A new data security law went into effect in September as did other rules that compel operators of critical information infrastructure to conduct security inspections and risk assessments. Their expanded use is in line with China's tougher stance on data protection. The golden shares are a "sword of Damocles hanging over the heads of firms that have them, a reminder that data security is now under close watch by the authorities," said Feng Chucheng, a partner at consultancy Plenum in Beijing. The internet regulator, the Cyberspace Administration of China (CAC), did not respond to a request for comment. The sources declined to be identified due to the sensitivity of the issue. Reuters was not able to ascertain how many other data-rich firms authorities were seeking to take a golden share in. More golden shares in data-rich companies will come to light in due course, the person said, adding that authorities were now more willing to highlight their ownership.Ī separate source said a golden share had been taken in a data-rich company very recently but declined to disclose which one. Often there is no evidence of a golden share until the share ownership is publicly registered but that can take a year or longer. "They have broadened their attention to other companies that possess strategically important data and are considered operators of critical information infrastructure," said one person with direct knowledge of how some state investors handle such stakes. The stakes are bought by government-backed funds or companies which gain a board seat and/or veto rights for key business decisions.Īuthorities are now also keen to have some control over vast troves of data owned by certain companies, the sources said, adding that the data is seen as a national asset at risk of attack and misuse, including by foreign states. Seeking influence, Beijing began taking golden shares in private online media companies - usually about 1% of a firm - some five years ago.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |