Abstract

Digital technologies can help China unlock meaningful improvements in economic growth and development.  However, there is growing concern that as China’s individuals and small firms embrace the digital economy, they are facing cyber security threats beyond their capabilities.  The risk is greatest in areas that will see wide adoption like the Internet of Things.  China’s future prosperity will depend on the steps it takes to strengthen cybersecurity for its citizens and small- and medium-sized enterprises (SMEs).  

A review of efforts by the European Union, Germany, Canada and others, shows a need to provide detailed guidelines specifically for SMEs. The history of the automobile demonstrates that to be effective, security standards for widely used technology such as the Internet of Things (IoT) should be easy-to-use and embedded in product design. Similarly, various industry consortia have and are succeeding because of a commitment to building open, flexible, and interoperable standards. 

China’s new Cyber security Law covers important safety and security issues, but would benefit from enhanced guidance on:(1) standards for data security and identity authentication, especially for IoT; and (2) capacity-building for individuals and SMEs.The private sector can be a strong partner, provided China’s cyber security framework promotes common standards, interoperability, and multi-stakeholder collaboration.