On the evening of May 21, China’s Internet Information Office announced that the products of Micron Technology, a US semiconductor giant, “have serious potential network security risks” that “pose significant security risks” to China’s critical information infrastructure supply chain. Consulting firms with a business nature involving market research and company operation data may become prime targets of Beijing authorities’ supervision. The new “Counter-Espionage Law” not only creates a shocking effect on Chinese people, foreigners, Taiwanese, journalists, scholars, and non-governmental organizations but will also significantly increase the operational risks of Chinese enterprises, foreign enterprises in China, and Taiwanese businesses. The new law also adds “joining spy organizations and their agents” and “cyber attacks against national agencies, confidential units, or critical information infrastructure” as espionage activities. Article 7 prohibits Chinese citizens from engaging in any behavior that endangers the country’s security, honor, and interests it also makes criticizing the Chinese government a potential illegal offense. Therefore, if individuals or any company or organization acquires “non-confidential information” about China’s economy or politics, but Chinese authorities deem that this information involves national security or interests, they can still be regarded as “espionage activities” based on the arbitrary definition “other documents, data, information, and items related to national security and interests”. The new law still does not define “national security” or “national interests” in China. However, after the fifth type of activity, the sixth type is classified as “other spy activities”. The new version of the “Counter-Espionage Law” presents six “espionage activities” types in Article 4. In the 2014 version, there was no specific definition or specification of “spy activities” it was only briefly mentioned as “(activities) endangering the national security of the People’s Republic of China”. The 2014 version of “Counter-Espionage Law” regulations is quite ambiguous, leaving much room for interpretation and becoming a “powerful” enforcement tool for the Chinese authorities. In early May, consulting firm Capvision Partners was accused of being an “accomplice of overseas intelligence agencies” on May 21, American memory chip giant Micron was accused by the Cyberspace Administration of China of posing “serious security risks” to critical information infrastructure supply chains, further raising concerns about China’s government’s intentions and related risks regarding national security control.
Due to multiple suspected violations of the “National Security Law” and the “Counter-Espionage Law” that have occurred this year, combined with a significant increase in the new law and vague definitions concerning “espionage activities” and “national security and interests”, this has caused concern and discussion from outside. The new version increased to 71 clauses, while the original had only 40. On April 26, 2023, the Standing Committee of the National People’s Congress in China voted to pass the revised draft of the “Counter-Espionage Law”, which will come into effect on July 1.
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