Business & Economy

China announces plan to develop cybersecurity sector

Beijing, Jul 13 (EFE).- China’s Industry and Information Technology Ministry announced a three-year plan for the country’s cybersecurity sector to reach a volume of more than 250 billion yuan ($39 billion), state-run media China Daily, reported Tuesday.

In order to achieve that objective, the sector must grow at a compound annual rate of more than 15 percent.

According to the ministry, the plan is aimed at protecting the national security interests and the development of cyberspace.

The draft, which was released on Monday, described the cybersecurity sector as a base for China to become an industrial and cyber power.

During the annual session of the National People’s Congress in March, China set a goal of achieving breakthroughs in core technologies in key areas.

The ministry’s plan encourages companies in key sectors to boost investment in cybersecurity.

In one of those key sectors, telecommunications, companies are expected to allocate 10 percent of their investment in computerization to cybersecurity.

Lately, Chinese tech companies have been facing increased scrutiny due to the alleged risks they pose to national security and the management of their users’ data with Beijing wanting to strengthen data sovereignty.

Last week, the Cyberspace Administration of China (CAC) launched a probe into ride-hailing service, Didi Chuxing, for alleged risks to the security of user data.

Investigations were also launched recently into truck-hailing companies, Yunmanman and Huochebang, citing national security risks.

The announcement of the ministry’s plan comes a few days after the CAC announced that technology companies with data of more than one million users would have to report to the cyberspace security review office before going public overseas. EFE


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