Escalating Cybersecurity Penalties: Enterprises Should Complete Internal Network Security Self-Inspections via All-Optical Networks Before Receiving Rectification Summons

In 2026, fundamental shifts are taking place in cybersecurity supervision for enterprises.
At the start of the year, the revised Cybersecurity Law officially took effect. The maximum fine for enterprises rose sharply from 1 million yuan to 10 million yuan, and the maximum penalty for directly responsible individuals reached 1 million yuan. Meanwhile, the flexible clause allowing only warnings for first-time violations was abolished, enabling regulators to impose fines directly.

On August 6, Decree No.176 of the Ministry of Public Security, Measures for the Supervision and Inspection of Cyberspace Security by Public Security Organs, was released and will come into force on October 1. Together with existing data security requirements under Classified Protection of Cybersecurity, regulation has achieved an all-round upgrade from “internet security” to a three-in-one framework covering network security, data security and information security. Enterprises failing to conduct internal network security self-inspections in advance may receive summons notices and fines.

I. Why Summonses and Penalty Notices Are Becoming More Frequent

Changed inspection method: From document reviews to live offensive testing

Article 4 of Decree No.176 clarifies that public security organs at or above the prefecture-city level may conduct remote testing on network facilities and information systems within their jurisdiction through vulnerability detection and penetration testing, with notification given only three working days in advance. Exposed high-risk ports, weak passwords and unpatched known vulnerabilities will be uncovered during remote scans. The old tactic of rushing to organize ledgers at the last minute is no longer effective.

Expanded inspection targets: From website operators to all entities handling data

Old regulations only covered two categories: “internet service providers” and “internet-connected users”. Article 6 of the new decree extends inspection coverage to multiple entities including network operators, data processors and personal information processors, with a catch-all clause for “other entities subject to supervision and inspection by law”. Whether in manufacturing, retail, service industries or traditional sectors, any enterprise operating official websites, processing data or using networks falls within inspection scope. “We are not an internet company” is no longer a valid defense.

Tougher penalties: Three-tier consequences triggered by a single data breach

The revised Cybersecurity Law not only raises fine caps but also establishes the enforcement principle of leniency for proactive rectification and harsher punishment for non-compliance. In cases of exceptionally severe consequences, enterprises may face fines up to 10 million yuan, and liable individuals up to 1 million yuan. Consequences may also include public credit listing and business suspension. Critically, the removal of the first-offense warning-only clause grants regulators authority to issue fines directly.

Clear designation of high-priority supervised entities

Article 6 of Decree No.176 explicitly states that entities that have previously suffered cybersecurity or data security incidents, or received administrative penalties for failing to fulfill statutory obligations without completing required rectification, shall be designated key inspection targets. In short, enterprises summoned but failing to make adequate corrections will be prioritized in subsequent inspections, with more frequent remote testing.

II. Enterprise Internal Network Self-Inspection Checklist

Against the 11 key inspection items specified in Article 7 of Decree No.176, enterprises can carry out pre-inspections from the following dimensions:

1. Fulfillment of filing and primary entity responsibilities: Whether network unit filing procedures are completed in accordance with law, with submission of basic information and updates of access entities and users; whether a dedicated cybersecurity manager and security management ledgers are in place.
2. Real-name authentication covering all internet terminals: Whether a unified real-name authentication entry is available for employees, visitors and IoT devices to achieve identity-matching. Whether visitor networks eliminate universal shared passwords for all users.
3. Compliant log retention: Whether internet logs fully record core fields including MAC address, IP address, authentication account, login/logout time and accessed URL; whether retention duration is no less than six months (180 days); whether logs are tamper-proof and exportable.
4. Adequate security safeguards: Whether technical controls are deployed to defend against computer viruses, network attacks and intrusions; whether core devices still use factory default passwords; whether unauthorized privately-connected devices can be automatically identified and blocked.
5. Risks of lateral movement within internal networks: Whether clear isolation boundaries separate office networks, production networks, security networks and visitor networks; whether attackers can easily penetrate core business systems after compromising a single terminal.
6. Data security and personal information protection frameworks: Whether classification and grading of important data are implemented; whether data transmission and storage are encrypted; whether a data access permission management system is established.

