CHINA
Since October 2020
Pillar Cross-border data policies |
Sub-pillar Conditional flow regime
Amendment to the Information Security Technology – Personal Information Security Specification (GB/T 35273-2020) 《信息安全技术-个人信息安全规范》(GB/T 35273-2020)修正案
The 2020 Specification provides that where personal biometric information must not be shared or transferred unless actually essential for business needs in which case the personal information subject must be separately informed of the purpose, types of biometrics involved, identification of the recipient and its data security capacity and the personal information subject consent must be explicitly obtained (9.2.i).
Coverage Horizontal
CHINA
N/A
Pillar Cross-border data policies |
Sub-pillar Participation in trade agreements committing to open cross-border data flows
Lack of participation in agreements with binding commitments on data flows
China has not joined any agreement with binding commitments on data flows.
Coverage Horizontal
CHINA
Since November 2012, entry into force in February 2013
Pillar Cross-border data policies |
Sub-pillar Conditional flow regime
Guidelines for Personal Information Protection Within Public and Commercial Services Information Systems 《公共及商用服务信息系统个人信息保护指南》
Article 5.4.5. of the Guidelines for Personal Information Protection Within Public and Commercial Services Information Systems prohibit the transfer of personal data abroad without express consent of the data subject, government permission or explicit regulatory approval "absent express consent of the subject of the personal information, or explicit legal or regulatory permission, or absent the consent of the competent authorities". If these conditions are not fulfilled, "the administrator of personal information shall not transfer the personal information to any overseas receiver of personal information, including any individuals located overseas or any organizations and institutions registered overseas."
Although the Guidelines are a voluntary technical document, they might serve as a regulatory basis for judicial authorities and lawmakers.
Although the Guidelines are a voluntary technical document, they might serve as a regulatory basis for judicial authorities and lawmakers.
Coverage Public and Commercial Services Information Systems
Sources
- https://digichina.stanford.edu/work/information-security-technology-guidelines-for-personal-information-protection-on-public-and-commercial-service-information-systems/
- https://www.tisi.org/16744
- https://www.dlapiperdataprotection.com/system/modules/za.co.heliosdesign.dla.lotw.data_protection/functions/handbook.pdf?country-1=CN
- http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2280037
- http://law.emory.edu/elj/content/volume-64/issue-3/articles/data-nationalism.html
- http://www.insideprivacy.com/international/china/china-releases-national-standard-for-personal-information-collected-over-information-systems-industr/
- http://www.globaltradealert.org/measure/china-introduced-limitations-transfer-personal-data-abroad
- http://www.lehmanlaw.com/resource-centre/faqs/information-technology/miit-issues-comprehensive-regulation-on-collection-and-use-of-personal-information-by-internet-and-telecommunication-service-provid...
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CHINA
Since November 2021
Pillar Cross-border data policies |
Sub-pillar Conditional flow regime
Personal Information Protection Law《个人信息保护法》
The Personal Information Protection Law (Art. 40) provides that critical information infrastructure operators and personal information processors handling personal information must store personal information collected and produced within the borders of China. Where such information needs to be provided abroad, they shall pass a security assessment organized by the national cyberspace department. Also, according to Art. 38, the processors of personal information must apply one of the conditions to provide information outside of PRC: passing the security assessment organized by the national cyberspace department in accordance with Art. 40 of this Law; obtaining personal information protection certification from the relevant specialized institution according to the provisions issued by the national cyberspace department; concluding a contract stipulating both parties' rights and obligations with the overseas recipient in accordance with the standard contract formulated by the national cyberspace department; and meeting other conditions set forth by laws and administrative regulations and by the national cyberspace department.
Where a processor of personal information provides personal information outside the People's Republic of China, it is required to inform the individual of the name or names of the overseas recipient, the contact information, the purpose of processing, the manner of processing, the type of personal information, as well as the manner and procedure for the individual to exercise his or her rights under this Law with the overseas recipient, and obtain the individual's individual consent (Art. 39). Personal information processors shall not provide personal information stored in the People's Republic of China to foreign judicial or law enforcement agencies without the approval of the competent authorities of the People's Republic of China (Art. 41).
