China’s new cyber security law enables government to inspect intellectual property of foreign firms

China's new cyber security law could be invoked by government agencies to inspect or obtain proprietary technology or intellectual property from foreign companies.

Foreign companies could be forced by the Chinese government to hand over source codes of their technologies for testing vulnerabilities.

Enacted in June, China's new cyber security law aims to protect citizens' data and to ensure that the country's information technology infrastructure is not affected by security flaws. At the same time, it is a strong weapon which the government can use to keep a close eye on VPNs used by foreign firms doing business in the country.