"The impact of the knowledge economy is great, the significance of information security for a country is equal to that of its economic security and political security," said Sheng Changxiang, from the China Academy of Engineering.
The report details how China lacks widespread network security management systems, and its businesses are suffering as a consequence. In 2004 58 percent of networks studied in the China Information Network Safety Survey were subject to an information security problem. Ten percent felt significant financial losses.
Alongside the national system legislation is to be used to augment information security. The law is likely top be drafted by the end of 2005.
The news arrives as part of an increased effort from the Chinese government to improve national network security.
At a January conference on information security Chinese Vice Premier Huang Ju called for a strengthening of the capability to maintain information security. He highlighted China's need to strengthen its information security laws and promised a greater focus on improving national technology and management of information security.