Internet information service providers could face fines up to 1 million yuan ($155,000) or even have their business licenses revoked if they fabricate or spread rumors such as those related to epidemics that disturb public order and cause serious consequences, a draft regulation said.

Such punishments could also be given to those making or broadcasting fake information on public security, dangerous cases, natural disasters, production security and food and drug safety, according to the draft revision to the regulation on administration of internet information services.

The revised draft, made by the Cyberspace Administration of China, the Ministry of Industry and Information Technology, and the Ministry of Public Security, was released by the administration on its website on Jan 8, soliciting public opinions by Feb 7.

To promote the healthy and orderly development of the internet information service industry, the administration stipulated that amending the rules will also protect people's legitimate rights and maintain national security and public interests.

Zhu Wei, deputy director of the Communication Law Research Center at the China University of Political Science and Law, welcomed the revisions, especially the highlight of information security.

He said the draft is a new step to specify the country's Cybersecurity Law, which came into force in June 2017.

Under the draft, "individuals or organizations engaged in the industry" not only means internet information service providers, such as those running livestreaming or online shopping platforms, but also includes entities helping the providers access the internet, such as network agents, technology support or space rentals.

Zhu lauded the extension, saying it "adapts to the fast developing internet era where more diversified services and technologies are springing up".

Wang Sixin, a professor specializing in internet laws and regulations from Communication University of China, said the revised draft also clarifies for the first time the responsibilities for government agencies, including in cyberspace, industry and technology and public security.

"Such stipulations will help the departments coordinate in cyberspace governance, making their law enforcement more efficient," he said.

Wang regarded the draft as a whole process management for the industry, "as it not only tells people how to start the business of internet information services, but also lets them know what punishments they will face for wrongdoing."

The draft also touches on some hot issues in cyberspace, such as real-name registration, privacy protection and information security.

The draft states that anyone in the industry cannot make, copy, post or spread information that insults or slanders others, or harms others' reputation, privacy or intellectual property rights.

It also says providing aid, such as offering technology or device support, to make, copy, post or spread such information must be banned.