The Cybersecurity Law of the People's Republic of China ( Chinese : 中华人民共和国网络安全法 ), commonly referred to as the Chinese Cybersecurity Law , was enacted by the National People’s Congress with the aim of increasing data protection, data localization , and cybersecurity ostensibly in the interest of national security. The law is part of a wider series of laws passed by the Chinese government in an effort to strengthen national security legislation. Examples of which since 2014 have included the data security law , the national intelligence law , the national security law , laws on counter-terrorism and foreign NGO management, all passed within successive short timeframes of each other.
91-462: Chinese policymakers became increasingly concerned about the risk of cyberattacks following the 2010s global surveillance disclosures by Edward Snowden , which demonstrated extensive United States intelligence activities in China . The Cybersecurity Law was part of China's response following policymakers' heightened concerns of foreign surveillance and data collection after these disclosures. This law
182-558: A DA-Notice . In November 2013, a criminal investigation of the disclosure was undertaken by Britain's Metropolitan Police Service . In December 2013, The Guardian editor Alan Rusbridger said: "We have published I think 26 documents so far out of the 58,000 we've seen." The extent to which the media reports responsibly informed the public is disputed. In January 2014, Obama said that "the sensational way in which these disclosures have come out has often shed more heat than light" and critics such as Sean Wilentz have noted that many of
273-535: A Pulitzer Prize –winning journalist who led The Washington Post ' s coverage of Snowden's disclosures, summarized the leaks as follows: Taken together, the revelations have brought to light a global surveillance system that cast off many of its historical restraints after the attacks of Sept. 11, 2001 . Secret legal authorities empowered the NSA to sweep in the telephone, Internet and location records of whole populations. The disclosure revealed specific details of
364-540: A " team sport ". The CIA 's National Counterterrorism Center is allowed to examine federal government files for possible criminal behavior, even if there is no reason to suspect U.S. citizens of wrongdoing. Previously the NTC was barred to do so, unless a person was a terror suspect or related to an investigation. Snowden also confirmed that Stuxnet was cooperatively developed by the United States and Israel. In
455-562: A 30-day period ending in March 2013. Out of all 97 billion sets of information, about 3 billion data sets originated from U.S. computer networks and around 500 million metadata records were collected from German networks. In August 2013, it was revealed that the Bundesnachrichtendienst (BND) of Germany transfers massive amounts of metadata records to the NSA. Der Spiegel disclosed that out of all 27 member states of
546-475: A former director of GCHQ , described Snowden's disclosure as the "most catastrophic loss to British intelligence ever". Snowden obtained the documents while working for Booz Allen Hamilton , one of the largest contractors for defense and intelligence in the United States. The initial simultaneous publication in June 2013 by The Washington Post and The Guardian continued throughout 2013. A small portion of
637-512: A former director of GCHQ, described Snowden's disclosure as the "most catastrophic loss to British intelligence ever". In April 2012, NSA contractor Edward Snowden began downloading documents. That year, Snowden had made his first contact with journalist Glenn Greenwald , then employed by The Guardian , and he contacted documentary filmmaker Laura Poitras in January 2013. In May 2013, Snowden went on temporary leave from his position at
728-466: A pedestrian. Here, the employer could still be liable for these damages because the detour was minor. An employer can also be liable for a legal principle called negligent hiring. This happens when in the process of hiring a new employee, the employer does not check criminal pasts, backgrounds, or references to ensure the applicant did not pose a potential danger if hired as an employee. An employer can also face liability and repercussions if they know that
819-425: A plaintiff and defendant who furnishes defective goods that caused loss or injury 11 . Product liability and its prevalence in the law has changed throughout history. In the 19th century, it worked to both the manufacturers' and other sellers' advantages. "Caveat emptor" ("let the buyer beware") reigned supreme in this area of the law. In this era, the seller had no liability unless they had made an express promise to
910-408: A potential danger. It is important for employers to note whether someone working for them is an independent contractor or an employee. An employee is someone who is a paid worker for the employer. An independent contractor, on the other hand, contracts with a principal to produce a result and in the process, gets to determine how that result will be completed. The difference lies in how much control
1001-401: A reasonable warning to the customer when the product has a foreseeable risk of harm, and/or the design lends itself to risk of harm. The magnitude and severity of the foreseeable harm are also assessed when looking at negligence. There is a form of liability that exists between employers and their employees. This is called vicarious liability . For it to apply, one party has responsibility for
