China's new Cybersecurity Law, which comes into effect on Thursday, will not limit data flow or affect world trade, the cybersecurity watchdog has said.

The Cyberspace Administration of China said on Wednesday that the law, adopted by the top legislature in November, requires key information infrastructure operators to store personal information and key data in the country in order to 'safeguard national sovereignty in cyberspace as well as State security without stopping cross-border data exchanges'.

'The data that will be stored will be of importance to the country, not an enterprise or individual. The law only targets operators of key infrastructure, not all internet operators,' the watchdog said, adding that collected data could be released if reviews prove it is not harmful to State security.

'Data flow is a key aspect of globalization and fundamental to pushing forward the Belt and Road Initiative. We'd like to boost data flow in line with the law, and discuss the issue with other countries.'

In response to concerns from some foreign institutes that the law may affect trade, the administration said the law is not intended to prevent overseas companies, technologies or products from entering the Chinese market.