On 26 April 2023, the newly amended Counterespionage Law of the People's Republic of China ("Counterespionage Law" or "New Law") was passed and will come into force on 1 July this year. Notably, the New Law introduces for the first time the concept of illegal provision of specific "data" in specific espionage activities and extends from traditional territorial security to include cyber and technological security. With the enactment of the New Law and the intensive enforcement activities, the risk of espionage violation is accumulating particularly for foreign businesses active in China with sensitive data.

Espionage violations were originally provided in the State Security Law of the People's Republic of China (1993), until the Counterespionage Law was adopted in 2014 to specifically define what the activities of espionage are. At present, the central government of China perceives the situation of counterespionage as increasingly severe and that non-traditional security threats are intertwined. For example, in April 2022, the information system of Northwestern Polytechnical University, a leading university in China, was reported to be under cyber-attack and data theft originated from the US Office of Tailored Access Operation. Recently, a few consulting firms including Mintz Group and Capvision, were raided by China's state security administrations in Beijing and Shanghai together with several departments for allegedly endangering state security and leaking state secrets. Under this background, the Counterespionage Law in 2014 was finally amended to meet the challenges of a more complex international environment.

New counterespionage regulation regime certainly does not mean that China is to prohibit foreign investments from entering the consulting businesses in China. However, with the enactment of the New Law and the intensive enforcement activities, the risk of espionage violation is accumulating particularly for foreign businesses active in China with sensitive data, which should seek professional supports from data compliance counsels to address the concerns of companies regarding national security and data protection from the point of the intersection between the Counterespionage Law and data protection laws.

I. Expansion of Espionage Activity Definition: Data, Information and Cyberattacks

The main changes of the activities of espionage are as follows based on the definition stated in Article 4 of the New Law:

(1) defection to an espionage organization and its agents constitutes activities of espionage.

(2) all documents, data, information and articles which are related to state security and interests are protected from the activities of stealing, spying, bribing or illegally providing.

(3) the activities of colluding, instigating, and funding cyber-attacks, intrusion, interference, control and destruction against state organs, secret-involved entity, or critical information infrastructures, etc.

(4) the espionage activities conducted by espionage organizations and their agents in the territory of China, or through making use of citizens, organizations or other conditions from China, against a third country, endangers the national security of China.

It is also worth noting that the relevant concepts above such as "colluding", "funding", etc. are provided in Detailed Rules for the Implementation of the Counterespionage Law of the People's Republic of China ("Detailed Rules"), which is still in effect through predating the amendment.

Moreover, the New Law bridges with Data Security Lawof the People's Republic of China ("Data Security Law") and Cybersecurity Law of the People's Republic of China ("Cybersecurity Law"). In terms of data information and cyber security, the content of Data Security Law and Cybersecurity Law would become the law enforcement basis for related espionage activities.

II. Increase of Administrative Penalties for State Security Administration

The New Law enlarges the scope of administrative penalties in Chapter 5, meaning that the state security administrations have both administrative punishment and criminal law enforcement powers during counterespionage law enforcement. First, according to Article 54, the state security administrations are empowered to fine any individual or entity who conducts espionage activities that are not alleged to constitute crimes. Besides the administrative fines above, any entity may also be imposed temporary suspension of businesses or revocation of licenses by the state security administrations. Second, according to Article 56, organizations including administrations, associations and enterprises that fail to comply with the counterespionage security precaution obligations may be ordered to rectify the misconduct or even hold regulatory talks with the relevant principals by the state security administrations. If the misconduct or failure above induces adverse consequences, the state security administrations are empowered to impose a warning or notice of criticism.

III. Expansion of Enforcement Power for State Security Administration

Chapter 3 of the New Law refines and enhances the responsibilities of the state security administrations in counter-espionage work. For example, according to Article 24, a staff member of a state security administration may check the identification of any Chinese citizen or any person from outside the territory of China and may inquire of the relevant individual or organization about the relevant information and may search the belongings carried by a person whose identity is unknown or who is suspected of espionage.

The cooperation enforcement regime established in the New Law also provides the state security administrations more enforcement powers including data retrieval and prohibition of entry and exit.

IV. Remaining to be Seen: New Regulations and Practices of Cooperation Enforcement Regime

Article 6 of the New Law establish the cooperation enforcement regime among several administrations against espionage activities. Firstly, state security administrations are the primary authorities in charge of counterespionage work, while public security organs, state secret protection authorities and the relevant departments of the army shall closely cooperate pursuant to their own respective duties. Besides, when it comes to the cooperation relating to exit and entry or cyber espionage activities, Article 33 and Article 36 of the New Law provide the cooperation requirements for immigration administration and relevant cyber security authorities to impose restrictive measures related to immigration, telecommunication transmission, Internet defense or program services.

The amendment to the Counterespionage Law reflects China's support for counterespionage work, and the establishment of a relevant system is also clearly stated in this amendment. According to Article 5 of the New Law, the State establishes a counterespionage work coordination mechanism to make overall coordination of major matters in counterespionage work, and study and resolve major issues in counterespionage work. Therefore, it is foreseeable that more relevant regulations will be introduced in the coming years.

V. Future: Doing Businesses under Compliance Control

As has been mentioned above, the newly amended Counterespionage Law certainly does not mean that China is to prohibit foreign investments from entering the consulting businesses in China. However, the New Law also has released a signal that the risk of espionage violation is accumulating. Foreign investors that engage in the consulting business and enterprises that engage with the foreign invested consulting firms should pay more attention to the compliance control in the future. As the People's Daily underlined, "China would continue to support the development and growth of consulting businesses, encourage China's consulting undertakings to engage in the international business." Meanwhile, consulting firms also should thoroughly perform their compliance obligations regarding national security and data protection from the point of the intersection between the Counterespionage Law and data protection laws.

