Unpacking Cyber Sovereignty

China’s notion of cyber sovereignty reflects an assertive extension of state authority into the digital realm. Rooted in principles of territorial jurisdiction, national security, and technological independence, this framework is embodied in key legislation. These laws impose rigorous compliance obligations on foreign and domestic businesses, particularly those operating critical information infrastructure. While these measures reinforce China’s digital autonomy, they pose significant challenges for foreign investors navigating this intricate regulatory landscape. This chapter critically examines how China’s cyber sovereignty aligns with its international investment obligations, focusing on three core principles: protection against expropriation, national treatment, and fair and equitable treatment (FET). It explores whether the stringent requirements and lack of effective remedies breach these standards, highlighting potential areas of discord with China’s investment treaties. Furthermore, it evaluates the limitations of security and general exception clauses in justifying these regulatory measures under international law. The findings suggest that China’s cyber sovereignty framework, while advancing its domestic security and technological goals, may conflict with its international investment commitments. As more nations adopt similar regulatory stances, this trend could signal a shift toward a fragmented global ICT market, reshaping the dynamics of international economic governance.