China has approved major changes to its Cybersecurity Law, marking its first substantial update since the framework was introduced in 2017. The revised legislation, passed by the Standing Committee of the National People’s Congress in late October 2025, is scheduled to come into effect on January 1, 2026. The new version aims to respond to emerging technological risks, refine enforcement powers, and bring greater clarity to how cybersecurity incidents must be handled within the country.
A central addition to the law is a new provision focused on artificial intelligence. This is the first time China’s cybersecurity legislation directly acknowledges AI as an area requiring state guidance. The updated text calls for protective measures around AI development, emphasising the need for ethical guidelines, safety checks, and governance mechanisms for advanced systems. At the same time, the law encourages the use of AI and similar technologies to enhance cybersecurity management. Although the amendment outlines strategic expectations, the specific rules that organisations will need to follow are anticipated to be addressed through later regulations and detailed technical standards.
The revised law also introduces stronger enforcement capabilities. Penalties for serious violations have been raised, giving regulators wider authority to impose heavier fines on both companies and individuals who fail to meet their obligations. The scope of punishable conduct has been expanded, signalling an effort to tighten accountability across China’s digital environment. In addition, the law’s extraterritorial reach has been broadened. Previously, cross-border activities were only included when they targeted critical information infrastructure inside China. The new framework allows authorities to take action against foreign activities that pose any form of network security threat, even if the incident does not involve critical infrastructure. In cases deemed particularly severe, regulators may impose sanctions that include financial restrictions or other punitive actions.
Alongside these amendments, the Cyberspace Administration of China has issued a comprehensive nationwide reporting rule called the Administrative Measures for National Cybersecurity Incident Reporting. This separate regulation will become effective on November 1, 2025. The Measures bring together different reporting requirements that were previously scattered across multiple guidelines, creating a single, consistent system for organisations responsible for operating networks or providing services through Chinese networks. The Measures appear to focus solely on incidents that occur within China, including those that affect infrastructure inside the country.
The reporting rules introduce a clear structure for categorising incidents. Events are divided into four levels based on their impact. Under the new criteria, an incident qualifies as “relatively major” if it involves a data breach affecting more than one million individuals or if it results in economic losses of over RMB 5 million. When such incidents occur, organisations must file an initial report within four hours of discovery. A more complete submission is required within seventy-two hours, followed by a final review report within thirty days after the incident is resolved.
To streamline compliance, the regulator has provided several reporting channels, including a hotline, an online portal, email, and the agency’s official WeChat account. Organisations that delay reporting, withhold information, or submit false details may face penalties. However, the Measures state that timely and transparent reporting can reduce or remove liability under the revised law.
