China Tells Companies to Ramp Up Data Security in Hiring Auditors

(Bloomberg) — China ordered state-owned enterprises and domestically traded companies to ramp up security checks when hiring accounting firms in the government’s latest move to ensure data security amid tensions with the U.S.

Chinese businesses should include specific clauses clarifying the responsibilities and requirements for information security protection in their contracts with auditors, according to rules jointly published Thursday by China’s Ministry of Finance, the watchdog for state-owned enterprises (SOEs) and the securities regulator.