Where a processor of personal information provides personal information outside the People's Republic of China, it is required to inform the individual of the name or names of the overseas recipient, the contact information, the purpose of processing, the manner of processing, the type of personal information, as well as the manner and procedure for the individual to exercise his or her rights under this Law with the overseas recipient, and obtain the individual's individual consent (Art. 39). Personal information processors shall not provide personal information stored in the People's Republic of China to foreign judicial or law enforcement agencies without the approval of the competent authorities of the People's Republic of China (Art. 41).
Coverage Horizontal
CHINA
Since November 2016, entry into force in June 2017
Since July 2022, entry into force in September 2022
Since July 2022, entry into force in September 2022
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Cybersecurity Law《中华人民共和国网络安全法》
Outbound Data Transfer Security Assessment Measures《数据出境安全评估办法》
Outbound Data Transfer Security Assessment Measures《数据出境安全评估办法》
Art. 37 of the Cybersecurity Law requires "key information infrastructure" operators to store personal information and critical data within China. Personal information and critical data can be stored outside of China where there is a genuine need for business; in such case a "security assessment" needs to be conducted in accordance with procedures formulated by the Cyberspace Administration of China (CAC) in collaboration with other authorities.
Art. 4 of the Outbound Data Transfer Security Assessment Measures, promulgated by the CAC, outlines four situations where a security assessment is necessary before an outbound transfer can take place: 1) In cases where the transfer concerns “important data”, which is broadly defined as data that could endanger national security, economic operation, social stability, public health and safety; 2) In case the transfer concerns personal data by a critical information infrastructure operator or processor of personal information that processed data for 1 million or more individuals; 3) Also in the case of transfers concerning personal data by a personal information processor that has made outbound transfers of personal information of 100,000 individuals or sensitive personal information of 10,000 persons in the preceding year; 4) Lastly, the CAC may also require security assessment in other situations which are not further defined.
Art. 8 of the Measures covers the factors that the CAC will take into account when undertaking a security assessment. The assessment includes a wide range of aspects, for example:
- The risks that the transfer may entail for national security or public interests, among other policy objectives;
- Legitimacy, necessity and method of transfer;
- Whether the level of data protection in the recipient country meets the requirements of laws in China;
- Sensitivity of the data and risks of being tampered with abroad;
- Agreed safeguard measures between the data processor and data recipient;
- Any other matter that the CAC deems necessary.
In case of unfavourable outcomes, the data handler can ask the CAC for a re-assessment with a final decision. In case of a positive decision, the permission to transfer data abroad is valid for two years but if substantial changes in the risk factors arise, a new assessment might be needed.
Art. 4 of the Outbound Data Transfer Security Assessment Measures, promulgated by the CAC, outlines four situations where a security assessment is necessary before an outbound transfer can take place: 1) In cases where the transfer concerns “important data”, which is broadly defined as data that could endanger national security, economic operation, social stability, public health and safety; 2) In case the transfer concerns personal data by a critical information infrastructure operator or processor of personal information that processed data for 1 million or more individuals; 3) Also in the case of transfers concerning personal data by a personal information processor that has made outbound transfers of personal information of 100,000 individuals or sensitive personal information of 10,000 persons in the preceding year; 4) Lastly, the CAC may also require security assessment in other situations which are not further defined.
Art. 8 of the Measures covers the factors that the CAC will take into account when undertaking a security assessment. The assessment includes a wide range of aspects, for example:
- The risks that the transfer may entail for national security or public interests, among other policy objectives;
- Legitimacy, necessity and method of transfer;
- Whether the level of data protection in the recipient country meets the requirements of laws in China;
- Sensitivity of the data and risks of being tampered with abroad;
- Agreed safeguard measures between the data processor and data recipient;
- Any other matter that the CAC deems necessary.
