The National Computer Virus Emergency Response Center (CVERC) and software company AsiaInfo today detected the "UIWIX" virus, which is spreading in a way similar to the "WannaCry" ransomware.
The new virus uses a bug in the Windows operating system, and infects computers by renaming files after encryption, said Chen Jianmin, standing deputy head of the CVERC.
The renamed files usually carry the extension '.UIWIX'.
No infections have been confirmed in China so far, and the CVERC is undertaking technical analysis on the virus, while keeping an eye on possible infections, state-run Xinhua news agency reported.
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