The world has witnessed a significant surge in cybercrime over the past decade, posing substantial threats to economic stability, investor confidence, and critical infrastructure. In this context, cybersecurity has emerged as a key strategic and economic priority, particularly for rapidly digitalizing economies. This paper examines the role of cybersecurity in shaping China’s economic development, with specific objectives to: analyze the key cybersecurity frameworks and regulatory measures implemented, assess their influence on economic growth and investor confidence, and evaluate their effectiveness in safeguarding critical infrastructure and economic interests. A qualitative research methodology was adopted, drawing on document analysis of legal frameworks, institutional reports, and empirical studies on cybersecurity and economic performance. The study finds that China’s comprehensive regulatory system, anchored on the Cybersecurity Law, Data Security Law, and Personal Information Protection Law, and enforced by the Cyberspace Administration of China, has promoted firm-level digital transformation, technological upgrading, industrial modernization, and enhanced investor confidence. Secure digital environments have also facilitated cross-border trade, fintech innovation, and broader participation in global value chains. However, the study identifies a gap in empirical evidence regarding long-term macroeconomic impacts such as GDP growth and sustained foreign investment. The paper concludes that cybersecurity functions as both a protective mechanism and an enabler of economic development, underpinning China’s digital economy and industrial competitiveness. Based on these findings, the study recommends assessing macroeconomic impacts of cybersecurity, sustaining regulatory support for innovation, supporting SMEs in compliance, enhancing transparency in enforcement, and aligning cybersecurity standards with international practices to strengthen trade and investment.