Appendix 1: Contrast Table of Counterespionage Law of the People's Republic of China Before and After Revision (Bilingual Version)

Before Revision1

After Revision

Chapter I General Provisions

Chapter I General Provisions

Article 1 To prevent, frustrate and punish espionage and maintain national security, this Law is developed in accordance with the Constitution.

Article 1 This Law is enacted in accordance with the Constitution for the purposes of strengthening the counterespionage work, preventing, frustrating, and punishing espionage, maintaining national security, and protecting the interest of the people.

Article 2 Counterespionage work shall be conducted under the uniform leadership of the state's central authorities according to the principles of combining open work with confidential work, combining specialized work with reliance on the masses, implementing proactive defense, and imposing legal punishment.

Article 2 Counterespionage work shall be conducted under the centralized and uniform leadership of the Central Committee of the Communist Party of China by adhering to the holistic approach to national security, combining open work with confidential work, combining specialized work with reliance on the people, proactive defense, imposing legal punishment, and paying attention to temporary and permanent solutions, so as to build a firm line of defense to maintain national security by relying on the people.

Article 5 Counterespionage work shall be legally conducted, during which human rights shall be respected and protected and the lawful rights and interests of citizens and organizations shall also be protected.

Article 3 Counterespionage work shall be legally conducted, during which human rights shall be respected and protected and the lawful rights and interests of individuals and organizations shall be protected.

Article 38 For the purposes of this Law, espionage means the following conduct:

(1) Activities compromising the national security of the People's Republic of China, whether committed by an espionage organization or its agent or by any other person as instigated or funded by the aforesaid or committed by the aforesaid organization or agent in collusion with a domestic or overseas institution, organization or individual.

(2) Joining an espionage organization or accepting a task assigned by an espionage organization or its agent.

(3) Stealing, spying, purchasing or illegally providing any state secret or intelligence or causing a state employee to betray his or her country by instigation, inducement or bribery, which is committed by an overseas institution, organization or individual other than an espionage organization and its agent or by any other person as instigated or funded by the aforesaid or committed by a domestic institution, organization or individual in collusion with the aforesaid.

(4) Indicating the attack targets to enemies.

(5) Other espionage activities.

Article 4 For the purposes of this Law, espionage means the following conduct: ??

(1) Activities compromising the national security of the People's Republic of China, which are committed by an espionage organization or its agent or by any other person as instigated or funded by the aforesaid or committed by the aforesaid organization or agent in collusion with a domestic or overseas institution, organization, or individual.

(2) Joining an espionage organization or accepting a task assigned by an espionage organization or its agent, or seeking refuge with an espionage organization or its agent.

(3) Stealing, spying, purchasing, or illegally providing any state secret or intelligence, and other documents, data, materials, and items relating to the national security and interest or causing a state employee to betray his or her country by instigation, inducement, threat, or bribery, which is committed by an overseas institution, organization, or individual other than an espionage organization and its agent or by any other person as instigated or funded by the aforesaid or committed by a domestic institution, organization, or individual in collusion with the aforesaid.

(4) Attacking, intruding into, interfering with, controlling, or destructing the network of a state organ, entity involving confidential information, or key information infrastructure, among others, which is committed by an espionage organization and its agent or by any other person as instigated or funded by the aforesaid or committed by a domestic or overseas institution, organization, or individual in collusion with the aforesaid.

(5) Indicating the attack targets to enemies.

(6) Conducting other espionage activities. This Law shall apply if an espionage organization or its agent engages in espionage activities against a third country within the territory of the People's Republic of China or by taking advantage of any citizen, organization, or other conditions of the People's Republic of China, which compromises the national security of the People's Republic of China.

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Article 5 The state shall establish a coordination mechanism for the counterespionage work to conduct the overall coordination of significant matters concerning the counterespionage work, and study and resolve major issues in the counterespionage work.

Article 3 National security authorities are the authorities in charge of counterespionage work.

Public security, secrecy administration, and other relevant departments and the relevant departments of the armed forces shall, according to their division of functions, closely cooperate with each other, strengthen coordination, and effectively conduct the relevant work in accordance with the law.

Article 6 National security authorities are the authorities in charge of the counterespionage work.

Public security, secrecy, and other relevant departments and the relevant departments of the armed forces shall, according to their division of duties, closely cooperate with each other, strengthen coordination, and effectively conduct the relevant work in accordance with the law.

Article 4 Citizens of the People's Republic of China shall have the obligation to safeguard the security, honor and interest of the state, and shall not compromise in any way the security, honor or interest of the state.

All state organs and armed forces, all political parties and social groups, and all enterprises and public institutions shall have the obligation to prevent and frustrate espionage and maintain national security.

National security authorities must rely on the support from the masses in their counterespionage work, and mobilize and organize the masses to prevent and frustrate espionage compromising national security.

Article 7 Citizens of the People's Republic of China shall have the obligation to safeguard the security, honor, and interest of the state, and shall not compromise in any way the security, honor, or interest of the state.

All state organs and armed forces, all political parties and social groups people's groups, enterprises and public institutions, and other social organizations shall have the obligation to prevent and frustrate espionage and maintain national security.

National security authorities must rely on the support from the people in their counterespionage work, and mobilize and organize the people to prevent and frustrate espionage.

Article 20 (Paragraph 1/2) Citizens and organizations shall provide facilitation or other assistance to counterespionage work. ?

Article 23 Any citizen or organization shall keep confidential a state secret known by the citizen or organization involving espionage work.

