China Expands State Secrets Law to Enhance National Security
China has recently strengthened its national security measures by broadening the scope of its state secrets law to include a new category called “work secrets.” This move comes as Chinese President Xi Jinping signed an order to formally adopt revisions to the existing law on “Guarding State Secrets.” These revisions, set to take effect on May 1, aim to enhance the protection of state secrets by incorporating precautions that also apply to unclassified information known as work secrets.
The law defines work secrets as information that, if leaked, would have an adverse impact. However, experts have expressed concerns that this broad definition could limit the public’s right to know and potentially expose individuals to liability. Jeremy Daum, a senior fellow at Yale Law School’s Paul Tsai China Center, highlighted that there is a risk of overzealous identification of matters as work secrets by individual departments. Such ambiguity could pose challenges for foreign businesses operating in China.
China has often been criticized for its lack of transparency, and this expansion of the state secrets law further adds to the uncertainty. The country has previously left catch-all phrases, like “state secrets,” open to interpretation by authorities. Moreover, there is still no formal clarity on what qualifies as “important data” and is subject to export restrictions for foreign businesses in China. This lack of clarity creates an unquantified risk for foreign businesses operating in China.
Foreign businesses have expressed concerns about the lack of clarity and the potential unintentional infringement of secret information. However, they have generally chosen to remain in China despite these challenges.
The revised state secrets law reflects China’s growing national security concerns. Both Beijing and Washington have recently cited national security risks when announcing new restrictions for businesses. Gabriel Wildau, managing director at consulting firm Teneo, highlighted that the Chinese leadership’s preoccupation with national security has made the country’s operating environment more difficult. While China’s economic growth outlook remains a crucial factor influencing foreign investment decisions, the state secrets law serves as an additional disincentive.
The law classifies state secrets as information that, if leaked, could harm China’s security and interests in various fields such as politics, economics, national defense, foreign affairs, and technology. The law also imposes restrictions on overseas travel for individuals who have worked with state secrets. These measures aim to provide a strong legal guarantee for better protecting China’s national sovereignty, security, and development interests.
Experts have emphasized that the new revisions primarily update the law to address advancements in technology and changes in style. The law clarifies certain aspects, limits leadership liability in some cases, and provides compensation for individuals whose rights have been limited due to secrecy requirements.
As China continues to prioritize national security, the final version of the state secrets law underscores the government’s commitment to maintaining confidentiality while disclosing information that should be made public. The law’s revisions demonstrate China’s efforts to safeguard its interests and ensure a secure operating environment.