China’s new espionage law likely to discourage foreign capital inflow, cut economic growth | Forexlive

China’s new law against espionage will tighten state control over a wider swath of data and digital activities.

The Wall Street Journal (gated) reports:

• The updated law broadens China’s already expansive definition of national security
• threatens to undermine efforts by Communist Party leaders to court foreign capital in a bid to revive economic growth
• “The business community necessarily needs information,” said Lester Ross, a Beijing-based lawyer and chair of the policy committee at the American Chamber of Commerce in China. “There is therefore a risk that people will be unable on behalf of their companies to gather sufficient information for fear of being branded an espionage agent.”