On March 7, 2023, during the annual National People’s Congress (“NPC”) sessions, China’s State Council revealed its plan to establish a National Data Bureau (NDB) as part of a broader reorganization of government agencies. The plan is being deliberated by the NPC and is expected to be finalized soon. 

According to the draft plan, the new National Data Bureau will be a deputy ministry-level agency under the National Development and Reform Commission (“NDRC”), China’s main economic planning agency responsible for industrial policies.  The new bureau will be responsible for, among other thematic areas, “coordinating the integration, sharing, development, and utilization of data resources,” and “pushing forward the planning and building of a Digital China, a digital economy, and a digital society.” 

The plan specifies the new agency will take over certain portfolios currently managed by the Communist Party’s Central Cyberspace Affairs Commission (the party organ that supervises the Cyberspace Administration of China, or “CAC”) and the NDRC.  Specifically, the NDB will assume responsibility for “coordinating the development, utilization, and sharing of important national data resources, and promoting the exchange of data resources across industries and across departments,” a function currently performed by CAC.  The NDB will also absorb the NDRC teams responsible for promoting the development of the digital economy and implementing the national “big data” strategy.

The establishment of the NDB will mark an important step in the implementation of several recent Communist Party Central Committee and State Council policy documents on promoting the digital economy, including Opinions on Building Fundamental Rules Related to Data to Better Utilize Data Factors.  This document, issued in December 2022, instructed government agencies to enact legislation and regulations to facilitate efficient utilization of data, while also ensuring the compliance of data processing activities.  With the establishment of this new agency, we expect to see more regulation and policies to strengthen the nation’s digital infrastructure and to promote large-scale data utilization.

Data security, cybersecurity and personal information protection are, however, not expected to fall into the new agency’s purview.  Companies will, therefore, face another regulator in addition to various regulators they must already work with when complying with existing Chinese laws, such as the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law.  How agencies such as the CAC and Ministry of Industry and Information Technology will interact with this new agency should therefore be watched closely.  

Tags: China, Cyberspace Administration of China (CAC)
Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Yan Luo Yan Luo

Yan Luo advises clients on a broad range of regulatory matters in connection with data privacy and cybersecurity, antitrust and competition, as well as international trade laws in the United States, EU, and China.

Yan has significant experience assisting multinational companies navigating the…

Yan Luo advises clients on a broad range of regulatory matters in connection with data privacy and cybersecurity, antitrust and competition, as well as international trade laws in the United States, EU, and China.

Yan has significant experience assisting multinational companies navigating the rapidly-evolving Chinese cybersecurity and data privacy rules. Her work includes high-stakes compliance advice on strategic issues such as data localization and cross border data transfer, as well as data protection advice in the context of strategic transactions. She also advises leading Chinese technology companies on global data governance issues and on compliance matters in major jurisdictions such as the European Union and the United States.

Yan regularly contributes to the development of data privacy and cybersecurity rules and standards in China. She chairs Covington’s membership in two working groups of China’s National Information Security Standardization Technical Committee (“TC260”), and serves as an expert in China’s standard-setting group for Artificial Intelligence and Ethics.

Yan is named as Global Data Review’s “40 under 40” in 2018 and is frequently quoted by leading media outlets including the Wall Street Journal and the Financial Times.

Prior to joining the firm, Yan completed an internship with the Office of International Affairs of the U.S. Federal Trade Commission in Washington, DC. Her experiences in Brussels include representing major Chinese companies in trade, competition and public procurement matters before the European Commission and national authorities in EU Member States.

Yan is a Certified Information Privacy Professional (CIPP/Asia) by the International Association of Privacy Professionals and an active member of the American Bar Association’s Section of Antitrust Law.

Read more about Yan LuoEmail
Show more Show less
Photo of Xuezi Dan Xuezi Dan

Xuezi Dan is an associate in the firm’s Beijing office. Her practice focuses on regulatory compliance, with a particular focus on data privacy and cybersecurity. Xuezi helps clients understand and navigate the increasingly complex privacy regulatory issues in China.

She also has experience…

Xuezi Dan is an associate in the firm’s Beijing office. Her practice focuses on regulatory compliance, with a particular focus on data privacy and cybersecurity. Xuezi helps clients understand and navigate the increasingly complex privacy regulatory issues in China.

She also has experience advising clients on general corporate and antitrust matters.

Read more about Xuezi DanEmail
Show more Show less
Photo of Christopher Adams Christopher Adams

Christopher Adams advises clients on matters involving China and the region. A non-lawyer, Chris served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across the U.S. government, led negotiations with China on a broad range…

Christopher Adams advises clients on matters involving China and the region. A non-lawyer, Chris served as the Senior Coordinator for China Affairs at the Treasury Department. He coordinated China policy issues across the U.S. government, led negotiations with China on a broad range of trade and investment issues, managed the highest level U.S.-China economic policy dialogues for the Obama and Trump administrations, and advised the Treasury Secretary and other cabinet officials.

Chris helped develop and implement U.S. trade policy toward China with the Office of the United States Trade Representative (USTR) from 2007 to 2015 as Deputy Assistant U.S. Trade Representative for China Affairs, Senior Policy Advisor to the Deputy USTR, and Minister Counselor for Trade Affairs at the U.S. Embassy in Beijing, USTR’s first representative in China.

Chris directed government affairs, public relations, and corporate marketing in China for the Eastman Kodak Company from 2001 to 2006 as Chief Representative for China; Vice President, North Asia Region; and Director, Olympic Programs. During this time, Chris was elected to four consecutive terms as a Governor of the American Chamber of Commerce in China and served on the Chamber’s Public Policy Development Committee.

Chris assisted companies with market access issues as a commercial officer in the U.S. Foreign Commercial Service in Beijing and Taipei, from 1993 to 2001. Before joining the Commerce Department, Chris managed media relations and information programs with the American Institute in Taiwan and directed business advisory services at a private trade association in Washington, DC.

Read more about Christopher AdamsEmail
Show more Show less
Photo of Sean Stein Sean Stein

Sean Stein is a senior advisor in Covington’s Public Policy Practice Group. Prior to joining Covington, Sean served as the U.S. Consul General in Shanghai. He has over twenty years of diplomatic experience in Asia and has served in leadership positions in China…

Sean Stein is a senior advisor in Covington’s Public Policy Practice Group. Prior to joining Covington, Sean served as the U.S. Consul General in Shanghai. He has over twenty years of diplomatic experience in Asia and has served in leadership positions in China, Washington, and the region. His insights informed policy making at the highest levels in Washington and he assisted dozens of U.S., Chinese, and international firms to develop strategies, manage risk, and identify opportunities for growth in response to the changing U.S.-China relationship. Sean also serves as the Chairman of the American Chamber of Commerce in China and previously served as the Chairman of the American Chamber of Commerce in Shanghai.

Sean, a non-lawyer, is a key resource to businesses on issues related to political risk, public affairs, problem solving, and communications. He regularly assists companies facing acute or long-term issues to resolve them, often through discussions with U.S. and Chinese government officials. He is well placed to provide strategic advice to U.S. and international clients on issues relating to securing market access and protecting investments in China, assessing risk, navigating trade controls, sanctions, and supply chain restrictions, and resolving disputes and regulatory investigations.

Sean is available to brief clients on developments in within China and China’s relations with other countries and regions.

Read more about Sean SteinEmail
Show more Show less