Image (GraphicStock) - Digital threats
China's individuals and small firms are embracing the digital economy, but they are facing cybersecurity threats beyond their capabilities, according to a whitepaper by Mastercard.
The whitepaper indicates that digital technologies can help China unlock meaningful improvements in economic growth and development.
However, the country will face risk in areas that will see wide adoption like the Internet of Things (IoT). In fact, China's future prosperity will depend on the steps it takes to strengthen cybersecurity for its citizens and small- and medium-sized enterprises (SMEs).
The government should provide detailed guidelines specifically for SMEs. Also, to be effective, security standards for widely used technology such as the IoT should be easy-to-use and embedded in product design.
China's industry consortia can succeed if they are committed to building open, flexible, and interoperable standards.
Safety and security issues
China's new cybersecurity would benefit from enhanced guidance on standards for data security and identity authentication, especially for IoT.
The private sector can be a strong partner, provided that China's cybersecurity framework promotes common standards, interoperability, and multi-stakeholder collaboration.
The private sector in China can be incentivised to meaningfully partner in the areas of standards for digital identity authentication; standards for data security; consumer awareness-raising; and capacity-building for businesses.
The whitepaper suggests this can be achieved by aligning China's cybersecurity framework to international standards; global interoperability; and multi-stakeholder collaboration.
According a recent report by McKinsey, the internet will contribute up to 22 percent of China's productivity growth by 2025. Therefore, the manner in which China leverages the digital economy will be a key determinant of future growth and development.
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