The Chinese National Intelligence Law has created significant compliance challenges for businesses operating in or with China since its implementation in 2017. This sweeping legislation requires Chinese citizens and organizations to cooperate with national intelligence work, raising concerns for multinational companies about data security and legal obligations.

Understanding the law's key provisions is crucial for any business with Chinese operations, partnerships, or subsidiaries. The legislation's broad scope means that companies may face unexpected requirements to share information or provide assistance to Chinese authorities.

This guide breaks down the most important aspects of the law and explains what international businesses need to know to stay compliant.

Learn how China monitors businesses and individuals in our guide to China's Social Credit Score system.

What Is China's National Intelligence Law?

China’s National Intelligence Law sets up a legal structure for intelligence work and requires citizens and organizations to support state security efforts. The law went through the National People’s Congress in 2017 and got a significant update in 2018, strengthening China’s security rules alongside other laws like the Cybersecurity Law.

When the Law Started and What It Covers

The 12th Standing Committee of the National People’s Congress passed the National Intelligence Law on June 27, 2017, and updated it on April 27, 2018.

This law came during China’s broader push to tighten security legislation, around the same time as other big laws like the Cybersecurity Law.

Key areas the law covers:

• Intelligence collection and processing
• National security protection
• Intelligence agency authority
• Citizen and organization duties
• Information about threats to China’s interests

Chinese intelligence agencies can collect information about anything that might harm China’s national security or interests—including actions by foreign agencies, organizations, or individuals.

Who Has to Follow This Law

The National Intelligence Law applies to a wide range of people and groups inside China’s borders.

Citizens must:

• Support national intelligence work
• Cooperate with intelligence agencies when asked
• Protect intelligence work secrets
• Report security threats they learn about

Organizations must:

• Help intelligence agencies with their work
• Provide support when requested by authorities
• Keep intelligence activities confidential
• Follow security rules and procedures

Chinese companies operating abroad also have to comply. Foreign companies doing business in China may need to meet certain requirements, too.

The law protects people who help with intelligence work and punishes those who refuse to cooperate or interfere.

How It Works with Other Chinese Laws

The National Intelligence Law works alongside several other important Chinese security laws, creating a pretty dense legal landscape.

Related laws include:

• Cybersecurity Law – Controls online activities and data
• Counterespionage Law – Targets foreign spying
• Counter-terrorism Law – Prevents terrorist activities
• National Security Law – Protects overall state security

Requirements from these laws often overlap. If you run a business in China, you could find yourself juggling rules from several laws at once.

The intelligence law gives Chinese agencies broad authority to work with other government departments—public security bureaus, military intelligence, and state security departments all come into play.

The central government coordinates intelligence work through its national security leadership body, trying to keep agencies working together rather than at cross purposes.

Explore another key area of Chinese law in our analysis of Women's Rights in China.

What This Law Means for Your Business

Chinese organizations and citizens must cooperate with government intelligence work under Article 14, which requires sharing information about national security threats. Foreign businesses face compliance headaches when operating in China or dealing with Chinese partners.

When Chinese Citizens Must Help the Government

Article 14 obligates all Chinese citizens and organizations to support, assist, and cooperate with national intelligence efforts. Your Chinese employees must help government intelligence agencies if asked.

They can't refuse these requests and must keep any intelligence work secret.

If you employ Chinese nationals outside China, they still have these duties. The law follows them wherever they work.

Chinese telecom companies like Huawei get extra scrutiny because of these requirements. Foreign governments worry these companies might share data with Chinese intelligence agencies.

Your business partners in China are in the same boat. They can’t warn you if intelligence agencies request information about your company.

What Information Companies May Need to Share

Chinese intelligence agencies can legally collect information about anything that threatens China’s national security and interests—a definition that’s honestly pretty broad and covers many business activities.

Your company data stored in China could be accessed by intelligence agencies. This could include:

• Customer information
• Business communications
• Financial records
• Technology details

Cybersecurity gets trickier under this law. Chinese companies handling your data have to cooperate with intelligence requests.

Foreign NGOs face strict rules under related laws. Nonprofit activities in China require government approval and monitoring.

You probably won’t know when Chinese partners share your info. The law requires them to keep intelligence cooperation secret.

Common Problems for International Businesses

Many foreign companies worry about keeping sensitive information safe when working with Chinese firms. Once your data enters China, you may lose control over it.

Your Chinese business partners face conflicting loyalties. They’re required to follow Chinese law, even if it damages your business relationship.

Some countries now restrict Chinese telecom companies because of these intelligence law worries. This can affect your technology choices and supply chain.

Foreign groups in China face more scrutiny. Your activities might be labeled national security threats under broad definitions.