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#17327831413971092-452: A report unrelated to Edward Snowden, the French newspaper Le Monde revealed that France's DGSE was also undertaking mass surveillance, which it described as "illegal and outside any serious control". Documents leaked by Edward Snowden that were seen by Süddeutsche Zeitung (SZ) and Norddeutscher Rundfunk revealed that several telecom operators have played a key role in helping
1183-799: A surveillance network that has the capacity to reach roughly 75% of all U.S. Internet traffic. U.S. Law-enforcement agencies use tools used by computer hackers to gather information on suspects. An internal NSA audit from May 2012 identified 2776 incidents i.e. violations of the rules or court orders for surveillance of Americans and foreign targets in the U.S. in the period from April 2011 through March 2012, while U.S. officials stressed that any mistakes are not intentional. Legal liability In law , liable means "responsible or answerable in law; legally obligated". Legal liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts , torts , taxes , or fines given by government agencies . The claimant
1274-403: A third party to reasonably assume that the agent can act in a certain way and create contracts with the third party on behalf of the principal. To determine if an agent is liable for a contract, one must look at the type of principal. There are four types of principals. A disclosed principal is known to the third party, and the third party knows that the agent is acting for this principal. The agent
1365-463: A third party, and the third party commits an unlawful action. An employer may be held liable for the actions of an employee if it is unlawful (i.e. harassment or discrimination), or the employee's negligent actions while working causes damages to property or injury. Respondeat superior ("Let the superior answer") is a legal principle that dictates when an employer is responsible for the actions of an employee. Employers should worry about this rule when
1456-577: Is also in a partnership with British, American and Singaporean intelligence agencies to tap undersea fibre optic telecommunications cables that link Asia, the Middle East and Europe and carry much of Australia's international phone and internet traffic. The U.S. runs a top-secret surveillance program known as the Special Collection Service (SCS), which is based in over 80 U.S. consulates and embassies worldwide. The NSA hacked
1547-414: Is also seen as a move by Beijing to bring data under Chinese jurisdiction and make it easier to prosecute entities seen as violating China's internet laws. The president of AmCham South China, Harley Seyedin, claimed that foreign firms are facing “mass concerns” because the law has greatly increased operating costs and has had a big impact on how business is done in China. More specifically, he stated that
1638-523: Is an evolution of the previously existent cybersecurity rules and regulations from various levels and fields, assimilating them to create a structured law at the macro-level. The law also offers principal norms on certain issues that are not immediately urgent but are of long-term importance. These norms will serve as a legal reference when new issues arise. The law is a significant pillar of the Chinese data regulatory environment. It: The cybersecurity law
1729-436: Is an exception to this rule, however, which allows a claimant to litigate against the owner(s) of a limited liability business, if the owner(s) have engaged in conduct that justifies the claimant's recovery from the owner(s): This exception is called " piercing the corporate veil ." Courts generally try not to utilize this exception unless there have been serious transgressions. Limited liability aids entrepreneurs, businesses, and
1820-621: Is applicable to network operators and businesses in critical sectors . By critical sectors, China roughly divides the domestic businesses into networking businesses that are involved in telecommunications, information services, energy transport, water, financial services, public services, and electronic government services. Some of the most controversial sections of the law include articles 28, 35, and 37. Article 28 compels vaguely defined "network operators", (interpreted to include: social media platforms, application creators and other technology companies), to cooperate with public security organs such as
1911-704: Is discussed in more detail in the following section. Errors/omissions is another category where a lawsuit can result from a mistake on the part of the company such as in a contract or paperwork. Finally, the last major category relates to holding directors and officers personally liable for actions taken by the company, as seen in piercing the corporate veil. Overall, as businesses get larger and more successful, their chances of liability lawsuits increase, but small businesses are not completely immune to them. Entrepreneurs and business owners need to be aware of these types of liability exposures to ensure their businesses are protected. Product liability governs civil lawsuits between
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#17327831413972002-539: Is employment-related issues where the larger the work force, and the more turnover there is, the larger the likelihood of liability lawsuits such as wrongful termination claims. Another area is accidents and/or injuries on the premises. Next, vehicle-related liability if employees are allowed to drive company cars since this could lead to accidents while they use the company cars. Product-related liability (also called manufacturer's liability) details poor manufacturing of products that results in injuries and/or accidents, which
