London Daily

Focus on the big picture.
Friday, Jun 20, 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
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×