China is making sure that all newly discovered zero-day exploits are disclosed to the government.
Under the new rules, anyone in China who finds a vulnerability must tell the government, which will decide what repairs to make. No information can be given to “overseas organizations or individuals” other than the product’s manufacturer.
No one may “collect, sell or publish information on network product security vulnerabilities,” say the rules issued by the Cyberspace Administration of China and the police and industry ministries.
This just blocks the cyber-arms trade. It doesn’t prevent researchers from telling the products’ companies, even if they are outside of China.