2093-405: Is not liable on authorized contracts made for a disclosed principal since all parties are aware of the contract and who is participating in the contract. An unidentified principal is seen when the third party knows the agent is acting for a principal but lacks knowledge on the principal's identity. The agent is typically liable for contracts made for an unidentified principal. An undisclosed principal
2184-437: Is seen when the third party does not know the principal's existence and identity and reasonably believes the agent is the other party in the contract. In this instance, the agent can be held liable for the contract. A nonexistent principal refers to when an agent knowingly acts for principal that does not exist, such as an unincorporated association. The agent is liable here if they knew the principal had no capacity to take part in
2275-439: Is the one who seeks to establish, or prove, liability. In commercial law , limited liability is a method of protection included in some business formations that shields its owners from certain types of liability and that amount a given owner will be liable for. A limited liability form separates the owner(s) from the business. The limited liability form essentially acts as a corporate veil that protects owners from liabilities of
2366-494: Is used by the NSA and the other is used by NATO forces in Afghanistan . The two programs are "not identical". The Guardian revealed further details of the NSA's XKeyscore tool, which allows government analysts to search through vast databases containing emails, online chats and the browsing histories of millions of individuals without prior authorization. Microsoft "developed a surveillance capability to deal" with
2457-820: The Cyberspace Administration of China issued "Regulations on the Management of Security Vulnerabilities in Network Products" requiring that all vulnerabilities be reported to the Ministry of Industry and Information Technology (MIIT) and prohibits the public disclosure of vulnerabilities, including to overseas organizations. Along with the Great Firewall , restrictions stipulated in the law have raised concerns, especially from foreign technology companies operating in China. Regarding
2548-547: The Guardian ' s defence and intelligence correspondent Ewen MacAskill would fly to Hong Kong to meet Snowden. On June 5, in the first media report based on the leaked material, The Guardian exposed a top secret court order showing that the NSA had collected phone records from over 120 million Verizon subscribers . Under the order, the numbers of both parties on a call, as well as the location data, unique identifiers, time of call, and duration of call were handed over to
2639-621: The Ministry of Public Security and hand over information when requested. Article 28: Network operators shall provide technical support and assistance to public security organs and national security organs that are safeguarding national security and investigating criminal activities in accordance with the law. Article 35 is targeted at purchases of foreign software or hardware by government agencies or other "critical information infrastructure operators", requiring any hardware of software purchased to undergo review by agencies such as China's SCA or State Cryptography Administration, potentially involving
2730-758: The United Nations Headquarters in New York. During specific episodes within a four-year period, the NSA hacked several Chinese mobile-phone companies, the Chinese University of Hong Kong and Tsinghua University in Beijing, and the Asian fiber-optic network operator Pacnet . Only Australia, Canada, New Zealand and the UK are explicitly exempted from NSA attacks, whose main target in
2821-594: The 1970s, NSA analyst Perry Fellwock (under the pseudonym "Winslow Peck") revealed the existence of the UKUSA Agreement , which forms the basis of the ECHELON network, whose existence was revealed in 1988 by Lockheed employee Margaret Newsham. Months before the September 11 attacks and during its aftermath, further details of the global surveillance apparatus were provided by various individuals such as
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2912-575: The 2010s, international media reports revealed new operational details about the Anglophone cryptographic agencies' global surveillance of both foreign and domestic nationals. The reports mostly relate to top secret documents leaked by ex- NSA contractor Edward Snowden . The documents consist of intelligence files relating to the U.S. and other Five Eyes countries. In June 2013, the first of Snowden's documents were published, with further selected documents released to various news outlets through
3003-528: The BND turned over copies of two systems named Mira4 and Veras, reported to exceed the NSA's SIGINT capabilities in certain areas. Every day, massive amounts of metadata records are collected by the BND and transferred to the NSA via the Bad Aibling Station near Munich , Germany. In December 2012 alone, the BND handed over 500 million metadata records to the NSA. In a document dated January 2013,
