel companies’ locally employed Chinese nationals to assist in Chinese intelligence efforts. 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.
Chinese leader Xi Jinping has emphasised national security since taking office in 2012. Suspicion in China of the US and its allies has grown as the US-China rivalry has intensified, yet Beijing has insisted it is opening up to overseas investment.