Foreign Laws Could Enable Intellectual Property Theft
New and enhanced cyber, national security, and import laws in effect in foreign countries are posing an increasing risk to U.S. technology and propriety information. For example, in 2017, China and Russia aggressively enforced laws that bolstered their domestic companies at the expense of U.S. companies and also might allow their companies access to U.S. intellectual property and proprietary information.
In 2017, China put into effect a new cyber security law that restricts sales of foreign information and communication technology (ICT) and mandates that foreign companies submit ICT for government-administered national security reviews. The law also requires that firms operating in China store their data in China, and it requires government approval prior to transferring data outside China. The U.S. Chamber of Commerce has gone on record to explain that if a foreign company is forced to localize a valuable set of data or information in China, whether for research and development purposes or simply to conduct its business, it will have to assume a significant amount of risk. Its data or information may be misappropriated or misused, especially given the environment in China, where companies face significant legal and other uncertainties when they try to protect their data and information.
- Pass National Security Reviews for Technology and Services
- Store All Data in China
- Form Joint Venture to Open Data Center
- Obtain Government Approval for Data Transfers
- Buy Government-Approved Encryption and Virtual Private Networks (VPNs)
- ► China has Access to U.S. Intellectual Property and Proprietary Information