3094-889: The British intelligence agency Government Communications Headquarters (GCHQ) tap into worldwide fiber-optic communications . The telecom operators are: Each of them were assigned a particular area of the international fiber-optic network for which they were individually responsible. The following networks have been infiltrated by GCHQ: TAT-14 (EU-UK-US), Atlantic Crossing 1 (EU-UK-US), Circe South (France-UK), Circe North (Netherlands-UK), Flag Atlantic-1 , Flag Europa-Asia , SEA-ME-WE 3 (Southeast Asia-Middle East-Western Europe), SEA-ME-WE 4 (Southeast Asia-Middle East-Western Europe), Solas (Ireland-UK), UK-France 3, UK-Netherlands 14, ULYSSES (EU-UK), Yellow (UK-US) and Pan European Crossing (EU-UK). Telecommunication companies who participated were "forced" to do so and had "no choice in
3185-526: The European Union is Germany. A method of bugging encrypted fax machines used at an EU embassy is codenamed Dropmire . During the 2009 G-20 London summit , the British intelligence agency Government Communications Headquarters (GCHQ) intercepted the communications of foreign diplomats. In addition, GCHQ has been intercepting and storing mass quantities of fiber-optic traffic via Tempora . Two principal components of Tempora are called " Mastering
3276-486: The European Union, Germany is the most targeted due to the NSA's systematic monitoring and storage of Germany's telephone and Internet connection data. According to the magazine the NSA stores data from around half a billion communications connections in Germany each month. This data includes telephone calls, emails, mobile-phone text messages and chat transcripts. The NSA gained massive amounts of information captured from
3367-503: The FBI, which turned over the records to the NSA. According to The Wall Street Journal , the Verizon order is part of a controversial data program, which seeks to stockpile records on all calls made in the U.S., but does not collect information directly from T-Mobile US and Verizon Wireless , in part because of their foreign ownership ties. On June 6, 2013, the second media disclosure,
3458-534: The Internet " (MTI) and " Global Telecoms Exploitation ". The data is preserved for three days while metadata is kept for thirty days. Data collected by GCHQ under Tempora is shared with the National Security Agency (NSA) of the United States. From 2001 to 2011, the NSA collected vast amounts of metadata records detailing the email and internet usage of Americans via Stellar Wind , which
3549-482: The NSA acknowledged the efforts of the BND to undermine privacy laws : The BND has been working to influence the German government to relax interpretation of the privacy laws to provide greater opportunities of intelligence sharing. According to an NSA document dated April 2013, Germany has now become the NSA's "most prolific partner". Under a section of a separate document leaked by Snowden titled "Success Stories",
3640-630: The NSA acknowledged the efforts of the German government to expand the BND's international data sharing with partners: The German government modifies its interpretation of the G-10 privacy law ... to afford the BND more flexibility in sharing protected information with foreign partners. In addition, the German government was well aware of the PRISM surveillance program long before Edward Snowden made details public. According to Angela Merkel's spokesman Steffen Seibert , there are two separate PRISM programs – one
3731-595: The NSA is responsible for these partnerships, which, according to Snowden, are organized such that foreign governments can "insulate their political leaders" from public outrage in the event that these global surveillance partnerships are leaked. In an interview published by Der Spiegel , Snowden accused the NSA of being "in bed together with the Germans". The NSA granted the German intelligence agencies BND (foreign intelligence) and BfV (domestic intelligence) access to its controversial XKeyscore system. In return,
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3822-657: The NSA with data from its cable collection , under a secret agreement signed in 1954 for bilateral cooperation on surveillance. Other security and intelligence agencies involved in the practice of global surveillance include those in Australia ( ASD ), Britain ( GCHQ ), Canada ( CSE ), Denmark ( PET ), France ( DGSE ), Germany ( BND ), Italy ( AISE ), the Netherlands ( AIVD ), Norway ( NIS ), Spain ( CNI ), Switzerland ( NDB ), Singapore ( SID ) as well as Israel ( ISNU ), which receives raw, unfiltered data of U.S. citizens from
3913-736: The NSA's close cooperation with U.S. federal agencies such as the Federal Bureau of Investigation (FBI) and the Central Intelligence Agency (CIA), in addition to the agency's previously undisclosed financial payments to numerous commercial partners and telecommunications companies, as well as its previously undisclosed relationships with international partners such as Britain, France, Germany, and its secret treaties with foreign governments that were recently established for sharing intercepted data of each other's citizens. The disclosures were made public over
4004-463: The NSA, citing the pretext of receiving treatment for his epilepsy . Toward the end of May, he traveled to Hong Kong. Greenwald, Poitras and The Guardian 's defence and intelligence correspondent Ewen MacAskill flew to Hong Kong to meet Snowden. After the U.S.-based editor of The Guardian , Janine Gibson , held several meetings in New York City, she decided that Greenwald, Poitras and
4095-604: The NSA. On June 14, 2013, United States prosecutors charged Edward Snowden with espionage and theft of government property . In late July 2013, he was granted a one-year temporary asylum by the Russian government, contributing to a deterioration of Russia–United States relations . Toward the end of October 2013, the British Prime Minister David Cameron warned The Guardian not to publish any more leaks, or it will receive