Article 8 Any citizen or organization shall, in accordance with the law, support and assist the counterespionage work, and keep confidential state secrets and counterespionage work secrets to which it or he has access.

Article 7 The state shall provide protection for organizations and individuals supporting or assisting in counterespionage work, and reward those that have made significant contributions to counterespionage work.

Article 9 The state shall provide protection for individuals and organizations supporting or assisting in the counterespionage work. ??

The individuals and organizations that report espionage or have made significant contributions to the counterespionage work shall be commended and rewarded according to the relevant provisions issued by the state.

Article 6 Espionage compromising national security of the People's Republic of China, whether committed by an overseas institution, organization or individual or by any other person as instigated or funded by the aforesaid or committed by a domestic institution, organization or individual in collusion with an overseas institution, organization or individual, shall be subject to legal liability.

Article 10 Espionage compromising the national security of the People's Republic of China, whether committed by an overseas institution, organization, or individual or by any other person as instigated or funded by the aforesaid or committed by a domestic institution, organization, or individual in collusion with an overseas institution, organization, or individual, shall be subject to legal liability.

Article 17 National security authorities and their employees shall, in their work, act in strict accordance with the law, and shall not overstep or abuse their powers or infringe upon the lawful rights and interests of any organization or individual.

The information and materials on organizations and individuals obtained by national security authorities and their staff members in legally performing their counterespionage functions may only be used for counterespionage work. State secrets, trade secrets and individual privacy shall be kept confidential.

Article 11 National security authorities and their staff members shall, in their work, act in strict accordance with the law, and shall not overstep or abuse their powers or infringe upon the lawful rights and interests of any individual or organization. ??

The information and materials on individuals and organizations obtained by national security authorities and their staff members in legally performing their counterespionage work duties may only be used for the counterespionage work. State secrets, work secrets, trade secrets, individual privacy, and personal information shall be kept confidential.

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Chapter II Security Protection

Article 19 State organs, social groups and other organizations shall educate their employees on the maintenance of national security, and mobilize and organize them to prevent and frustrate counterespionage.

Article 12 State organs, people's groups, enterprises, public institutions, and other social organizations shall undertake primary responsibilities for their counterespionage security protection work, implement counterespionage security protection measures, provide education on maintaining national security to their staff members, and mobilize and organize their staff members to prevent and frustrate espionage. ??

Local people's governments at all levels and relevant industry departments shall, according to their division of duties, administer the counterespionage security protection work within their respective administrative regions or industries.

National security authorities shall coordinate, guide, supervise, and inspect the counterespionage security protection work in accordance with the law.

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Article 13 People's governments at all levels and the relevant departments shall organize publicity and education on counterespionage security protection, include counterespionage security protection knowledge in education, training, and legal publicity, and enhance all citizens' counterespionage security protection awareness and national security literacy. ??

News, radio, television, cultural, Internet information service, and other entities shall conduct pertinent counterespionage publicity and education for the public.

National security authorities shall, in light of the situation of counterespionage security protection, direct relevant entities to carry out counterespionage publicity and education activities and enhance their protection awareness and ability.

Article 24 No individual or organization may illegally hold any document, material or other item classified as a state secret.

Article 14 No individual or organization may illegally obtain or hold any document, data, material, or item classified as a state secret.

Article 25 No individual or organization may illegally hold or use any specialized espionage instrument as specially needed for espionage activities. Specialized espionage instruments shall be confirmed by the national security department of the State Council in accordance with the relevant provisions of the state.

Article 15 No individual or organization may illegally produce, sell, hold, or use any specialized espionage instrument as specially needed for espionage activities. Specialized espionage instruments shall be confirmed by the national security department of the State Council in accordance with the relevant provisions issued by the state.

hat discovers any espionage shall report to a national security authority in a timely manner; and if the citizen or organization reports to a public security authority or any other state organ or organization, the state organ or organization shall immediately transfer the report to the national security authority for processing.

Article 16 Any citizen or organization that discovers espionage shall report to a national security authority in a timely manner; and if the citizen or organization reports to a public security authority or any other state organ or organization, the relevant state organ or organization shall immediately transfer the report to the national security authority for processing. ??

A national security authority shall release to the public its telephone number, mailbox, and online platform, among others, for receiving reports, promptly handle reports in accordance with the law, and keep informants confidential.

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Article 17 The state shall establish management rules for key entities for counterespionage security protection. A key entity for counterespionage security protection shall establish counterespionage security protection work rules, fulfill counterespionage security protection work requirements, and specify the counterespionage security protection duties of its internal functional departments and personnel.

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Article 18 A key entity for counterespionage security protection shall strengthen the education and management of counterespionage security protection for its employees, and supervise and inspect the fulfillment of counterespionage security protection obligations by any person who leaves his or her post or office within the continuing confidentiality period.

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Article 19 A key entity for counterespionage security protection shall strengthen the management of the routine security protection of matters, sites, and carriers, among others, involving confidential information, and take counterespionage physical protection measures such as isolation and reinforcement, closed management, and setting warnings.

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Article 20 A key entity for counterespionage security protection shall, according to the requirements and standards for counterespionage technical protection, take corresponding technical measures and other necessary measures, and strengthen counterespionage technical protection against critical departments and parts, network facilities, and information systems.

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Article 21 Where a new construction, reconstruction, or expansion project locates within the surrounding security control area of an important state organ, national defense and military entity, or any other important entity involving confidential information or important military facilities, a national security authority shall implement licensing for a construction project involving national security matters. ??

