January 28, 2022
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Why China's New Data Security Law Is a Warning for the Future of Data Governance - Foreign Policy

Stricter data privacy guidelines present new challenges for businesses operating in the world’s second largest economy.

Pedestrians walk past a stock market display board showing the Chinese state-owned commercial banking company Bank of China in Hong Kong on Sept. 24, 2020.
Pedestrians walk past a stock market display board showing the Chinese state-owned commercial banking company Bank of China in Hong Kong on Sept. 24, 2020."

BUDRUL CHUKRUT/LIGHTROCKET VIA GETTY IMAGES

China’s two newest data security laws—the “Data Security Law” (DSL) and the “Personal Information Protection Law” (PIPL)—came into effect at the end of 2021. Building on the 2017 Cybersecurity Law, they include new guidelines for handling data, updated enforcement measures, and additional restrictions on the transfer of data outside of China. Notably, the DSL broadly expands the extraterritorial reach of China’s existing data rules, creating a critical new set of guidelines for companies doing business with Chinese citizens—both within and outside the country’s borders—to navigate.

These new restrictions paint a complicated picture for the future of data governance, continuing a trend toward more complex regulatory regimes, competing legal frameworks, and increased restrictions on international data flows. Governments continual adoption of similar measures will increasingly disrupt an era of relatively restriction-free cross-border data flows that has been critical to the growth and expansion of many international businesses. The key points and implications from each law are broken down below.

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source: https://foreignpolicy.com/2022/01/28/china-data-governance-security-law-privacy/

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