In case of unfavourable outcomes, the data handler can ask the CAC for a re-assessment with a final decision. In case of a positive decision, the permission to transfer data abroad is valid for two years but if substantial changes in the risk factors arise, a new assessment might be needed.
Coverage Key information infrastructure operators
Sources
- https://platform.dataguidance.com/sites/default/files/en_cybersecurity_law_of_the_peoples_republic_of_china_1.pdf
- https://www.gov.cn/xinwen/2016-11/07/content_5129723.htm
- http://www.cac.gov.cn/2022-07/07/c_1658811536396503.htm
- https://www.dataguidance.com/comparisons/data-transfers
- https://www.oecd-ilibrary.org/deliver/179f718a-en.pdf?itemId=%2Fcontent%2Fpaper%2F179f718a-en&mimeType=pdf
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CHINA
Since December 2015, in force since January 2016
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Map Management Regulations 《地图管理条例》
Online maps are required to set up their server inside of the country (Art. 34 of Map Management Regulations) and must acquire an official certificate.
Coverage Maps services
Sources
- http://www.citylab.com/politics/2015/12/china-cracks-down-on-politcally-incorrect-maps/421032/
- http://shanghaiist.com/2015/12/17/dont_get_caught_with_wrong_maps.php
- http://www.businessinsider.com/companies-must-keep-map-data-on-servers-within-chinas-borders-2015-12?IR=T
- http://english.gov.cn/policies/latest_releases/2015/12/14/content_281475253904932.htm
- https://www.global-regulation.com/translation/china/3024692/map-regulations.html
- http://www.gov.cn/zhengce/content/2015-12/14/content_10403.htm
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CHINA
Since September 2000, last amended in February 2016
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Telecommunications Regulations of the People's Republic of China 《中华人民共和国电信条例》
China's Telecommunications Regulations require all data collected inside China to be stored on Chinese servers. It is reported that as a result of this regulation, Hewlett Packard, Qualcomm, and Uber were required to divest more than 50% of their businesses in China to Chinese companies, to avoid fines.
Coverage Telecommunication services and cloud services
CHINA
Since May 2014
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Administrative Measures for Population Health Information (For Trial Implementation) 《人口健康信息的管理措施(试行)》
Population health information needs to be stored and processed within China. In addition, storage is not allowed overseas (Art. 10).
Coverage Health sector
Sources
- https://www.cov.com/~/media/files/corporate/publications/2014/07/new_chinese_requirements_on_management_of_health_information.pdf
- http://www.ft.com/intl/cms/s/0/e11024f4-e281-11e4-aa1d-00144feab7de.html#axzz3wTfZMxNh
- http://uk.practicallaw.com/4-519-9017
- http://www.cac.gov.cn/2014-08/20/c_1112064075.htm
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CHINA
Since July 2016, in force since November 2016
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Interim Measures for the Administration of Online Taxi Booking Business Operations and Services 《网络预约出租汽车经营服务管理暂行办法》
China instituted a licensing system for online taxi companies which requires that the personal information and business data should be stored and used in mainland China and must not be transferred outside of China (Art. 27 of the Interim Measures for the Administration of Online Taxi Booking Business Operations and Services). Such information should be retained for two years, except when otherwise required by other laws and regulations. The Measurement also regulates that servers of the taxi companies should be set up in Mainland China, with a network security management system and technical measures for security protection in compliance with regulations (Art. 5.2).
