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The DSL serves as a fundamental pillar of China’s national security framework, regulating data processing activities across all sectors to safeguard state sovereignty and public interest. It establishes a mandatory Data Categorization and Classification System, which distinguishes between “important data” and “national core data,” subjecting the latter to the strictest regulatory oversight. From a cybersecurity perspective, the law is deeply integrated with Data Governance and Cross-Border Data Transfer (CBDT) restrictions, requiring organizations to perform regular risk assessments and obtain government approval before transferring sensitive data out of the country. Key relevant topics include Data Localization, Incident Reporting, and Multi-Level Protection Scheme (MLPS) compliance, as the act imposes heavy penalties—including business license revocation—for security breaches or unauthorized data disclosures to foreign law enforcement agencies.


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http://en.npc.gov.cn.cdurl.cn/2021-06/10/c_689311.htm

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