(Yicai Global) Sept. 15 -- China’s government has proposed increasing some fines for breaches of the nation’s cybersecurity law by 10 times to a maximum penalty of CNY1 million (USD143,500).

Network product and service operators that did not undergo or failed security reviews can receive a fine equal to as much as 10 times the cost of the product or service in question, or up to 5 percent of annual turnover the year before, according to the Cyberspace Administration of China's draft of legal revisions published online yesterday for public feedback.

The Cybersecurity Law that came into force in 2017 was the first major domestic legislation governing data transfer and storage. It prohibits individuals and organizations from using the internet to infringe others' reputations, privacy, intellectual property rights, and other lawful rights and interests. It also directs network operators to strengthen their management of information posted by users.

The draft revisions aim to align with China’s Personal Information Protection Law, which has a maximum fine of CNY50 million (USD7.2 million) or less than 5 percent of the previous year’s turnover, as well as similar laws overseas, such as the European Union's General Data Protection Regulation that stipulates a fine of up to EUR20 million (USD20 million), or 4 percent of annual global revenue, internet and legal experts told Yicai Global.

But the higher proposed compliance requirements for network operators has raised concerns among some lawyers. “Most companies are facing economic difficulties now, and I’m deeply worried about them,” said Liu Chunquan, a partner at Duan Duan Law Firm.

China’s Data Safety Law and Personal Information Protection Law were published last year. They impacted internet firms and data network infrastructure operators. In July, ride-hailing giant Didi Global was fined USD1.2 billion for violating them.

Editors: Shi Yi, Futura Costaglione