In developing national economic and social development plans, territorial space plans, and other relevant plans, all local people's governments at and above the county level shall fully consider national security factors and designated security control areas, and request comments from national security authorities.

The designation of security control areas shall coordinate development and security, and adhere to the principles of being scientific, reasonable, and necessary. Such areas shall be jointly designated by national security authorities in conjunction with the departments of development and reform, natural resources, housing and urban-rural development, secrecy, and science, technology, and industry for national defense, among others, as well as relevant departments of the armed forces, and shall be reported to people's governments of provinces, autonomous regions, and municipalities directly under the Central Government for approval and dynamic adjustment.

The specific measures for the licensing of construction projects involving national security matters shall be developed by the national security department of the State Council in conjunction with the relevant departments.

Article 16 As needed for counterespionage work, a national security authority may develop counterespionage technical prevention standards in conjunction with the relevant departments, guide the relevant departments in implementing counterespionage technical prevention measures, and conduct counterespionage technical prevention inspection and testing of the departments with hidden risks after undergoing strict approval formalities.

Article 22 As needed for the counterespionage work, a national security authority may develop counterespionage technical prevention standards in conjunction with the relevant departments, guide the relevant entities in implementing counterespionage technical prevention measures, and conduct counterespionage technical prevention inspection and testing of the entities with hidden risks after undergoing strict approval formalities.

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Chapter III Investigation and Handling

Article 8 National security authorities shall, in accordance with the law, perform the functions of investigation, detention, interrogation and execution of arrest as well as other functions prescribed by the law in counterespionage work.

Article 23 National security authorities shall, in accordance with the law, perform the functions prescribed by this Law and the relevant laws in the counterespionage work.

Article 9 In executing a task in accordance with the law, the employees of a national security authority shall, after producing their credentials as legally required, have the right to check the identification of a Chinese citizen or a foreign national and gather the relevant information from the relevant organizations and individuals through investigation or interview.

Article 24 In executing a counterespionage work task in accordance with the law, the staff members of a national security authority may, after producing their work credentials as required, check the identification of a Chinese citizen or a foreign national and gather the relevant information from the relevant individual or organization, and inspect the personal articles carried by any unidentified person who is suspected of espionage.

Article 13 As needed for counterespionage work, a national security authority may legally inspect the electronic communication tools and instruments and other equipment or facility of a relevant organization or individual. If the national security authority discovers any circumstances compromising national security during inspection, it shall order the organization or individual to make rectification; and may take seizure or impoundment measures if the organization or individual refuses to make rectification or still fails to satisfy the relevant requirements after rectification. ?

For the equipment or facility seized or impounded under the preceding paragraph, after the circumstances compromising national security disappear, the national security authority shall remove the seizure or impoundment measure in a timely manner.

Article 25 In executing a counterespionage work task in accordance with the law, the staff members of a national security authority may, after producing their work credentials, inspect the electronic equipment, facilities, and relevant programs and tools of a relevant individual or organization with the approval of the person in charge of the national security authority at or above the level of a districted city. If the national security authority discovers any circumstance compromising national security during the inspection, it shall order the individual or organization to take measures to immediately address and correct the relevant issues. The national security authority may take seizure or impoundment measures if the individual or organization refuses to address and correct the relevant issues or still has any potential national security hazard after correction.

For the electronic equipment, facilities, and relevant programs and tools seized or impounded in accordance with the provisions of the preceding paragraph, after the circumstances compromising national security disappear, the national security authority shall remove the seizure or impoundment measure in a timely manner.

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Article 26 The staff members of a national security authority may, when executing a counterespionage work task in accordance with the law, consult and obtain the relevant documents, data, materials, and items in accordance with the relevant provisions issued by the state with the approval of the person in charge of the national security authority at or above the level of a districted city, and the relevant individual or organization shall cooperate. The access and retrieval of such materials shall not exceed the scope and limit required for the execution of the counterespionage work task.

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Article 27 Where it is necessary to summon a person who violates this Law to accept the investigation, a summon certificate shall be used for summoning him or her, with the approval of the person in charge of the case handling department of the national security authority. If any person who violates this Law is discovered on the spot, the staff member of a national security authority may summon him or her orally after producing his or her work credentials in accordance with the relevant provisions, but the situation shall be noted in the interview transcript. The summoned person shall be informed of the reasons and basis for summoning. Whoever refuses to accept the summon or evades the summon without any justifiable reason may be summoned compulsorily. ??

The national security authority shall interview the summoned person at a designated place or his or her domicile in the city or county where the summoned person is located.

The national security authority shall interview and investigate the summoned person in a timely manner. The time of the interview and investigation shall not exceed eight hours. If the circumstances are complicated and administrative detention may apply or it is criminally punishable, the time for interview and investigation shall not exceed 24 hours. The national security authority shall provide the summoned person with necessary food and drink and necessary rest time. Consecutive summoning is prohibited.

The national security authority shall promptly notify the family member of the summoned person of the reasons for the summons, unless such notification is impossible or may impede the investigation. After the aforesaid circumstances disappear, the family member of the summoned person shall be immediately notified.

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Article 28 A national security authority may, when investigating espionage, legally inspect persons, items, and sites suspected of espionage with the approval of the person in charge of the national security authority at or above the level of a districted city. The body examination of females shall be conducted by female personnel.

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Article 29 A national security authority investigating espionage may inquire about relevant property information of a person suspected of espionage with the approval of the person in charge of the national security authority at or above the level of a districted city.

Article 15 A national security authority may legally seize, impound or freeze the tools and other property used for espionage and the funds, places and materials used to support espionage, with the approval of the person in charge of the national security authority at or above the level of a districted city.