It’s smart to set clear data policies about what information goes to China. Think hard about where you store sensitive business data and who can access it.

Getting Help with These Legal Requirements

Companies need serious guidance to navigate China’s complex intelligence law requirements and figure out their risk levels. Legal pros who really know Chinese law can help you build compliance plans and spot potential problem areas.

How to Check If Your Company Is at Risk

Start by reviewing your business in China. What data do you collect and store? Do you have Chinese employees or partners?

Companies with offices in China face higher risks. Your staff must follow Article 14 requirements to cooperate with intelligence work. You can’t ignore these legal duties.

Key risk factors include:

• Physical presence in China
• Chinese business partners
• Data stored on Chinese servers
• Chinese employees or contractors
• Technology transfers with Chinese companies

Review your supply chain. Even indirect business relationships can create obligations under the law.

Check if your industry shows up on China’s restricted lists. Some sectors get extra scrutiny from intelligence agencies.

Document your China operations. List all business activities, partnerships, and data flows. Legal experts need this to spot trouble spots.

Creating a Plan to Stay Compliant

Build a compliance plan before you run into problems. Set clear policies for your China operations.

Train staff on intelligence law basics. People need to know their legal duties and when cooperation with Chinese authorities becomes mandatory.

Essential compliance steps:

• Create data handling procedures
• Set up reporting systems
• Train local staff regularly
• Monitor policy changes
• Review contracts with Chinese partners

Work with legal experts to draft response procedures. Know what to do if Chinese authorities make requests. Have a plan for different scenarios.

Update your compliance program regularly. China’s laws change often. Your policies need to keep up.

Set up regular legal reviews. Check in with experts who track Chinese law changes.

Why You Need Legal Experts Who Know Chinese Law

China’s intelligence law creates some real legal headaches. General business lawyers often can’t handle these specialized requirements.

Look for attorneys with China law experience. Jeremy Daum from China Law Translate shares sharp analysis of Chinese legal texts. Resources like Lawfare offer in-depth commentary on intelligence law impacts.

International law firms like Mannheimer Swartling handle cross-border compliance issues and understand how Chinese laws affect global operations.

Experts in public international law can explain how China’s intelligence law clashes with other countries’ rules. This is crucial for multinationals.

Murray Scot Tanner and similar analysts study Chinese security laws and enforcement trends. Their research can help you anticipate what’s coming.

Get a legal opinion on your specific situation. Generic advice won’t cut it for intelligence law compliance. Every company faces different risks.

Choose lawyers who read Chinese legal texts directly. Translation errors can cause big compliance gaps. Direct language skills really matter for accurate advice.

Read our detailed breakdown of China's Charity Law for more insights into Chinese regulations.

Conclusion: Chinese National Intelligence Law

The Chinese National Intelligence Law creates complex compliance requirements that every business with China connections must understand. From Article 14's broad scope to Article 14's cooperation mandates, these provisions can significantly impact your operations and legal obligations.

Navigating these requirements requires careful planning and expert legal guidance. The law's ambiguous language and far-reaching implications make it essential to work with professionals who understand both Chinese regulations and international compliance standards.

Stay informed about China's evolving legal landscape by exploring our comprehensive coverage of Chinese regulations. Learn more about another important piece of legislation in our detailed analysis of China's Charity Law.

Frequently Asked Questions: Chinese National Intelligence Law

The Chinese National Intelligence Law sparks a lot of questions about specific articles, intelligence agencies, and China’s long-term plans. People focus on key provisions like Articles 7 and 14, China’s intelligence structure, and its broader goals.

What is Article 14 of the Chinese National Intelligence Law?

Article 14 requires all Chinese citizens and organizations to support national intelligence work when asked. This means businesses in China could face legal obligations to cooperate with intelligence services. Chinese companies abroad may also fall under this rule, creating conflicts with other countries' privacy laws.

What is China's version of KGB?

The Ministry of State Security (MSS) acts as China's main intelligence agency, handling both domestic security and foreign intelligence. The MSS works with the Ministry of Public Security and operates under the National Intelligence Law. Unlike the Soviet KGB, China uses several coordinated agencies rather than one centralized organization.

What is Article 14 of the Chinese intelligence law?

Article 14 covers the scope of intelligence operations but creates uncertainty about agency powers. Some experts believe it limits intelligence work to defensive purposes only. Others argue it allows broader activities, making it unclear what intelligence agencies can legally do.

What is China's 2049 plan?

China's 2049 plan aims to transform the country into a fully developed nation by 2049. The plan combines technology, military, and economic goals with intelligence work supporting these objectives. The National Intelligence Law helps enable intelligence activities that support China's long-term 2049 vision.