Information Security in China

Chronicle

2025: Introduction of Digital IDs for Internet Users

Chinese authorities have introduced a digital ID system that allows citizens to hide personal information from Internet providers when registering with online services. On July 15, 2025, provisions on public service related to cyberspace identifiers came into force. The new system is aimed at strengthening the protection of personal data privacy and combating Internet fraud. This was announced by the Ministry of Public Security of the PRC on July 16, 2025.

According to Sponsored by Xinhua News Agency, more than 6 million Chinese citizens have received and activated digital identifiers since the introduction of this Internet service. The official mobile application for registration and verification of online identifiers was downloaded over 16 million times.

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The digital identifier functions in two forms: as a set of letters and numbers or as an online account. Both forms correspond to a person's real identity, but exclude information in plaintext. Citizens are no longer required to provide ID numbers or real names to Internet service providers when registering or confirming an identity.

ISPs do not have the right to require additional information in clear text from users using a cyberspace identifier, unless it is provided for by law or without the user's consent. The national platform will provide providers with only the results of the inspection in accordance with the principle of "minimum and necessary."

The introduction of digital identifiers was a response to the serious problem of telephone and internet fraud in China. According to the analytical company iiMedia Research, which conducted a study in 2024, more than 91% of subscribers reported calls from intruders and spammers. About 56% of subscribers received unwanted calls less than 10 times a day, 27% received 10 to 15 times a day, and 10% received 16 to 20 times daily.^[1]

2023

Information security software sales in China rose to 27.79 billion yuan for the year

In 2023, the volume of the Chinese information security software market reached 27.79 billion yuan ($3.79 billion at the exchange rate as of September 4, 2024), which is slightly more than a year earlier. The industry's leading player is QAX, with a stake of more than 6%, followed by Alibaba. Such data are given in the materials of Statista, which TAdviser got acquainted with in early September 2024.

It is noted that the sphere cyber security PEOPLE'S REPUBLIC OF CHINA is developing rapidly against the background of the digitalization of the country and the increasing intensity of hacker attacks. Chinese government Implements various initiatives to protect critical infrastructure and sensitive data.

One of the key factors in the development of the information security sector is the growth in the number of devices with a network connection, in particular, Internet of Things (IoT) equipment. Expanding this infrastructure increases the need for security software. The industry is also being stimulated by the rapid adoption of artificial intelligence technologies. On the one hand, such technologies help attackers automate many processes, including phishing and malicious code generation. On the other hand, AI significantly increases the efficiency of threat detection, as well as simplifies routine operations.

Analysts note that one of the main reasons for the growth of cyber attacks in China is the lack of qualified cybersecurity specialists in various industries. The transition to remote work amid the COVID-19 pandemic has also strengthened the need for comprehensive cybersecurity solutions to combat various cyber threats, such as malware and ransomware. In addition, the cybersecurity landscape in the PRC is changing due to the transfer of workloads to the cloud.^[2]

China has published a roadmap for the development of information security in the country

On January 15, 2023, the Ministry of Industry and Informatization of China (MIIT) revealed plans to develop the information security industry in the country. Investments in the relevant area will increase every year, writes the SCMP edition with reference to the corresponding roadmap.

It is reported that a large-scale program to strengthen the data security sector will include cooperation between research centers, universities and various companies. The project is expected to lay the foundation "for building the country's digital economy." In accordance with the plan, China intends to expand the data security industry by 30% every year: as a result, by 2025 the industry should exceed 150 billion yuan ($22.2 billion at the exchange rate as of January 18, 2023).

China published a roadmap for the development of information security in the country

By 2025, the PRC expects to form five IT security laboratories at the provincial and state levels in order to achieve a "breakthrough in key technologies and solutions." In addition, five national industrial parks will be created. cyber security It is planned to develop enterprises capable of competing in the field of IT security in the international market. Ten demonstration platforms for innovative products will also appear.

The cybersecurity division within MIIT says data protection is becoming an integral part of China's national security. The large-scale initiative will affect a variety of sectors - from telecommunications and transport to finance and health care. It is planned to actively use artificial intelligence and blockchain technologies. The program provides for the development of a large number of new products in the field of information security and the improvement of existing solutions. China's cybersecurity sector is expected to mature and "enter a period of prosperity" by 2035, ensuring effective support for the national digital economy.^[3]

See also

• China IT Market
• Regulation of IT companies in China
• Supercomputers in China
• Internet (China Market)
• Censorship (control) on the Internet. China experience
• Import substitution of information technology in China
• Cybercrime and cyber conflicts: China

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