China’s industrial control network security related industry standards, laws and regulations have been intensively introduced in recent years. As early as 2016, China issued the Cybersecurity Law of the People’s Republic of China. Since 2017, the Ministry of Industry and Information Technology has successively issued the “Industrial Control system Information security Protection Measures”, “Industrial control System information Security Action Plan”, “Network security Grade Protection System 2.0″ and other corresponding regulations, which put forward new requirements for industrial control security, and have specific guidance and landing direction.

In December 2021, the “Industrial Internet Security Standard System (2021)” was released, including 16 subdivisions and 76 specific directions in 3 categories, such as classified and graded security protection, security management, and security application services. It is pointed out that we should accelerate the establishment of a classified and hierarchical network security management system, strengthen the security protection capabilities of industrial Internet enterprises, and promote the high-quality development of the network security industry.

In April 2022, the Ministry of Industry and Information Technology issued the “Industrial Internet Special Working Group 2022 Work Plan”, pointing out that security should be improved. Implement the main responsibility of enterprise cybersecurity in accordance with the law, improve the industrial Internet security management system, and deeply implement the classification and classification management system for industrial Internet enterprise cybersecurity. Strengthen the innovation and breakthrough of cybersecurity supply, and accelerate the innovation and breakthrough of key core technologies for industrial Internet security. Promote the development and growth of the cybersecurity industry, and do a good job in the implementation of the cybersecurity industry policy documents. Strengthen the technical support capability of network security, and continue to improve the national industrial Internet security technology monitoring service capacity.

SCXI-1125

SCXI-1125

In May 2022, the General Office of the Ministry of Industry and Information Technology issued a notice on carrying out in-depth industrial Internet security activities, focusing on six contents such as classification and classification management, policy and standard promotion, resource pool construction, emergency drills, talent training, and event activities, pointing out that in-depth promotion of industrial Internet security related policies and standards. Improve the working mechanism of independent grading, grading verification, security protection, and risk assessment, accelerate the innovation of special technologies and products for industrial Internet security, cultivate and strengthen local specialized service institutions, and promote the in-depth implementation of classified and graded management of industrial Internet enterprises’ cybersecurity nationwide. Subsequently, Jiangsu, Jiangxi, Shandong and other places have carried out in-depth industrial Internet security activities in 2022 to jointly improve the industrial Internet security guarantee capability.

In terms of financing, in recent years, industrial Internet industrial policies have been favorable, social attention to network security has continued to rise, and relevant enterprises and investment institutions have continuously increased investment and financing in the industrial security market.

Founded in 2014, Winut has so far obtained strategic shares of more than 1 billion yuan from a number of central enterprises, state-owned assets and government funds, and the proportion of enterprise equity is more than 30% of state-owned capital, which reflects the national level’s attention to industrial Internet security. In September 2021, Weite announced the completion of tens of millions of head round financing exclusively invested by UF Happiness Investment, which provides services and solutions for the whole process of industrial Internet security products, training, consulting, planning, evaluation, construction, operation and maintenance, and masters a number of core technologies. In May 2022, the whole life cycle industrial control safety solution provider completed the D round of financing of nearly 700 million yuan, and the investors of this round of financing include 11 central state-owned enterprise industrial capital, local state-owned funds and other well-known domestic first-line investment institutions. In June 2022, Changyang Technology, which focuses on industrial Internet security, industrial control security situation awareness and visual AI security big data application, completed E+ round of strategic financing of nearly 100 million yuan, and announced the completion of 300 million yuan F round financing in December, which will form industrial collaboration with Internet enterprises to jointly build a new security ecology.

Driven by factors such as the expansion of data risk exposure, the need for policy compliance and the accelerated development of the data element market, the long slope and thick snow of the data security track are expected to bring about an increase in the demand for data security products.