On September 28, 2023, the Cyberspace Administration of China (“CAC”) issued draft Provisions on Standardizing and Promoting Cross-Border Data Flows (Draft for Comment) (规范和促进数据跨境流动规定（征求意见稿）) (draft “Provisions”) (Chinese version available here) for a public consultation, which will conclude on October 15, 2023.
The draft Provisions propose significant changes to the existing cross-border data transfer regime established under China’s Personal Information Protection Law (“PIPL”). Specifically, the draft Provisions provide certain exemptions to the requirement to adopt a transfer mechanism under Article 38 of the PIPL. In addition, the draft Provisions significantly lower the thresholds that trigger the obligation to undergo a government-administered security assessment or adopt Standard Contracts. Moreover, in the event of a conflict between the draft Provisions and the PIPL’s implementing regulations (including the Measures on the Standard Contract for the Cross-Border Transfer of Personal Information and the Measures for Security Assessment of Cross-Border Data Transfer), the draft Provisions would prevail.