China adopted a controversial cyber security law on Monday to counter what Beijing says are growing threats such as hacking and terrorism, but the law triggered concerns among foreign business and rights groups.

The legislation, passed by China’s largely rubber-stamp parliament and set to take effect in June 2017, is an “objective need” of China as a major internet power, a parliament official said.

Overseas critics of the law say it threatens to shut foreign technology companies out of various sectors deemed “critical”, and includes contentious requirements for security reviews and for data to be stored on servers in China.

Rights advocates also say the law will enhance restrictions on China’s Internet, already subject to the world’s most sophisticated online censorship mechanism, known outside China as the Great Firewall.

Yang Heqing, an official on the National People’s Congress standing committee, said the Internet was already deeply linked to China’s national security and development.

“China is an internet power, and as one of the countries that faces the greatest internet security risks, urgently needs to establish and perfect network security legal systems,” he told reporters at the close of a bimonthly legislative meeting.

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