4186-514: The Snowden documents do not concern domestic surveillance. The US & British Defense establishment weigh the strategic harm in the period following the disclosures more heavily than their civic public benefit. In its first assessment of these disclosures, the Pentagon concluded that Snowden committed the biggest "theft" of U.S. secrets in the history of the United States . Sir David Omand ,
4277-633: The United Nations' video conferencing system in Summer 2012 in violation of a UN agreement. The NSA is not just intercepting the communications of Americans who are in direct contact with foreigners targeted overseas, but also searching the contents of vast amounts of e-mail and text communications into and out of the country by Americans who mention information about foreigners under surveillance. It also spied on Al Jazeera and gained access to its internal communications systems. The NSA has built
4368-523: The business's debts. This can include seizure of personal assets in the face of bankruptcy and liquidation. Professionals in limited liability partnerships and limited liability companies will have unlimited liability for their own torts and malpractices. The limited liability of the business will no longer apply for these wrongdoings. For business owners, there are main categories of liability exposure to be aware of in order to protect their businesses from liability and financial troubles and issues. The first
4459-470: The business. This means that when a business is found liable in a case, the owners are not themselves liable; rather, the business is. Thus, only the funds or property the owner(s) have invested into the business are subject to that liability. If, for example, a limited liability business goes bankrupt , then the owner(s) will not lose unrelated assets, such as a personal residence (assuming they do not give personal guarantees ). Forms of businesses that offer
4550-503: The capability to surveil undersea fiber-optic cables which deliver e-mails, Web pages, other electronic communications and phone calls from one continent to another at the speed of light. According to the Brazilian newspaper O Globo , the NSA spied on millions of emails and calls of Brazilian citizens, while Australia and New Zealand have been involved in the joint operation of the NSA's global analytical system XKeyscore . Among
4641-448: The contract even if the third party knows that the principal does not exist. An agent can also bind themselves to contracts by expressly agreeing to be liable. To avoid this, agents should make no express promises in their own name and should make sure the contract only obligates the principal. An agent may also be liable to a third party if they lack the authority to contract for a principal. The agent may escape liability in this scenario if
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#17327831413974732-600: The course of several months since June 2013, by the press in several nations from the trove leaked by the former NSA contractor Edward J. Snowden, who obtained the trove while working for Booz Allen Hamilton . George Brandis , the Attorney-General of Australia , asserted that Snowden's disclosure is the "most serious setback for Western intelligence since the Second World War ." As of December 2013 , global surveillance programs include: The NSA
4823-484: The customer that was not received. The 19th century was also when the Industrial Revolution was beginning and changing the business world. In order to promote this rise in industrialization and manufacturing, the law avoided allowing damage recoveries that would weaken new industries. In the 20th and 21st centuries, there was no longer this need to protect manufacturers from liability. If anything, there
4914-691: The cyber security law continues to create “uncertainties within the investment community, and it’s resulting in, at the minimum, postponement of some R&D investment.” The law was widely criticized for limiting freedom of speech . For example, the law explicitly requires most online services operating in China to collect and verify the identity of their users, and, when required to, surrender such information to law enforcement without warrant. Activists have argued this policy dissuades people from freely expressing their thoughts online, further stifling dissent by making it easier to target and surveil dissidents. 2010s global surveillance disclosures During
5005-683: The cybersecurity law. By incorporating preexisting laws on VPN and data security into the cybersecurity law, the Chinese government reinforces its control in addition to emphasize has the need for foreign companies to comply with domestic regulations. The cybersecurity law also provides regulations and definitions on legal liability . For different types of illegal conduct, the law sets a variety of punishments, such as fines, suspension for rectification, revocation of permits and business licenses, and others. The Law accordingly grant cybersecurity and administration authorities with rights and guidelines to carry out law enforcement on illegal acts. In July 2021,
5096-425: The economy in growing and innovating. Therefore, if courts often chose to pierce the veil, that innovation would be restricted. The exact test a court will use to determine if the veil needs to pierced vary by state in the United States. For sole proprietorships and general partnerships, the liability is unlimited. Unlimited liability means that the owner(s) of the business have the full responsibility of assuming all
