by the National Counterintelligence and Security Center

“ High intelligence threat countries, such as China and Russia, could exploit these laws to significantly improve their access to the intellectual property of foreign companies operating in their countries and subsequently share this sensitive information with domestic firms. ”

“ The law also requires that firms operating in China store their data in China, and it requires government approval prior to transferring data outside China. The U.S. Chamber of Commerce has gone on record to explain that if a foreign company is forced to localize a valuable set of data or information in China, whether for research and development purposes or simply to conduct its business, it will have to assume a significant amount of risk. ”