Crisis Management for a Conflict with North Korea

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SMEs ramp up defense against cyberattacks

China Daily | English | News | Nov. 28, 2025 | Cyber Attacks and Data Loss

Small and medium-sized enterprises (SMEs) in China are expanding their digital trade presence to reach global markets through platforms like TikTok, Facebook, Instagram, and Alibaba. This digital expansion now includes businesses from major cities as well as second- and third-tier cities, with over 120,000 cross-border e-commerce businesses recorded in June. However, this increased online activity also exposes SMEs to a rise in cyberattacks, with research showing that 46 percent of small businesses experienced cyber incidents in the past year. Nearly 20 percent of small businesses impacted by cyberattacks close within a year.

SMEs represent a significant part of China's economy, accounting for 90 percent of businesses, 70 percent of employment, and 50 percent of GDP. As of September 2025, there are 63.49 million SMEs in China, making the sector a critical driver of economic stability and growth. Additionally, SMEs contribute heavily to innovation, holding 75.3 percent of valid invention patents developed independently in 2024.

In response to rising cyber threats, Mastercard has introduced a vulnerability scanner to help SMEs identify and address cybersecurity risks on their websites and apps. Mastercard also uses generative AI to analyze transaction data and detect potential fraud, processing around 150 billion transactions annually with fraud risk scoring. The Chinese market's specific characteristics enhance these cybersecurity innovations.

To further protect SMEs, Chinese regulatory authorities, including the Ministry of Industry and Information Technology and the National Financial Regulatory Administration, have launched a second round of cyber insurance pilots. The first round in 2024 produced over 1,500 policies, generating premiums exceeding 150 million yuan ($21.14 million) and coverage worth nearly 11.5 billion yuan. These initiatives aim to strengthen the cybersecurity resilience of SMEs nationwide.

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