III. How All-Optical Networks Automate Self-Inspections

AINOPOL’s Integrated Communication & Security solution embeds compliance capabilities deep within the network foundation. Security baselines are ready upon network deployment, instead of deploying numerous independent appliances after network rollout.

Real-name authentication: Visitor self-service QR scan with automatic system verification

Visitors are redirected to a Portal authentication page after connecting to Wi-Fi. Multiple verification methods are supported, including WeChat QR scanning, SMS verification codes, DingTalk and Enterprise WeChat. Visitors complete real-name internet access by entering mobile numbers and receiving verification codes, with no manual intervention from front desk or IT staff. Internal terminals adopt 802.1X identity authentication, while dumb terminals use ONU physical port binding paired with MAC binding to realize linkage of user identity, credentials and network access.

Log retention: 180-day local storage with one-click export of compliance reports

AINOPOL Dream-series secure multi-service gateways come with built-in local hard drives. Logs are automatically retained in rolling mode for at least 180 days, covering complete core fields: real-name information, login/logout timestamps, IP addresses, MAC addresses and accessed URLs. Pre-built standard report templates aligned with regulatory requirements enable one-click export during audits, eliminating last-minute log assembly. Equipped with a native audit engine and recognition for over 3,000 applications, the system supports full-chain traceability of security incidents down to specific users, terminals and behaviors.

Security protection: Integrated security gateway combining nine functional modules

AINOPOL Dream-series gateways integrate nine security capabilities: firewall, IPS intrusion prevention, AV antivirus, WAF web application protection, threat intelligence analysis, access control, VPN, internet behavior management and centralized management. The IPS module contains more than 10,000 predefined rules covering 26 types of vulnerability attacks, while the AV engine holds a 4-million-signature virus database. All devices must pass password strength checks before joining the network; devices with default or weak passwords are blocked from access.

Internal network isolation: Slicing isolation — production networks remain unreachable even if office networks are breached

The all-optical network leverages PON hard slicing capability. A single physical fibre is divided into multiple independent logical networks for office, production, security and visitor services, with full Layer 2 / Layer 3 isolation between segments. Slice boundaries are solidified at the protocol layer and do not rely on manual configuration. Even if attackers compromise office terminals, they cannot find a physical path to production systems. Production and office networks are isolated by default, cutting off lateral movement paths at the architectural level.

Unified management: EAAS cloud platform for consistent compliance standards across multiple sites

The EAAS cloud platform provides a real-time online user dashboard, displaying MAC address, IP, authentication account and online duration of connected devices for quick verification during inspections. For multi-branch or multi-plant deployments, headquarters can centrally manage logs and generate unified compliance reports via EAAS to maintain consistent standards. The platform regularly checks log integrity and device operating status to support one-click export of evidence for audits.

Cybersecurity compliance cannot be addressed as an afterthought ahead of inspections. Decree No.176 shifts inspections into daily routines, adopts remote offensive testing and raises penalties to the 10-million-yuan level. Enterprises relying on last-minute fixes will only accumulate greater risks.
AINOPOL Integrated Communication & Security embeds real-name authentication, log retention, security protection, slicing isolation and centralized management within the underlying network. Compliance baselines are ready when the network goes live. Self-inspection evolves from post-hoc paperwork preparation to automatic report generation by the system.

Do not wait for summonses to launch rectification. Security baselines should be established the day the network is deployed.

FAQ

Q: What will remote inspections check? What preparations should enterprises make in advance?
A: Public security authorities may conduct remote testing via vulnerability detection and penetration testing, focusing on high-risk ports, weak passwords and unpatched known vulnerabilities. Enterprises should verify that core devices do not use factory default passwords, unnecessary high-risk ports are closed, and system patches are fully updated.

Q: How long should logs be retained?
A: Decree No.176 of the Ministry of Public Security requires lawful recording and retention of user registration information and internet access logs. In practice, public security authorities generally require storage for no less than six months (180 days). Log fields must include real-name information, login/logout timestamps, IP addresses, MAC addresses and accessed URLs.

Q: What are the consequences for enterprises summoned without adequate rectification?
A: Article 6 of Decree No.176 stipulates that entities penalized for failing to fulfill statutory obligations and who do not complete rectification as required shall be designated key supervision targets. They will be prioritized in subsequent inspections with increased frequency of remote testing.