China is seeking to find new ways to fire back at the U.S. and other Western countries amid tensions over a range of issues.
The law attempts to defuse U.S. and E.U. pressure over trade, technology and Hong Kong.
However, Foreign companies worry about the impact the new laws will have on foreign investment.
An earlier draft called for the establishment of a categorical and hierarchical system for data and risk-assessment mechanisms.
China’s bill urged national security reviews of data handling, saying that harmful overseas activities should be “pursued for legal responsibility.”
The law represents “another important piece in the overall data protection regulatory jigsaw in China,” said Carolyn Bigg, a Hong Kong Lawyer said.
President Xi Jinping is seeking to gain control of vast reams of information produced by companies like Alibaba and Tencent, as part of broader efforts to position China as a leader in big data.
Beijing has been pouring money into data centers and other digital infrastructure to make data a national economic driver and help shore up the Communist Party’s legitimacy.
