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Good afternoon, ladies and gentlemen. I am very happy to be invited to the Senior Experts Group meeting
as the representative of Chinese delegation to discuss such vulnerable and crucial issue as protection of
information and data in the era of cyber attacks.
So let me explain the gravity of the problem. Addressing cyber terrorism is the challenge not only for
China, but for every country with a high level of economic development. We meet today at a crossroads,
a point of decision, whether to reinforce cybersecurity cooperation, to elaborate new government
regulations thus inevitably creating barriers for business within China and abroad or to generate new
rules and find new ways apart from specific laws to address cyber attacks and protect personal data of
citizens and companies.
Famous politician Kevin Rudd once said “ In terms of the global economic footprint, let's just say China
within the next decade and a bit is likely to emerge as the world's largest economy. Obviously its foreign
policy and security policy footprint increases and that creates both challenges and opportunities for us all.”
So right now I would speak about the challenges, including the actions of Chinese government to
combat cyber attacks, why cybersecurity laws are the threat to business and innovation and what other
way out should be taken into account.
In today’s world, Cyber Security is becoming more important than ever before. To ensure safety and
security, a government should take serious steps to counter this threat. Thus Chinese government has
issued digital privacy guidelines including Personal Information Security Specification and New
Cybersecurity law. These regulations are the part of Chinese Data Governance initiative that affect not
only the protection of personal information but also sustainable activity of national and international
companies. And the current reality is that the law impacting cybersecurity has an adverse impact on the
development of Chinese business.
The significant point is that I do not speak out against any laws. My point of view that this kind of
legislative move goes completely against innovation. It’s the most simple and counterproductive way that
the government may choose to announce that “we try to protect you, citizens, from the interference in
your life”. But innovation involves a complex process of desicion-making and coordination with all
parties concerned.
What is more, Chinese business considers government regulatory actions to be the threat to their activity
within the country and on the international arena believing that the cyber security law is just a piece in a
larger ongoing political puzzle that companies will have to deal with. In the end, Chinese companies have
to be agile to succeed in the tense political environment.
Another risk for companies is that under the veil of cybersecurity, regulators will have access to
intellectual property and technical features of software that have to be disclosed. The type of businesses
most at risk will be those with special hardware and systems for network management.
This law also concerns international companies that have to weigh this risk against the opportunity to do
business in China, knowing China has a way to interfere in what previously was private, otherwise they
will choose to stand by principles of privacy at the risk of being excluded from the Chinese market.
So what is the way out of this dilemma? If we look at other solutions that can shape the future of
enterprise and personal security we can see a high need for non-governmental cyber security structures
that will act in the interest of companies and people. Indeed, we see the appearance of companies whose
aim is to design and implement appropriate security strategies. These cyber security services include
Monitoring Companies, consultants, data protection business and their operation’s experience shows that
a structured and holistic approach to manage cyber risk delivers the best protection of data.
Dear ladies and gentlemen,
I have come to the end of my speech,
Let me outline once again the main points of today’s speech. Chinese cybersecurity policies that are
implemented to counter cyber attacks make obstacles for sustainable development of Chinese companies
and create challenges for economic cooperation on international arena. That’s why I strongly appeal to
the need for creating private cyber security structures and services with complex coordination.
It goes without saying that addressing cyber terrorism concerns all of us. So I hope we will continue to
make more efforts and contributions to deepening the mutual cooperation in relation to this issue
between China and the countries of the world.
In conclusion I would like thank the members of the meeting for giving me this opportunity to speak to
you today. Understanding the problem is the most important thing about the solution so we are going the
right way. Thank you.