How will Chinese Regulations on Cross-Border Data Transfers Affect Data Compliance?

(By Gao Tianyi and You Yunting) China’s legal system for dealing with data security and personal information protection standards has been established*, but more detailed rules and standards are in the process of being formulated. This article will mainly discuss the new requirements for, and new changes in, data localization and compliance management regarding cross-border data transfers.

The analysis shows that those who use data from China should keep abreast of changes in policy orientation within the country, in order to avoid potential regulatory risks.


China Laws and Regulations Update in July 2021

1. Data Security Law

Promulgated by the Standing Committee of the National People’s Congress

Promulgation date: 10 June 2021

Implementation date: 1 September 2021

Document number: Chinese president order 84

The data security law is an important move for development of digital economy. Over recent years we have continued developing network and digital industries of our country and building an intelligent society. Digital economy where data are used as new essential production materials thrives. Data competition has become an important part of international competition. Data Security Law attaches equal importance to security and development, includes provisions relating to measures for data security and development and the openness of government data and helps legal, reasonable and effective use of data to take full advantage of data as fundamental resources and innovation power, accelerate the formation of digital economy led and sustained by innovation and give more support to economic and social development of our country.