(Source: https://pltfrm.com.cn)
Introduction
China’s data protection framework—led by PIPL, DSL, and CSL—has become one of the strictest in the world. A single compliance failure can trigger fines of up to 50 million RMB or 5% of annual China revenue, campaign suspensions, and irreversible reputational damage. For overseas brands, understanding and implementing these laws is now as critical as product registration or platform selection.
1. Understanding the Three Core Laws Governing Data in China
1.1 Personal Information Protection Law (PIPL) Scope: Applies to any processing of Chinese citizens’ personal data, even if the company is based overseas. Separate Consent Rule: Marketing consent, profiling consent, and cross-border transfer consent must be obtained separately—never bundled.
1.2 Data Security Law (DSL) & Cybersecurity Law (CSL) Graded Protection System: Companies must classify data into five levels and implement corresponding security measures (MLPS 2.0 certification often required for Level 3+). Critical Information Infrastructure Operators (CIIO): E-commerce, payment, and logistics platforms are frequently designated as CIIO, triggering stricter rules.
2. Cross-Border Data Transfer Requirements That Trip Up Most Overseas Brands
2.1 Three Legal Pathways Security Assessment (CAC): Mandatory for companies handling data of over 1 million users or transferring large volumes of sensitive data abroad. Standard Contract Clause (SCC): Most practical route for mid-sized brands; requires filing with CAC within 60 days of signing. Personal Information Protection Certification: Fastest option via recognized certification bodies (usually 2–3 months).
3. User Rights and Operational Obligations
3.1 Mandatory Rights Under PIPL Right to Withdraw Consent: Brands must provide a one-click withdrawal mechanism for all marketing activities. Right to Access & Deletion: Requests must be fulfilled within 15 working days; failure leads to direct complaints to CAC.
3.2 Appointed Representatives & DPO China-Based Representative: Overseas entities without a local entity must appoint a China-based organization or individual responsible for data compliance.
4. Advertising & Marketing-Specific Data Rules
4.1 Retargeting and Lookalike Audiences Granular Consent Required: Using WeChat, Douyin, or Tencent pixels for retargeting requires explicit opt-in pop-ups. Automated Decision-Making Transparency: If pricing or product recommendations are AI-driven, users must be informed and given an opt-out.
Case Study: How a European Beauty Brand Avoided a 38 Million RMB Fine
A leading European beauty brand was using EU-based servers and Meta + Google pixels without localized consent management. After receiving a CAC investigation notice, we implemented Tencent TAG local pixels, filed Standard Contract Clauses, appointed a Shanghai-based data protection representative, and redesigned consent pop-ups across Tmall, Douyin, and Xiaohongshu within 21 days. The brand passed the follow-up audit with zero penalties and saw a 180% increase in compliant retargeting efficiency.
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!
