China Cybersecurity Fines Are About To Be More Costly! Up To Billions of Yuan?

China's cybersecurity fines are about to be more costly, reaching millions of Chinese yuan as the Asian country seeks to amend its Cybersecurity Law.

It looks like China is trying to intimidate cybersecurity offenders much more as it tries to raise the current fines to more unaffordable figures.

China Cybersecurity Fines Are Set To Be More Costly

A report from the South China Morning Post notes that the cyberspace vice-minister of the Chinese nation previously stated that the internet law still needs better implementation. And what's more, its fines should be more frightening.

The vice-minister of the Cyberspace Administration of China or shortly and generally known as CAC, Sheng Ronghua, said last August that the enforcement of the internet law in the country needs to "grow very sharp teeth."

And to do so, the CAC vice-minister believes that the fines or punishment for offenders need to be immensely hefty and that it would "make one's heart jump."

And this time, it appears that China is heading in that direction.

The South China Morning Post reports that the internet watchdog of China is now proposing updates to the current Cybersecurity Law, which amends the fines to a heftier cost.

It is to note that the last time that the Chinese Cybersecurity Law was updated was five years ago.

Roughly half a decade after it was implemented, the CAC now wants fines to go as high as 50 million yuan, which amounts to a staggering $7.17 million.

Billions of Fines for Tech Giants?

According to a report by Reuters, the fine could also be based on around 5% of the earnings of the offender from the previous year, CAC noted on Sept. 14, Wednesday.

But it could also go another way. The proposal seeks to multiply the amount of products or services by ten times for their fine.

Given that, the South China Morning Post highlights that the proposed fines are likely to reach staggering numbers or around billions of Chinese yuan once it kicks off.

It comes as the new fines could also be based on the revenue of the firms that go against the Cybersecurity Law of the Asian territory.

But the Hong Kong-based outlet notes that the possible cost of fines in the future is only parallel to what tech giants in the country have been fined.

For instance, the ride-hailing firm, Didi, paid the billions worth of fines after violation of data protection violations, the news outlet adds.

The Chinese tech giant, Didi, faced a cybersecurity probe after it held its IPO in New York, and had been asked to pay an astounding 8 billion yuan fine last July.

This article is owned by Tech Times

Written by Teejay Boris