China's CSL Amendment Introduces Stricter Penalties for Cybersecurity Non-Compliance
The recent amendment to China's Cybersecurity Law (CSL) introduces significant changes to the legal liability framework, increasing penalties for non-compliance. The amendment, effective January 1, 2026, raises the maximum fines for violations to ten million RMB, reflecting the value of data assets and the severity of security risks in the digital economy. The amendment also incorporates leniency provisions, encouraging enterprises to establish compliance systems and self-correct. Key highlights include stricter penalties for failing to implement security measures under the Multi-Level Protection Scheme, protection for Critical Information Infrastructure, and governance of artificial intelligence.