China is overhauling its cybersecurity framework to address the mounting risks posed by artificial intelligence and vulnerabilities in critical infrastructure. According to an October 2025 bulletin by Global Policy Watch, the Cyberspace Administration of China (CAC) has issued amendments to the country’s Cybersecurity Law and related reporting regulations, expanding both the scope of incidents companies must report and the technologies they must monitor.

Reporting requirements: The changes, which take effect on January 1st, 2026, require firms in sectors such as telecommunications, finance, transportation, and energy to report a broader range of network incidents, particularly those involving large-scale AI system failures or disruptions in “important network infrastructure.” Reporting timelines have also tightened, with companies now required to notify authorities within one hour of detection.

While the core structure of the 2017 Cybersecurity Law remains, the CAC’s revisions strengthen enforcement tools and clarify operator responsibilities. Notably, the amendments introduce penalties for failing to disclose significant AI-related malfunctions or for delayed reporting of vulnerabilities that could endanger public safety or economic security.

Security concerns: The policy shift comes amid growing anxiety within Beijing about the unchecked deployment of artificial intelligence. Officials have warned that systemic failures in AI or digital infrastructure could be exploited by hostile actors, underscoring cybersecurity’s elevation to a matter of national defense.

Policy alignment: Legal analysts cited by Global Policy Watch see these changes as part of a wider regulatory trend. Recent legislation, including China’s Data Security Law and the Personal Information Protection Law, illustrates a coordinated effort to consolidate state oversight of digital systems.

For businesses operating in China, compliance will mean faster incident response, stricter data governance, and a sharpened focus on AI system integrity. While burdensome for some, the new rules reflect China’s broader ambition to tether technological development to national security objectives.