(Source: https://pltfrm.com.cn)
Data protection and cybersecurity compliance requirements for foreign businesses operating in China have become increasingly important due to the country’s evolving regulatory landscape.
- Cybersecurity Law (CSL): China’s Cybersecurity Law, implemented in 2017, imposes several requirements on businesses operating in China, including foreign entities:a. Data Localization: Critical data operators and key information infrastructure operators are required to store personal and important data within China’s borders. The specific scope of this requirement can vary by industry and may include financial, healthcare, and other sectors.b. Data Protection Impact Assessments (DPIAs): Organizations handling personal data may be required to conduct DPIAs to assess data protection risks.c. Network Security: Implement cybersecurity measures, including intrusion detection, monitoring, and incident reporting. Critical information infrastructure operators must meet specific security requirements.d. Data Export Restrictions: Cross-border transfer of data is subject to regulatory approval and may require the use of approved security assessments or mechanisms.e. Data Breach Notification: Notify authorities and affected individuals in the event of a data breach. Requirements include timely reporting and mitigation efforts.
- Personal Information Protection Law (PIPL): In 2021, China enacted the PIPL, which focuses on the protection of personal data. Key provisions include:a. Consent: Obtain clear and informed consent from individuals before collecting and processing their personal data.b. Data Subject Rights: Allow data subjects to access, correct, delete, and transfer their personal data.c. Data Processing Restrictions: Limit the purpose and scope of data collection and processing to what is necessary for the stated purpose.d. Data Transfers: Cross-border transfers of personal data may require regulatory approval, and certain mechanisms or agreements may be necessary.e. Data Protection Officers (DPOs): Appoint DPOs to oversee data protection compliance, particularly if you process large volumes of personal data.
- Other Regulations: Depending on your industry and activities, additional sector-specific regulations may apply, such as those governing financial services or healthcare.
- Compliance and Reporting: Ensure ongoing compliance with these regulations and be prepared to report to regulatory authorities as needed. Cooperation with regulatory inspections is crucial.
- Penalties: Non-compliance with cybersecurity and data protection laws in China can result in fines, warnings, business suspensions, and even criminal liability for responsible individuals.
- Cross-Border Data Transfer Mechanisms: Consider implementing standard contractual clauses (SCCs) or other approved mechanisms to facilitate the lawful transfer of personal data across borders.
- Privacy Policies: Develop clear and transparent privacy policies that inform individuals about your data processing practices.
Therefore, it is essential for foreign businesses operating in China to stay informed about the latest legal developments and seek legal counsel or consultation with local experts to ensure compliance with all data protection and cybersecurity requirements.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