Article 30 A national security authority may, when investigating espionage, legally seize, impound, or freeze the site, facility, or property suspected of being used for espionage, with the approval of the person in charge of the national security authority at or above the level of a districted city. No site, facility, or property irrelevant to the espionage under investigation may be seized, impounded, or frozen.

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Article 31 Where the staff members of a national security authority take such measures as consultation and access, summoning, inspection, inquiry, seizure, impoundment, and freeze in the counterespionage work, two or more staff members shall be appointed to take such measures, and they shall produce their work credentials and relevant legal instruments in accordance with the relevant provisions, and the relevant personnel shall affix their signatures and seals to the relevant transcripts and other written materials.

The staff members of a national security authority that conduct important evidence collection work such as inspection, seizure, and impoundment shall make an audiovisual recording of the entire process, and retain it for future reference.

Article 22 During a national security authority's investigation into espionage or collection of relevant evidence, the relevant organizations and individuals shall honestly provide the relevant information or evidence, and may not refuse to do so.

Article 32 During a national security authority's investigation into espionage or collection of relevant evidence, the relevant individuals and organizations shall honestly provide the relevant information or evidence, and may not refuse to do so.

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Article 33 The national security department of the State Council may decide to prohibit a Chinese citizen who may, after leaving China, compromise national security or cause great loss to the national interest from leaving China within a certain period, and notify the immigration administration.The national security authority at or above the provincial level may notify an immigration administration to prohibit a person suspected of espionage from leaving China.

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Article 34 Where a foreign national is deemed to be likely to conduct any activity compromising national security after entering China, the national security department of the State Council may notify an immigration administration to prohibit the foreign national from entering China.

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Article 35 For persons who are not allowed to exit or enter China as notified by the national security authority, the immigration administration shall be governed by the relevant provisions issued by the state. If the circumstance of prohibiting a person from leaving or entering China disappears, the national security authority shall revoke the decision of prohibiting the person from leaving or entering China in a timely manner and notify the immigration administration.??

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Article 36 Where a national security authority discovers any risk such as any network information involving espionage or a network attack, it shall, according to the division of duties prescribed in the Cybersecurity Law of the People's Republic of China, promptly notify the relevant department, which shall handle the risk in accordance with the law or order the telecommunications business and Internet service provider to promptly take such measures as fixing loopholes, consolidating network protection, ceasing transmission, eliminating programs and contents, suspending relevant services, removing relevant applications, and closing relevant websites, and keep the relevant records. If the circumstances are serious and the failure to immediately take measures will seriously compromise national security, the national security authority shall order the relevant entity to fix the loopholes, cease the relevant transmission, and suspend the relevant services, and notify the relevant department. ??

If the aforesaid information or risk has been eliminated after the relevant measures are taken, the national security authority and the relevant departments shall make a decision to resume the relevant transmission and services in a timely manner.

Article 12 As needed for the reconnaissance of espionage, a national security authority may take technical reconnaissance measures after undergoing strict approval formalities in accordance with the relevant provisions of the state.

Article 37 As needed for the reconnaissance of espionage the counterespionage work, a national security authority may take technical reconnaissance measures and identity protection measures after undergoing strict approval formalities in accordance with the relevant provisions issued by the state.

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Article 38 Where any violation of this Law is suspected of any crime, if it is necessary to identify whether the relevant matter is a state secret or intelligence and assess the harmful consequences thereof, the state secrecy department or the secrecy department of the province, autonomous region, or municipality directly under the Central Government shall, according to the relevant procedures, conduct the identification and organize the assessment within a certain period of time.

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Article 39 Where a national security authority finds upon investigation that the espionage is suspected of any crime, it shall docket the case for investigation in accordance with the provisions of the Criminal Procedure Law of the People's Republic of China.

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Chapter IV Guarantee and Supervision

Article 18 The performance of duty by the employees of national security authorities in accordance with the law shall be protected by the law.

Article 40 The performance of duties by the staff members of national security authorities in accordance with the law shall be protected by the law.

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Article 41 When a national security authority legally investigates espionage, postal services, express delivery services and other logistics operators, telecommunications businesses, and Internet service providers shall provide necessary support and assistance.

Article 11 (Paragraph 1/2) In executing an urgent task in accordance with the law, the employees of a national security authority may, after producing their credentials, have priority in taking public transportation, and have priority of passage in case of traffic congestion. ?

Article 42 In executing an urgent task, the staff members of a national security authority may, after producing their work credentials, have the priority in taking public transportation, and have priority of passage, and other conveniences in passage.

Article 10 In executing a task in accordance with the law, the employees of a national security authority may enter the relevant site or entity after producing their credentials as legally required, or enter the relevant restricted area, site or entity as approved in accordance with the relevant provisions of the state after producing their credentials, to consult or obtain the relevant files, materials and items.

Article 43 In executing a task in accordance with the law, the staff members of a national security authority may enter the relevant site or entity after producing their work credentials as required, or enter the relevant restricted area, site, or entity as approved in accordance with the relevant provisions issued by the state after producing their work credentials, to consult or obtain the relevant files, materials and items.

Article 11 (Paragraph 2/2) As needed for counterespionage work, a national security authority may, in accordance with the relevant provisions of the state, have priority in using or legally requisition the means of transport or communication, site or building of a state organ, social group, enterprise, public institution or individual, and when necessary, set up a relevant work site and equipment or facility, but shall return or restore them to the original state in a timely manner after completion of the task, and pay the relevant expenses as legally required; and shall make compensation for any losses caused.

