China has passed a law that tightens control over data storage, writes Bloomberg. Now technology companies that improperly store or process “key government data” can have their licenses revoked. The authorities also received the right to close businesses or impose a fine of up to $ 1.6 million.
They can be punished for transferring data abroad, processing it there, or providing information to foreign law enforcement agencies without the permission of the Chinese authorities. The law will come into force on September 1. Experts point out that this is another blow to the tech giants.
The tightening of the screws by the Chinese government has been going on for several months. The contradictions between authorities and entrepreneurs have intensified due to the conflict between the owner of Alibaba Jack Ma and the national regulator in the field of information technology.
This was followed by the disruption of the IPO of a subsidiary of Alibaba, bans on hundreds of applications and services that allegedly pose a threat to the personal data of residents.
At the same time, the abundance of technology companies seeking to enter the stock exchange was named as one of the main advantages of the US and Chinese economies over the European one. This is the conclusion reached by the authors of a study conducted by the consulting company McKinsey,