The move, the Journal said, will allow the government to further control the country's online forums and websites, although China's official news service bills it as helping the companies prevent crimes, such as fraud, and also the “spreading of rumours.”
The government didn't clarify whether it would also put these units in international tech companies operating in the Asian country. A cyber-security law was already presented earlier this year and called for tighter controls over internet companies that would require them to store user data and share it with the government.
This move is thought to be an additional way to exert control after pushback over the proposed legislation.
This article was first published in our sister publication SC Magazine.