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China's top legislature on Sunday began reviewing a draft law on data security, designed to establish basic systems for protection and management of data security, according to a report from the Xinhua News Agency.

The draft was submitted for a first reading at an ongoing session of the Standing Committee of the National People's Congress, which concludes on Tuesday.

The law aims to improve the country's ability to ensure data security, effectively respond to national security risks and challenges in non-traditional field, and effectively safeguard national sovereignty, security, and development interests, Xinhua said.

The new law, which comes amid the rapid development of China's digital economy, is also an effort by the central government to further promote the regulated development of the emerging digital economy, Liu Dingding, an industry veteran analyst, told the Global Times on Sunday.

"The data security law also comes as digital assets have become a significant and strategic asset for many countries in the world, Liu noted, adding that the data-related industry is now part of a "national strategy."

As global data competition heats up, a data security law could help supervise the flow of important data and safeguard China's sovereignty over its data, experts said.