Coverage Online taxi sector
Sources
- http://www.ft.com/intl/cms/s/0/d08338b6-6fde-11e5-ad6d-f4ed76f0900a.html#axzz3wTfZMxNh
- http://www.cnbc.com/2016/07/28/uber-didi-hail-chinas-new-taxi-app-rules.html
- https://thelawreviews.co.uk/title/the-privacy-data-protection-and-cybersecurity-law-review/china
- http://www.gov.cn/xinwen/2016-07/28/content_5095584.htm
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CHINA
Since January 2011, entry into force in May 2011
Since February 2020
Since February 2020
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Yinfa No. 17 [2011], Notice of the People's Bank of China on Protecting Personal Financial Information by Banking Financial Institutions 《人民银行关于银行业金融机构做好个人金融信息保护工作的通知》
Personal Financial Information Protection Technical Specification 《个人金融信息保护技术规范》
Personal Financial Information Protection Technical Specification 《个人金融信息保护技术规范》
The "Notice of the People's Bank of China on Protecting Personal Financial Information by Banking Financial Institutions" states that the processing of personal information collected by commercial banks must be stored, handled and analysed within the territory of China and such personal information is not allowed to be transferred overseas (paragraph 6).
The Personal Financial Information Protection Technical Specification (PFI Specification) regulates “any personal information collected, processed and stored by Financial Institutions during the provision of financial products and services" (PFI). The PFI specification requires that PFI collected or generated in mainland China is stored, processed and analysed within the territory. Further, under the PFI Specification, where there is a business need for cross-border transfer of personal financial information (PFI) and the financial institution obtains explicit consent to the transfer from the personal financial information subjects (i.e the persons under the PFI Specification providing the data), conducts a security assessment and then supervises the offshore recipient to ensure responsible processing, storage and deletion of PFI (Section 7.1.3).
The Personal Financial Information Protection Technical Specification (PFI Specification) regulates “any personal information collected, processed and stored by Financial Institutions during the provision of financial products and services" (PFI). The PFI specification requires that PFI collected or generated in mainland China is stored, processed and analysed within the territory. Further, under the PFI Specification, where there is a business need for cross-border transfer of personal financial information (PFI) and the financial institution obtains explicit consent to the transfer from the personal financial information subjects (i.e the persons under the PFI Specification providing the data), conducts a security assessment and then supervises the offshore recipient to ensure responsible processing, storage and deletion of PFI (Section 7.1.3).
Coverage Financial sector
Sources
- http://www.pbc.gov.cn/english/130733/3911512/index.html
- http://www.gov.cn/gongbao/content/2011/content_1918924.htm
- https://www.shengjingbank.com.cn/upload/Attach/mrbj/2830664356.pdf
- https://www.globaltradealert.org/state-act/7735/china-notice-on-financial-institutions-protection-over-personal-financial-information
- https://e.linklaters.com/67/921/downloads/20200304-pboc-publishes-new-data-protection-guidelines-for-financial-institutions.pdf
- http://uk.practicallaw.com/4-519-9017
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CHINA
N/A
Pillar Telecom infrastructure & competition |
Sub-pillar Presence of an independent telecom authority
Lack of independent telecom authority
The Ministry of Industry and Information Technology (MIIT) acts as the telecommunications authority in the country and therefore there is no independence from the government in its decision-making process.
Coverage Telecommunications sector
CHINA
Since November 2021
Pillar Cross-border data policies |
Sub-pillar Ban to transfer and local processing requirement
Personal Information Protection Law《个人信息保护法》
The Personal Information Protection Law (Art. 40) provides that critical information infrastructure operators and personal information processors handling personal information must store personal information collected and produced within the borders of China. Where such information needs to be provided abroad, they shall pass a security assessment organized by the State cybersecurity and information department.