Article 44 As needed for the counterespionage work, a national security authority may, in accordance with the relevant provisions issued by the state, have the priority in using or legally requisitioning the means of transport or communication, site or building, among others, of a state organ, people's group, enterprise, public institution, or any other social organization or individual, and when necessary, set up a relevant work site and facility or equipment, but shall return or restore them to the original state in a timely manner after the completion of the task, and pay the relevant expenses as required; and shall make compensation for any loss caused.

Article 14 As needed for counterespionage work, a national security authority may, in accordance with the relevant provisions of the state, request the customs, frontier defense and other inspection authorities to exempt the relevant employees, materials and instruments from inspection. The relevant inspection authorities shall provide assistance.

Article 45 As needed for the counterespionage work, a national security authority may, in accordance with the relevant provisions issued by the state, request the customs, frontier defense immigration administration, and other inspection authorities to facilitate customs clearance for relevant personnel and exempt relevant materials and equipment, among others, from inspection. The relevant inspection authorities shall provide assistance in accordance with the law.

Article 20 (Paragraph 2/2) Whoever assists in counterespionage work may request a national security authority for protection of his or her personal safety or that of his or her close relatives if it is at risk. The national security authority shall, in accordance with the law, take protective measures in conjunction with the relevant departments.

Article 46 Where the personal safety of a staff member of a national security authority or any of his or her close relatives is threatened as a result of performing a task, or as a result of an individual's assistance in performing a counterespionage work task, the national security authority shall, in conjunction with the relevant departments, take necessary measures in accordance with the law for protection or rescue.

Any individual who supports or assists in the counterespionage work may request a national security authority for the protection of his or her personal safety or that of his or her close relatives if it is at risk. The national security authority shall, in accordance with the law, take protective measures in conjunction with the relevant departments.

Where any individual or organization suffers any property loss as a result of supporting or assisting in the counterespionage work, the individual or organization shall be compensated in accordance with the relevant provisions issued by the state.

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Article 47 The state shall properly resettle the persons who have made contributions to the counterespionage work and need to be resettled.

The public security, civil affairs, finance, health, education, human resources and social security, veterans affairs, medical insurance, immigration administration, and other relevant departments, and state-owned enterprises and public institutions shall assist national security authorities in effectively conducting the resettlement work.

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Article 48 Any person who suffers a disability or sacrifices himself or herself or dies as a result of conducting, supporting, or assisting in the counterespionage work shall receive a pension and other preferential treatment in accordance with the relevant provisions issued by the state.

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Article 49 The state encourages scientific and technological innovations in the field of counterespionage and shall allow science and technology to play its role in the counterespionage work.

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Article 50 A national security authority shall strengthen the building of and professional training for the talent team of counterespionage professionals to enhance their capability for the counterespionage work. ??

The staff members of a national security authority shall be provided with political, theoretical, and professional training as planned. The training shall adhere to integrating theory with practice, teaching based on needs, and accentuating actual results, and shall improve professional competence.

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Article 51 The national security authority shall strictly carry out internal supervision and security review rules, supervise its staff members' compliance with laws and discipline, among others, and take necessary measures in accordance with the law to conduct security review on a periodical basis or from time to time.

Article 26 Any individual or organization shall have the right to file a report or an accusation with the national security authority at a higher level or the relevant department against the overstepping or abuse of power or any other illegal conduct committed by a national security authority and its employees. The national security authority or the relevant department that accepts the report or accusation shall find the truth in a timely manner, be responsible for the handling thereof, and notify the individual or organization that files the report or accusation of the handling results. ?

No individual or organization may suppress or retaliate against a citizen or organization that assists in the work of a national security authority or files a report or accusation in accordance with the law.

Article 52 Any individual or organization shall have the right to file a report or an accusation with the national security authority at a higher level, the oversight authority, the people's procuratorate, or the relevant department against the overstepping or abuse of power, or any other illegal conduct committed by a national security authority or its staff member. The national security authority or oversight authority, the people's procuratorate, or the relevant department that accepts the report or accusation shall find the truth in a timely manner, handle the report or accusation in accordance with the law, and promptly notify the individual or organization that files the report or accusation of the handling results.

No individual or organization may suppress or retaliate against an individual or organization that supports or assists in the work of a national security authority or files a report or accusation in accordance with the law.

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Chapter V Legal Liability

Article 27 (Paragraph 1/2) Where espionage committed by an overseas institution, organization or individual or by any other person as instigated or funded by the aforesaid or committed by a domestic institution, organization or individual in collusion with an overseas institution, organization or individual constitutes a crime, the offender shall be subject to criminal liability in accordance with the law. ?

Article 53 Whoever commits espionage shall be held criminally liable in accordance with the law if it is criminally punishable.

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Article 54 Where an individual commits espionage, which does not constitute a crime, the national security authority shall give a warning to him or her, subject him or her to administrative detention of not more than 15 days, and impose a fine of not more than 50,000 yuan on him or her solely or jointly, and if the illegal income is not less than 50,000 yuan, impose a fine of not less than one time nor more than five times the illegal income on him or her solely or jointly, and the relevant department may take disciplinary actions against him or her in accordance with the law. ??

Whoever, although knowing that another person commits espionage, provides support or assistance in terms of information, funds, materials, labor services, technology, and site, among others, or harbors or shields the espionage, which does not constitute a crime, shall be punished in accordance with the provisions of the preceding paragraph.

Where an entity commits any conduct as mentioned in the preceding two paragraphs, the national security authority shall give it a warning and impose a fine of not more than 500,000 yuan on it solely or jointly, and if the amount of illegal income is not less than 500,000 yuan, impose a fine of not less than one time nor more than five times the illegal income on the entity solely or jointly, and punish its directly responsible executive in charge and other directly liable persons in accordance with the provision of paragraph 1.

