China's upgraded cybersecurity law could take a toll

• "It’s going to be incredibly invasive," said Adam Segal, director of the Digital and Cyberspace Policy Program at the Council on Foreign Relations.

Background: China's cybersecurity law has been on a slow rollout since 2017. Clarifications of standards serving as de facto regulations were introduced in May this year.

• Those included the right for China to plug into networks and check for cybersecurity, as well as mandates about securing supply chains for network security.
• Until December, those standards only technically apply to companies where breaches could cause national security problems, though Chinese officials often hold companies to regulations in advance of their formal launch dates.
• "Now the standards will apply to any company with a network," Samm Sacks, a fellow at the New America think tank, told Axios.

This puts a burden on U.S. companies that American companies are not used to. "Chinese companies won't bat an eye at it," Sacks said.

• Given China's record of using hackers to steal intellectual property from global competitors, some network owners worry — justifiably, according to experts — that allowing China access to their data puts corporate secrets at risk.
• China has a history of using any means necessary to aid domestic businesses. That could now include ruling that a foreign company has failed to meet official security muster — boxing competitors out of China's market.

But, but, but: Those worst-case scenarios might not be the problem immediately at hand, said James Lewis, who currently heads cybersecurity at the Center for Strategic International Studies and formerly served in several federal positions evaluating and negotiating with China.

• "The Cybersecurity Authority of China [CAC] insists it won't use the law to steal private information. And China has so many other ways to steal intellectual property that it probably doesn't need to," Lewis told Axios.
• As with all things China, if the party tells the CAC to steal data in the future, it will do so, Lewis added.

The most immediate problem may be that the cost of compliance can become prohibitive for some firms to operate in the country. "If you are a smaller company, you may think twice about moving into China," said Segal.

• The broader trade conflict between the U.S. and China makes it tougher for foreign firms to protest.

Chinese firms have a poor record on cybersecurity, said Lewis. The tougher law, at least ostensibly, addresses a very real issue.

The U.S. faces similar issues, but it addresses them differently. The U.S. operates using fewer top-down security requirements, choosing instead to emphasize trade groups setting industry standards.

• The U.S. is far more permissive about lower-risk networks, offers more autonomy to network administrators, and generally uses a scalpel where China uses a chainsaw.

One thing the U.S. and China have in common: "In China, network operators have to submit to 'black box' security reviews. We have no idea what it takes to pass," said Sacks. "I'm beginning to see that from the Trump administration."

• Guliani's business dealings with Ukraine are being investigated by federal prosecutors in the New York case against his associates. He's also at center of the impeachment inquiry for allegedly trying to press Ukraine to investigate former Vice President Joe Biden over unsubstantiated corruption allegations.

What they're saying: Brian Benczkowski, the head of the Justice Department’s Criminal Division, and other top Justice Department officials met with Giuliani before the pair was charged to discuss a fraud case "in which he and other attorneys were representing the defendants," per the Times.

"When Mr. Benczkowski and fraud section lawyers met with Mr. Giuliani, they were not aware of any investigation of Mr. Giuliani’s associates in the Southern District of New York and would not have met with him had they known."

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What they're saying: According to a copy of the talking points obtained by Vox, the State Department’s Bureau of Near Eastern Affairs wrote that "Turkey’s military offensive is severely undermining counter-ISIS efforts, endangering innocent civilians, and threatening peace, security, and stability in the region."

• "Turkey does not appear to be mitigating the humanitarian impact of its invasion and occupation of some parts of northeast Syria," the cable adds. The U.S. has "called on Turkey to investigate possible violations of international humanitarian law, especially unlawful attacks against civilians and civilian infrastructure."
• The talking points also note that the department has withdrawn humanitarian and stabilization assistance advisers from northern Syria, which will make it difficult to implement the $50 million aid that the U.S. plans to distribute, per Vox.

Meanwhile, Trump has brushed off concerns that ISIS fighters could take advantage of the chaos and escape prisons and detention camps. On Oct. 9, Trump said ISIS fighters would defect to Europe if they escaped.

• So far, at least 950 ISIS supporters have escaped camps for displaced people.
• On Oct. 16, the president said that "the Kurds are much safer right now. But the Kurds know how to fight, and as I said, they're not angels. They're not angels. ... I wish them all a lot of luck."

Of note: The State Department released the talking points before Vice President Mike Pence and Secretary of State Mike Pompeo met with Turkish President Recep Tayyip Erdogan and agreed to a temporary ceasefire that would force Kurdish forces to evacuate the area.

• A State Department official told Vox the talking points have not been updated since the ceasefire.

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