Coverage Horizontal
CHINA
Since February 2002
Pillar Telecom infrastructure & competition |
Sub-pillar Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
China has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector
CHINA
Since April 2001, last amended in October 2021
Since September 2000, last amended in February 2016
Since March 2016
Since September 2017
Since September 2000, last amended in February 2016
Since March 2016
Since September 2017
Pillar Telecom infrastructure & competition |
Sub-pillar Other restrictions to operate in the telecom market
Rules for The Implementation of The Law of The People's Republic of China on Foreign-capital Enterprises《中华人民共和国外资企业法实施细则》,第十一条
Telecommunications Regulations of the People's Republic of China 《中华人民共和国电信条例》
Classified Catalogue of Telecommunications Services 《电信服务分类目录》
Administrative Measures for the Licensing of Telecommunication Business 《电信业务经营许可管理办法》
Telecommunications Regulations of the People's Republic of China 《中华人民共和国电信条例》
Classified Catalogue of Telecommunications Services 《电信服务分类目录》
Administrative Measures for the Licensing of Telecommunication Business 《电信业务经营许可管理办法》
Telecoms business activities in China are divided into Basic Telecom Services (“BTS”) and Value-added Telecom Services (“VATS”). BTS refers to the business of providing public network infrastructure, public data transmission and basic voice communications services. VATS refers to the telecoms and information services provided through public network infrastructure. Both BTS and VATS operators require a license and VATS licenses are further divided into single province licenses and cross-provincial licenses. A BTS licence is valid for either five or ten years (depending on the type of telecom service involved) and a VATS licence is valid for five years. Telecoms operators must also meet the minimum registered capital requirements in order to be granted licences. For BTS operators, the minimum registered capital is RMB 100 million for single province providers and RMB 1 billion for nationwide providers. For VATS operators, the minimum registered capital is RMB 1 million for single province providers and RMB 10 million for nationwide providers. China also maintains restrictions on VATS services and these restrictions include opaque and arbitrary licensing procedures, foreign equity caps and the unjustified moratoria on the issuance of new licenses. As a result, only a few dozen foreign-invested suppliers have secured licenses to provide value-added telecommunications services, while there are thousands of licensed domestic suppliers.
Additionally, foreign companies must obtain VATS licenses only through a joint-venture company. In this regard, the European Chamber of Commerce in China has complained about the multiple value added services licenses required, suggesting the approval of one single value added service license that allows for the provision of multiple VATS.
Additionally, foreign companies must obtain VATS licenses only through a joint-venture company. In this regard, the European Chamber of Commerce in China has complained about the multiple value added services licenses required, suggesting the approval of one single value added service license that allows for the provision of multiple VATS.
Coverage Basic and value-added telecommunication services
Sources
- http://www.fdi.gov.cn/1800000121_39_2273_0_7.html
- http://www.china.org.cn/business/laws_regulations/2007-06/22/content_1214774.htm
- https://ustr.gov/sites/default/files/2015-Section-1377-Report_FINAL.pdf
- http://www.davispolk.com/sites/default/files/2015_01_27_China_Antitrust_Review_2014.pdf
- http://www.izvoznookno.si/Dokumenti/Information%20and%20Communication%20Technology_EN.pdf
- http://english.mofcom.gov.cn/article/policyrelease/Businessregulations/201303/20130300045769.shtml#:~:text=Article%202%20Foreign-capital%20enterprises,and%20public%20interests%20of%20China.
- https://ustr.gov/sites/default/files/2019_National_Trade_Estimate_Report.pdf
- http://www.gov.cn/zhengce/2020-12/26/content_5574368.htm
- http://www.gov.cn/gongbao/content/2014/content_2692699.htm
- http://www.gov.cn/gongbao/content/2017/content_5240090.htm
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CHINA
Since August 2020
Pillar Telecom infrastructure & competition |
Sub-pillar Other restrictions to operate in the telecom market
Notice of the General Office of the Ministry of Commerce on Foreign investment in the Internet, Vending machine Method of Sales Project Approval and Management of the Relevant Issues 《商务部办公厅关于外商投资互联网、自动售货机方式销售项目审批管理有关问题的通知》
Foreign-invested enterprises using their own network platform to provide network services for other parties should apply to the Ministry of Industry and Information Technology value-added telecommunications business license; enterprises using their own network platform directly engaged in the sale of goods, should be filed with the telecommunications management department.
Coverage Network services provided by the foreign-invested enterprises