A national security authority may, in light of the circumstances and consequences of the violation of the law committed by the relevant entity or employee, suggest the appropriate department order the violator to stop engaging in the relevant business, provide relevant services, order the suspension of production or business operation, revoke the relevant certificate or license, or revoke the registration. The appropriate department shall report the information on administrative disposition to the national security authority in a timely manner.

Article 27 (Paragraph 2/2) Whoever commits espionage but voluntarily surrenders or has any meritorious act may be subject to a lighter or mitigated punishment or be exempted from punishment; and those with major meritorious acts shall be rewarded.

Article 28 Whoever joins a hostile or espionage organization abroad under duress or inducement to engage in activities compromising the national security of the People's Republic of China but honestly states the fact to a mission of the People's Republic of China abroad in a timely manner or, after his or her return from abroad, honestly states the fact directly or through his or her employer to a national security authority or a public security authority in a timely manner and shows repentance may be exempted from legal liability.

Article 55 Whoever commits espionage but voluntarily surrenders or has any meritorious act may be subject to a lighter or mitigated punishment or be exempted from punishment; and those with major meritorious acts shall be rewarded. ??

Whoever joins an espionage or hostile organization abroad under duress or inducement to engage in activities compromising the national security of the People's Republic of China but honestly states the fact to a mission of the People's Republic of China abroad in a timely manner or, after his or her return from abroad, honestly states the fact directly or through his or her employer to a national security authority in a timely manner and shows repentance may be exempted from legal liability.

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Article 56 Where a state organ, people's group, enterprise, public institution, or any other social organization fails to perform its counterespionage security protection obligation in accordance with the provisions of this Law, the national security authority may order it to take corrective action; and if it fails to take corrective action as required, the national security authority may hold an interview with the relevant person in charge, and when necessary, notify the information on the interview to the appropriate department of the entity at the higher level. If such an act causes harmful consequences or adverse impact, the national security authority may give it a warning or circulate a notice of criticism; and if the circumstances are serious, the relevant department may take disciplinary actions against the responsible leader and directly liable persons in accordance with the law.

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Article 57 Where anyone engages in a new construction, reconstruction, or expansion project in violation of the provisions of Article 21 of this Law, the national security authority shall order it to take corrective action and give it a warning; and if it refuses to take corrective action or the circumstances are serious, order it to suspend the construction or use of the project, suspend or revoke the permit, or suggest the appropriate department handle the matter in accordance with the law.

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Article 58 Where anyone violates the provisions of Article 41 of this Law, the national security authority shall order it to take corrective action, give it a warning, or circulate a notice of criticism; and if it refuses to take corrective action or the circumstances are serious, the appropriate department shall punish the violator in accordance with the relevant laws and regulations.

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Article 59 Any party that violates this Law and refuses to cooperate with the relevant data access shall be punished by the national security authority in accordance with the relevant provisions of the Data Security Law of the People's Republic of China.

Article 29 Whoever, knowing any other person's commission of a crime of espionage, refuses to provide relevant information or evidence when a national security authority investigates or collects relevant evidence shall be subject to a disciplinary action taken by his or employer or the competent department at a higher level, or be subject to administrative detention of not more than 15 days imposed by the national security authority; or if it constitutes a crime, the offender shall be subject to criminal liability in accordance with the law.

Article 30 Whoever, by violence or threat, obstructs a national security authority from legally executing a task shall be subject to criminal liability in accordance with the law. ?

Whoever intentionally obstructs a national security authority from legally executing a task, without resort to violence or threat, shall be subject to criminal liability in accordance with the law if the consequences are serious; or if the circumstances are relatively minor, be subject to administrative detention of not more than 15 days imposed by the national security authority.

Article 31 Whoever divulges any state secret involving counterespionage shall be subject to administrative detention of not more than 15 days imposed by the national security authority; or if it constitutes a crime, be subject to criminal liability in accordance with the law.

Article 33 Whoever conceals, transfers, sells, damages or destroys any property legally seized, impounded or frozen by the national security authority, or knowingly harbors, transfers, purchases, sells as an agent or otherwise disguises or conceals any property involved in espionage, if it constitutes a crime, shall be subject to criminal liability in accordance with the law. The property shall be recovered by the national security authority.

Article 60 Whoever commits any of the following conduct in violation of the provisions of this Law shall be held criminally liable in accordance with the law if it constitutes a crime; or if it does not constitute a crime, shall be subject to a warning or administrative detention of not more than 15 days 10 days imposed by the national security authority, and may be fined not more than 30,000 yuan. ?

(1) Divulging any state secret involving the espionage work.

(2) Although knowing any other person's commission of a crime of espionage, refusing to provide relevant information or evidence when a national security authority investigates the relevant information or collects the relevant evidence.

(3) By violence or threat, Intentionally obstructing the national security authority from executing a task in accordance with the law.

(4) Concealing, transferring, selling, destroying, or damaging any property legally seized, impounded, or frozen by the national security authority.

(5) Knowingly harboring, transferring, purchasing, selling as an agent, or otherwise disguising or concealing any property involved in espionage.

(6) Retaliating against any individual or organization supporting or assisting in the work of the national security authority in accordance with the law.

Article 32 A national security authority may legally search the body, belongings, residence and other relevant places of a person who illegally holds any document, material or other item classified as a state secret or illegally holds or uses any specialized espionage equipment; and shall confiscate such document, material or item or such specialized espionage equipment. Whoever illegally holds any document, material or other item classified as a state secret, if it constitutes a crime, shall be subject to criminal liability in accordance with the law; or if it does not constitute a crime, be subject to a warning or administrative detention of not more than 15 days imposed by the national security authority.

