China: Adopted Regulations on the Administration of Commercial Encryption including import licensing requirements

On 24 May 2023, China's State Council issued the Regulations on the Administration of Commercial Encryption, including import licensing requirements, which will enter into force on 1 July 2023. In particular, the Regulations state that commercial cyphers that could impact national security and public social interests and have encryption protection functions are subject to import licensing requirements and must follow specific rules to be imported to the country. The commercial cyphers used in in everyday goods are not subject to the Regulations. The entities would be required to obtain permission from the government in order to transmit commercial cyphers. The import operators failing to provide an import license for such products may face questioning from customs and penalties. Applications for commercial encryption import licenses will be examined within 45 working days. Imports impacting national security or public interest must be approved by the State Council, for which is no timeline set.