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cording to the rules, some data must be stored to act as if the December 31, 2018
in servers based in mainland China, and firms must deadline is still in place, even if its
undergo security assessments if they wish to transfer enforcement may be delayed.
certain data overseas.
Besides uncertainty about when
These rules apply to “personal data”, which includes implementation will begin, the news
identifiable data about individuals and entities, and also brings up the possibility that the
“important data”, which broadly refers to data related content of the rules could be subject
to critical infrastructure and the “public interest”. to change. The US has reportedly
Important data in particular is subject to strict review already brought up the Cybersecurity
from cyberspace and industry regulators. Law in trade negotiations with
China, so it is possible that aspects of
Besides the expansive authority the law grants to the law could change as a concession
regulators, business groups have also complained on the Chinese side.
that the terms and definitions in the law are overly
broad and vague, making it unclear what steps they That means that businesses face
should take to comply. While these criticisms were the uncertainty of both if and
partially addressed in guidelines released after the when the data transfer rules will be
initial Cybersecurity Law, businesses say that they implemented, as well as if the rules
remain unclear. themselves may change. Despite this
uncertainty, however, it is prudent for
What are the implications for businesses to assume that the rules as
the businesses? currently understood could potentially
be enforced in the near-term.■
While the cross-border data transfer requirements
have reportedly been delayed, businesses should note About China Briefing
that the delay is not an official announcement on the
public record, but a strategic choice reported in the This article is produced by Dezan Shira &
media amid trade war negotiations. Associates, which assists foreign investors
throughout Asia from offices across the
For businesses, that means they may be given more world, including in Dalian, Beijing, Shanghai,
time to comply with the rules, but there is no publicly Guangzhou, Shenzhen, and Hong Kong.
available timeframe for when they may begin to be
implemented. Accordingly, businesses should continue
South China Business Journal 6
in servers based in mainland China, and firms must deadline is still in place, even if its
undergo security assessments if they wish to transfer enforcement may be delayed.
certain data overseas.
Besides uncertainty about when
These rules apply to “personal data”, which includes implementation will begin, the news
identifiable data about individuals and entities, and also brings up the possibility that the
“important data”, which broadly refers to data related content of the rules could be subject
to critical infrastructure and the “public interest”. to change. The US has reportedly
Important data in particular is subject to strict review already brought up the Cybersecurity
from cyberspace and industry regulators. Law in trade negotiations with
China, so it is possible that aspects of
Besides the expansive authority the law grants to the law could change as a concession
regulators, business groups have also complained on the Chinese side.
that the terms and definitions in the law are overly
broad and vague, making it unclear what steps they That means that businesses face
should take to comply. While these criticisms were the uncertainty of both if and
partially addressed in guidelines released after the when the data transfer rules will be
initial Cybersecurity Law, businesses say that they implemented, as well as if the rules
remain unclear. themselves may change. Despite this
uncertainty, however, it is prudent for
What are the implications for businesses to assume that the rules as
the businesses? currently understood could potentially
be enforced in the near-term.■
While the cross-border data transfer requirements
have reportedly been delayed, businesses should note About China Briefing
that the delay is not an official announcement on the
public record, but a strategic choice reported in the This article is produced by Dezan Shira &
media amid trade war negotiations. Associates, which assists foreign investors
throughout Asia from offices across the
For businesses, that means they may be given more world, including in Dalian, Beijing, Shanghai,
time to comply with the rules, but there is no publicly Guangzhou, Shenzhen, and Hong Kong.
available timeframe for when they may begin to be
implemented. Accordingly, businesses should continue
South China Business Journal 6