5187-459: The employee commits a tort or harmful act when the employee was acting within the course and scope of employment at the time of the incident. The term " scope of employment " is when an employee is doing work assigned by their employer or is completing a task that is subject to the employer's control. To test whether the conduct that led to the incident is within the scope of employment, one must determine: If these four factors are found to be true,
5278-405: The employer will have to answer for the tort. The reasoning behind this legal principle is because it is thought that the employer is best suited for bearing the financial burden, employers can protect themselves against this burden with insurance, and the cost can be passed to customers by raising prices. On the other hand, if the employee was found to have either detoured or frolicked then defining
5369-528: The entire European internet traffic. GCHQ is collecting all data transmitted to and from the United Kingdom and Northern Europe via the undersea fibre optic telecommunications cable SEA-ME-WE 3 . The Security and Intelligence Division (SID) of Singapore co-operates with Australia in accessing and sharing communications carried by the SEA-ME-WE-3 cable. The Australian Signals Directorate (ASD)
5460-704: The estimated full cache of documents was later published by other media outlets worldwide, most notably The New York Times (United States), the Canadian Broadcasting Corporation , the Australian Broadcasting Corporation , Der Spiegel (Germany), O Globo (Brazil), Le Monde (France), L'espresso (Italy), NRC Handelsblad (the Netherlands), Dagbladet (Norway), El País (Spain), and Sveriges Television (Sweden). Barton Gellman ,
5551-453: The extent of their liability can change based on the agreements their agents make. An agent is a person who has the power to act on behalf of another party (typically the principal). Usually, a principal is liable for a contract made by the agent if the agent had actual or apparent authority to make the contract. Actual authority is the ability an agent has to pursue and complete certain activities based on communication and manifestations from
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#17327831413975642-420: The former MI5 official David Shayler and the journalist James Bamford , who were followed by: In the aftermath of Snowden's revelations, The Pentagon concluded that Snowden committed the biggest theft of U.S. secrets in the history of the United States . In Australia, the coalition government described the leaks as the most damaging blow dealt to Australian intelligence in history. Sir David Omand ,
5733-426: The help of insurance and socializing the damages by raising prices and forcing the consumer to pay for it. If a manufacturer is found to be negligent , that means they breached their duty to the customer by not eliminating a reasonably foreseeable risk caused by the product. The manufacturer can be seen as negligent if there are problems in the manufacturing process, do not properly inspect their products, do not give
5824-421: The interception of encrypted chats on Outlook.com , within five months after the service went into testing. NSA had access to Outlook.com emails because "Prism collects this data prior to encryption." In addition, Microsoft worked with the FBI to enable the NSA to gain access to its cloud storage service SkyDrive . An internal NSA document dating from August 3, 2012, described the PRISM surveillance program as
5915-673: The law could force companies transmitting data through servers in China to submit to data surveillance and espionage. Some analysts from Western backgrounds consider this law to be comparable to the EU's GDPR . They have suggested that the law could improve the Chinese government’s ability to monitor the public, as well as giving Chinese companies an advantage over foreign companies. The law sparked concerns both domestically and internationally due to its phrasing and specific requirements. Foreign companies and businesses in China expressed concerns that this law might impede future investments in China, since
6006-443: The law have stated that the intention of the law is not to prohibit foreign businesses from operating in China, or boost domestic Chinese competitiveness. A study by Matthias Bauer and Hosuk Lee-Makiyama in 2015, states that data localization causes minor damage to economic growth due to inefficiencies that arise from data transfer processes and the duplication of data between several jurisdictions. The requirement for data localization
6097-572: The law or partner with service providers such as Huawei , Tencent , or Alibaba , which have already have server infrastructure on the ground, saving capital expenditure costs for companies. The law is widely seen to be in line with 12th Five-Year Plan (2011–2015) which aims to create domestic champions in industries such as cloud computing and big data processing. The law is seen as a boon to domestic companies and has been criticized as creating an unfair playing ground against international technology companies such as Microsoft and Google . Supporters of
6188-453: The law requires them to "store their data on Chinese-law regulated local servers, and cooperate with Chinese national security agencies". Since its inception many foreign technology companies have already complied with the law. Apple for example, announced in 2017 that it would invest $ 1 billion in partnership with local cloud computing company Guizhou Cloud Big Data or GCBD to construct a new data center located in China's Guizhou province for
