London Daily

Focus on the big picture.
Saturday, May 31, 2025

China hopes cryptography law will provide security and profitability

China hopes cryptography law will provide security and profitability

Legislation paves the way for blockchain technologies but Beijing is determined national security will not be undermined.
China’s legislature passed a cryptography law on Saturday aimed at safeguarding national security while continuing to promote a rapidly growing encryption industry.

The cryptography law was endorsed by the Standing Committee of the 13th National People’s Congress and will take effect on January 1, 2020, after years of lobbying and public debate.

The law comes at a time when rivalry between China and the US is heating up in areas relating to cryptography, and just a day after President Xi Jinping urged the country to accelerate development of blockchain technologies.

“Cryptography is an important strategic resource for a country,” an official with the State Cryptography Administration was reported to have said by news agency Xinhua on Sunday. “It’s directly related to the country’s political security, economic security, national defence security and information security,” the official added.

According to the law, China’s codes will be categorised into two groups – “core and common codes” that are handled by the state and “commercial code” that can be developed and applied for profit.

In particular, the law stipulates that all business entities, including foreign funded enterprises, should be treated equally in “study, development, production, sales, service and trade” of commercial codes. “Administrations and its employees shall not force transfer of commercial cryptography technologies,” the law stipulates.

At the same time, the main purpose of the law is still about security, experts said.

Zhou Youjun, a law professor at Beihang University, said the law was aimed at “strengthening the management of passwords and to set standards for cryptography for the purpose of protecting cybersecurity and national security”.

Zeng Liaoyuan, an associate professor of information and communication engineering at the University of Electronic Science and Technology of China, said the law was important to safeguard national security. “The [cryptography] technology develops so fast. If we don’t have laws to support and regulate it, there would be uncontrollable situations,” Zeng said.

For instance, the cryptography law required the government to set China’s encryption standards and encourages Chinese government agencies, business entities and individuals to use these standards, so that China could ensure it had the technology under control, including blockchain technology, Zeng said.

“On that basis, when blockchain technology is applied to different fields, it will have a solid foundation.”

Cryptography is an integral underpinning of blockchain technology, which Xi said China should apply in the fields of finance, education, employment and health care.

Meanwhile, five years after China’s central bank started researching digital currency and blockchain, the country is now rushing to launch a digital currency, with added impetus following Facebook’s announcement in June that it planned to launch its own digital currency, the Libra, next year.

Facebook’s founder, Mark Zuckerberg, said at a congressional hearing last week that China’s quick move in the digital currency could put the US dollar at risk. “If America doesn’t innovate, our financial leadership is not guaranteed,” he said.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×