On 28 February, CNBC reported that China has increased national security measures by expanding the protection of state secrets. On 26 March, Chinese President Xi Jinping signed an order to reform the law on guarding state secrets. The law was reportedly updated by legislators prior and the new rules are scheduled to be executed from 01 May. The new rules prescribe precautions regarding state secrets and their application to unclassified information known as work secrets. The revision proposed expands the purview of what is considered as a state secret, it now would also include information that is not necessarily state secret but can have adverse effects if leaked. Chinese State Secrets Bureau said the law would: “strengthen the systematization, comprehensiveness and synergy.” Analysts highlight that this would reduce the public right to information and expose civilians to potential liabilities.

Background
The State Secrets Law was introduced in 1988 and further revised in 2010. The law provides a general description of what is understood as state secrets. This describes any matter that bears vital information on state security and national interest and, as specified by legal procedure, is entrusted to a limited number of people for a given time. State secrets are confidential matters related to policy decisions, national defence, diplomatic activities, economic development, science and criminal cases. By law, these secrets are termed "top secrets", "classified" or "secret". Top secret information can be retained for 30 years. The law details 12 ways it can be violated, including illegally obtaining or holding carriers of state secrets and illegally storing state secrets. The personnel affected include the members of government bodies, communist Party organisations, state-owned enterprises and the military. However, there has been no official list detailing these groups. Under the law, individuals are classified into- core, important or general. Violation of the law could result in the accused facing life imprisonment.

Impact of the revisions
The updated state secret laws come as Beijing and Washington focus on national security issues and announce new restrictions for business as they grow weary of each other. The law retains some restrictions for international travel by individuals currently working with state secrets. The director of the Center Security Office, Li Zhaozong stated that the revised law provides a strong legal guarantee for better protection of national sovereignty, security and development interests. Li highlighted that ensuring confidentiality while disclosing information is essential. The National People's Congress Standing Committee passed the final version of the updated state secrets law following revisions in October 2023. Analysts note that the new laws are updates for new technology.

The amended state secret laws would provide a legal basis for the protection of intellectual property of information security product makers. The revisions strengthen the connection between the State Secret Law and the Data Security Law. The Data Security Law prohibits foreign judiciaries from accessing data on Chinese citizens without the approval of authorities.

Backlash for business
The imposition of national securities laws has raised concerns amongst foreign businesses and investors. The regulations and expansive criteria are unclear, increasing the probability of the implementation of the rules arbitrarily. Foreign direct investments have declined following the restrictions. The revision coincides with a crackdown on business across the Chinese economy. Chinese executives are being targeted as a part of anti-corruption measures. The Chinese government has detained foreign executives on charges of espionage, preventing them from leaving. Additionally, China has resolved to educate its civilians regarding the national security risks prevalent in the economy through publications from the Ministry of State Security.

Additionally, the Ministry of State Security has utilized its official WeChat social media account to educate users regarding foreign espionage efforts. European chamber head Eskelund has opined that the secret law is vague and works against the Chinese government's aim of prioritising foreign investment stability. In order to build foreign investor confidence, it is crucial for China to define its regulations and limit its scope. This would enhance the compliance of companies and their access to legitimate sources. The proposal strikes concerns amongst FDI’s who are finding staying and investing in China becoming increasingly complicated. What stands to be observed is not only how it affects the day-to-day lives and rights of citizens but also how the CCP will use the law to crack down on possible dissenters and foreign investors to leverage with countries