6279-404: The limited liability protection include limited liability partnerships , limited liability companies , and corporations . Sole proprietorships and partnerships do not include limited liability. This is the standard model for larger businesses, in which a shareholders will only lose the amount invested (in the form of stock value decreasing). For an explanation, see business entity . There
6370-465: The matter". Some of the companies were subsequently paid by GCHQ for their participation in the infiltration of the cables. According to the SZ, GCHQ has access to the majority of internet and telephone communications flowing throughout Europe, can listen to phone calls, read emails and text messages, see which websites internet users from all around the world are visiting. It can also retain and analyse nearly
6461-833: The monitored data traffic in Europe. For example, in December 2012, the NSA gathered on an average day metadata from some 15 million telephone connections and 10 million Internet datasets. The NSA also monitored the European Commission in Brussels and monitored EU diplomatic Facilities in Washington and at the United Nations by placing bugs in offices as well as infiltrating computer networks. The U.S. government made as part of its UPSTREAM data collection program deals with companies to ensure that it had access to and hence
6552-733: The necessary security clearance. Although the exact size of Snowden's disclosure remains unknown, the following estimates have been put up by various government officials: As a contractor of the NSA, Snowden was granted access to U.S. government documents along with top secret documents of several allied governments, via the exclusive Five Eyes network. Snowden claims that he currently does not physically possess any of these documents, having surrendered all copies to journalists he met in Hong Kong . According to his lawyer, Snowden has pledged not to release any documents while in Russia, leaving
6643-598: The network and the relevant implementing department for that sector. The law is composed of supportive subdivisions of regulations that specify the purpose of it. For instance, the Core Infrastructure Initiative (CII) Security Protection Regulations and Measures for Security Assessment of Cross-border Transfer of Personal Information and Important Data. However, the law is yet to be set in stone since China's government authorities are occupied with defining more contingent laws to better correspond with
6734-582: The numerous allied facilities contributing to XKeyscore are four installations in Australia and one in New Zealand: O Globo released an NSA document titled " Primary FORNSAT Collection Operations ", which revealed the specific locations and codenames of the FORNSAT intercept stations in 2002. According to Edward Snowden, the NSA has established secret intelligence partnerships with many Western governments . The Foreign Affairs Directorate (FAD) of
6825-498: The principal hired an incompetent agent, if harm resulted from nonemployee agent's failure to perform a duty of care that the principal bestowed on them (a duty of care is an action whose successful performance is so important that if it is delegated to an agent and not accomplished, the principal is still liable), and a principal is liable if the nonemployee agent did not take the correct precautions required to complete very dangerous activities. An employer should also be aware on how
6916-415: The principal. Express authority is when the principal clearly states what the agent has the authority to do while implied authority is based on what is reasonable to assume that the agent is allowed to do based on what the principal wants of the agent. Express and implied authority are both types of actual authority. The second type of authority is apparent authority. This occurs when a principal's actions lead
7007-405: The principal/employer can wield on the agent. Employees are subjected to more control while nonemployee agents, like independent contractors, have more freedom in how they do their job. A principal is not ordinarily liable for torts committed by nonemployee agents since the principal does not fully control the method of work done. However, there are exceptions to this. There can be direct liability if
7098-432: The provision source codes and other sensitive proprietary information to government agencies paving the way state theft of intellectual property or transmission to domestic competitors. Above all, the article creates further regulatory burdens for foreign technology companies operating in China, indirectly creating a more favourable playing field for domestic competitors which would naturally be more prepared to comply with
7189-639: The purposes of compliance. Simultaneously, the company also announced that it would transfer the operation and storage of iCloud data to mainland China. Microsoft also announced an expansion of its Azure services in partnership cloud computing company 21Vianet through investment in more servers. Meanwhile, online services, such as Skype and WhatsApp which refused to store their data locally and were either delisted from domestic app stores or restricted from further expansion. The law forces foreign technology and other companies operating within China to either invest in new server infrastructure in order to comply with