Article 61 Whoever illegally obtains or holds any document, data, material, or item classified as a state secret or illegally produces, sells, holds, or uses specialized espionage equipment, shall be subject to a warning or administrative detention of not more than 15 days 10 days imposed by the national security authority if it does not constitute a crime.

Article 36 The national security authority shall appropriately preserve the property seized, impounded or frozen in accordance with this Law, and deal with such property according to the following provisions: ?

(1) It shall deal with such property in accordance with the provisions of the Criminal Procedure Law, if it may be involved in a crime.

(2) It shall confiscate or destroy the property as legally required, if the illegal act does not constitute a crime.

(3) It shall remove the seizure, impoundment or freeze measure and return the relevant property in a timely manner, if there is no illegal act or the property is irrelevant to the case; and make compensation for any losses caused in accordance with the law.

All property confiscated by the national security authority shall be turned over to the state treasury.

Article 62 The national security authority shall appropriately preserve the property seized, impounded, or frozen in accordance with this Law, and deal with such property according to the following circumstances: ??

(1) It shall deal with such property in accordance with the provisions of the Criminal Procedure Law of the People's Republic of China and other relevant laws, if it may be involved in a crime.

(2) It shall confiscate or destroy the property as legally required, if the illegal act does not constitute a crime.

(3) It shall remove the seizure, impoundment, or freeze measure and return the relevant property in a timely manner, if there is no illegal act or the property is irrelevant to the case; and make compensation for any loss caused in accordance with the law.

All property confiscated by the national security authority shall be turned over to the state treasury.

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Article 63 Where the property involved in a case falls under any of the following circumstances, it shall be legally recovered and confiscated, or measures shall be taken to eliminate hidden risks:

(1) The property illegally obtained and the fruits and proceeds thereof, and the property of the person used for committing espionage.

(2) Illegally obtained or held documents, data, materials, and items that are classified as state secrets.

(3) Illegally produced, sold, held, or used specialized espionage equipment.

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Article 64 The national security authority shall, in accordance with the law, recover or confiscate all the interests obtained by an actor, his or her close relative, or any other relevant person from an espionage organization or its agent for the actor's espionage.

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Article 65 All fines and property confiscated in accordance with the law by the national security authority shall be turned over to the state treasury.

Article 34 A foreign national who violates this Law may be ordered to leave the People's Republic of China during a specified period or be deported.

Article 66 The national security department of the State Council may decide to order a foreign national who violates this Law to leave China during a specified period or deport him or her, and determine the period during which the person shall not enter China. Whoever fails to leave China within the specified period may be repatriated. ??

The foreign national who commits any violation of this Law and is deported based on the decision of the national security department of the State Council shall not be allowed to enter China within ten years from the date of deportation. The punishment decision made by the national security department of the State Council shall be final.

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Article 67 When a national security authority makes an administrative punishment decision, it shall inform the parties of the content of the administrative punishment to be given, and the facts, grounds, and basis therefor, and notify the parties of their lawful rights to make statements, arguments, and request a hearing, among others, and implement the decision in accordance with the relevant provisions of the Administrative Punishment Law of the People's Republic of China.

Article 35 Against an administrative punishment decision or a decision to take an administrative compulsory measure, a party may, within 60 days of receipt of the written decision, apply for reconsideration to the authority immediately higher than the authority that made the decision; and may file a lawsuit with the people's court against the reconsideration decision within 15 days of receipt of the written reconsideration decision.

Article 68 Against an administrative punishment decision, a decision to take an administrative compulsory measure, or an administrative licensing decision, a party may, within 60 days of receipt of the written decision, apply for reconsideration in accordance with the law; and may institute an action with the people's court against the reconsideration decision within 15 days of receipt of the written reconsideration decision.

Article 37 Where any employee of a national security authority abuses power, neglects duty, practices favoritism or makes falsifications, which constitutes a crime, or conducts false imprisonment, extorts confessions by torture, collects evidence by violence, or divulges any state secret, trade secret or individual privacy in violation of the relevant provisions, among others, which constitutes a crime, the employee shall be subject to criminal liability in accordance with the law.

Article 69 Where any staff member of a national security authority abuses power, neglects duty, practices favoritism or makes falsifications, or conducts false imprisonment, extorts confessions by torture, collects evidence by violence, or divulges any state secret, work secret, trade secret, individual privacy, or personal information in violation of the relevant provisions, among others, disciplinary actions shall be taken against the staff member in accordance with the law, and if it is criminally punishable, the staff member shall be held criminally liable in accordance with the law.

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Chapter VI Supplemental Provisions

Article 39 The performance of duty by national security authorities and public security authorities in preventing, frustrating and punishing activities that compromise national security other than espionage in accordance with laws, administrative regulations and other relevant provisions of the state shall be governed by the relevant provisions of this Law.

Article 70 The relevant provisions of this Law shall apply to the performance of duties of preventing, frustrating, and punishing the acts compromising national security other than espionage by national security authorities in accordance with the applicable laws, administrative regulations, and the relevant provisions issued by the state.

The relevant provisions of this Law shall apply if a public security authority discovers and punishes any act compromising national security in the performance of its duties in accordance with the law.

Article 40 This Law shall come into force on the date of issuance. The National Security Law of the People's Republic of China as adopted at the 30th Session of the Standing Committee of the Seventh National People's Congress on February 22, 1993, shall be repealed concurrently.

Article 71 This Law shall come into force on July 1, 2023.

Footnote

1. We have adjusted the sequence order of Before Version, to parallel with the content of After Version.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.