China Proposes to Lighten Up Requirements for Cross-Border Data Transfers

Restrictions on cross-border data transfer have long been a cause for concern for foreign companies operating in China, and the Chinese regulators are seeking to address these concerns by lightening up the onerous requirements for cross-border data transfers.

On 28 September 2023, the Cyber Administration of China ("CAC") issued the Regulations for Standardizing and Promoting Cross-Border Data Flow ("Draft Regulations") to solicit public comments. The Draft Regulations appear to overturn some of their previous requirements in relation to cross-border data transfers. If adopted into law in its current form, the Draft Regulations would:

• Create exemptions for many companies that export data or personal information from China in certain common business scenarios from otherwise mandatory data export approval procedures.
• Raise the data transfer volume thresholds for the CAC's Security Assessment (a more onerous legal mechanism), and leave transfers of low-volume data to less onerous legal mechanisms.
• Allow free trade zones to create "Negative Lists" for cross-border data transfers that are subject to mandatory data export procedures.

Almost half a year has lapsed from the day that the Draft Regulations were publicized, many foreign companies are still waiting for the Draft Regulations to be formally issued. In an official press conference on 5 February 2024, the director of the Department of Foreign Investment management under the Ministry of Commerce said that the Cyberspace Administration of China is contemplating and improving the Draft Regulations and preparing for its promuldation.

In this webinar, Samuel Yang, Partner at Anjie Broad Law Firm, will introduce all that you need to know about the Draft Regulations, their implications on your business, as well as observations of how multiple national companies are dealing with a time of uncertainty and their practical considerations.

Please contact info@dcbf.dk if you have any questions.