PIPL

After nearly six months since the initial draft was issued for public comments on September 28, 2023 (see here for our previous alert on that development), on March 22, 2024, the Cyberspace Administration of China (“CAC”) issued the final version of the Provisions on Promoting and Standardizing Cross-Border Data Flows (促进和规范数据跨境流动规定) ( “Provisions”) (Chinese version available here).  The Provisions take effect immediately.  

The newly finalized Provisions introduce significant changes to China’s existing cross-border data transfer regime.  These changes primarily involve exemptions from the previously mandated transfer mechanisms outlined in the Personal Information Protection Law (“PIPL”) and its implementing regulations.  Such mechanisms included undergoing a government-led security assessment, entering into a standardized contract, or obtaining personal information protection certification.  As a result, many companies that previously faced these requirements may now be exempt, easing their compliance burden for cross-border data transfers.  Importantly, the Provisions take precedence over any conflicting provisions within PIPL’s implementing regulations, including the Measures on the Standard Contract for Cross-Border Transfer of Personal Information and the Measures for Security Assessment of Cross-Border Data Transfer.Continue Reading China Eases Restrictions on Cross-Border Data Flows

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.Continue Reading China Proposes Significant Changes to Cross-Border Transfer Rules

On July 21, 2022, the Cyberspace Administration of China (“CAC”) – the country’s primary regulator for cybersecurity and privacy – imposed a fine of RMB 8.026 billion (around $1.2 billion USD) on China’s largest ride-hailing company for violating data protection laws, including the Cybersecurity Law, Data Security Law and Personal Information Protection Law. 

After more than seven months since China’s Personal Information Protection Law (《个人信息保护法》, “PIPL”) went into effect, Chinese regulators have issued several new (draft) rules over the past few days to implement the cross-border data transfer requirements of the PIPL.  In particular, Article 38 of the PIPL sets out three legal mechanisms for lawful transfers of personal information outside of China, namely: (i) successful completion of a government-led security assessment, (ii) obtaining certification under a government-authorized certification scheme, or (iii) implementing a standard contract with the party(-ies) outside of China receiving the data.  The most recent developments in relation to these mechanisms concern the standard contract and certification.Continue Reading Cross-Border Data Transfer Developments in China

On Aug. 20, 2021, the Standing Committee of China’s National People’s Congress promulgated China’s Personal Information Protection Law, which will take effect Nov. 1, 2021. Serving as China’s first comprehensive law in the personal information protection area and based on China’s Constitution, the PIPL aims to “protect the rights and interests of individuals,” “regulate personal information processing activities,” and “facilitate reasonable use of personal information” (Article 1).
Continue Reading Analyzing China’s PIPL and How It Compares to the EU’s GDPR