Cyber security rules raise more protest in China

China’s tightening cyber security rules have raised more complaints from the international business segment.

More than two dozen American and international business groups have signed a draft letter of protest against proposed Chinese regulations for the insurance sector that they say could result in discrimination against foreign technology companies.

The letter, which is addressed to the chairman of China’s insurance regulator, says the proposed regulation could create obstacles to China’s international trade, according to a copy reviewed by The Wall Street Journal.

“China, like other [World Trade Organization] members, has the right to implement measures necessary for the maintenance of cyber security, but we believe that the provisions go far beyond what is necessary,” the draft letter reads.

Erin Ennis, senior vice president of the U.S.-China Business Council and one of the letter’s drafters said: “It’s not just something unique to insurance, it is a challenge that is appearing now across multiple sectors.”

China’s leaders have made cybersecurity a priority and have adopted broad laws in the past year that require technology-gear vendors to submit to security tests, assist authorities with decryption and store data onshore. Individual sectors are expected to adopt variations of the rules.