7280-859: The regulations. Article 35: Critical information infrastructure operators purchasing network products and services that might impact national security shall undergo a national security review organized by the State cybersecurity and informatization departments and relevant departments of the State Council. The law establishes stringent data localization requirements. The law is applicable to all businesses in China that manage their own servers or other data networks. Network operators are expected, among other things, to clarify cybersecurity responsibilities within their organization, take technical measures to safeguard network operations, prevent data leaks and theft, and report any cybersecurity incidents to both users of
7371-419: The requirements for spot-checks and certifications, international law firms have warned that companies could be asked to provide source code, encryption, or other crucial information for review by the authorities, increasing the risk of intellectual property theft , information being lost, passed on to local competitors, or being used by the authorities themselves. The Federal Bureau of Investigation warned that
7462-535: The responsibility for further disclosures solely to journalists. As of 2014, the following news outlets have accessed some of the documents provided by Snowden: Australian Broadcasting Corporation , Canadian Broadcasting Corporation , Channel 4 , Der Spiegel , El País , El Mundo , L'espresso , Le Monde , NBC , NRC Handelsblad , Dagbladet , O Globo , South China Morning Post , Süddeutsche Zeitung , Sveriges Television , The Guardian , The New York Times , and The Washington Post . In
7553-522: The revelation of the PRISM surveillance program (which collects the e-mail, voice, text and video chats of foreigners and an unknown number of Americans from Microsoft, Google, Facebook, Yahoo, Apple and other tech giants), was published simultaneously by The Guardian and The Washington Post . Der Spiegel revealed NSA spying on multiple diplomatic missions of the European Union and
7644-445: The scope of employment becomes trickier. The rule of frolic and detour changes how the liability applies. A frolic is when the employee causes a tort when completing an activity that is unrelated to their job. If it is found that the employee had frolicked, the employee would then be liable for damages. For example, if a delivery driver does not complete his deliveries for a few hours so he can do some personal shopping, and on his way to
7735-400: The store, he hits a pedestrian. A detour is more minor. The employee is still participating in a non-work related activity, but the activity is not a major disregard for work duties. An example of a detour would be if on the way to deliver a package, a delivery driver stops at a drive-thru to grab something to eat. When pulling away from the restaurant to continue with deliveries, the driver hits
7826-432: The worker poses a potential danger but keeps them on the job. This is called negligent retention. To avoid claims regarding negligent hiring or retention, employers should be diligent when hiring employees who will have a lot of contact with customers and the public (especially if they will have access to vulnerable members of the public, go to customers' homes, and/or have access to weapons), and dismiss any employees who pose
7917-678: The year. These media reports disclosed several secret treaties signed by members of the UKUSA community in their efforts to implement global surveillance . For example, Der Spiegel revealed how the German Federal Intelligence Service ( German : Bundesnachrichtendienst ; BND) transfers "massive amounts of intercepted data to the NSA", while Swedish Television revealed the National Defence Radio Establishment (FRA) provided
8008-461: Was also getting data directly from telecommunications companies code-named Artifice (Verizon), Lithium (AT&T), Serenade, SteelKnight, and X. The real identities of the companies behind these code names were not included in the Snowden document dump because they were protected as Exceptionally Controlled Information which prevents wide circulation even to those (like Snowden) who otherwise have
8099-556: Was enacted by the Standing Committee of the National People's Congress on November 7, 2016, and was implemented on June 1, 2017. It requires network operators to store select data within China and allows Chinese authorities to conduct spot-checks on a company's network operations. Cybersecurity is recognized as a basic law. This puts the law on the top of the pyramid-structured legislation on cybersecurity. The law
8190-497: Was later terminated due to operational and resource constraints. It was subsequently replaced by newer surveillance programs such as ShellTrumpet, which " processed its one trillionth metadata record " by the end of December 2012. The NSA follows specific procedures to target non-U.S. persons and to minimize data collection from U.S. persons. These court-approved policies allow the NSA to: According to Boundless Informant , over 97 billion pieces of intelligence were collected over
8281-499: Was more of need to impose liability standards on industries because consumers had less power to freely bargain with corporations and other business forms. Furthermore, the complexities and intricacies of goods was increasing, making it harder for the average buyer to determine manufacturing issues when purchasing these goods. Now a new phrase dominates liability: "caveat venditor" or "let the seller beware." The law finds that sellers and manufacturers can face more liability for defects with
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