In its most draconian interpretation, the proposed requirements could also further limit access within the Chinese network, analysts said. That appears to be the latest step by the ruling Communist Party to erect cyber barriers in the name of what some officials call "Internet sovereignty."
"This expands control over domestic Internet operators and contributes to the gradual buildup of the capability underpinning Internet sovereignty," said Rogier Creemers, an expert on Chinese media policy at the University of Oxford.
Analysts said the main targets appear to be Chinese Internet companies that store their content domestically but keep their Web address registered overseas with reputable, international firms for security purposes.
Requiring them to shift their registration to a domestic provider under Chinese government control would allow censors to react more quickly in blocking access to certain sites, said Long Weilian, an IT consultant based in the southern Chinese city of Shenzhen who has blogged extensively on the issue.
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Jacob Parker, vice president for China operations with the US-China Business Council, which lobbies the Chinese government on trade policy, said his group was concerned that the rules would block the free flow of information.
"Any kind of restrictions would undermine China's broader economic development goals," Parker said.
Concerned that a borderless, US-led global Internet could weaken its political control, China's government has repeatedly issued cyber regulations that have drawn criticism from Western trade groups. Following pushback from the White House last year, China dropped a provision in a cybersecurity law that would require companies to keep Chinese user data at facilities in China, allowing the government access to personal information.