On April 10, 2022, the Chinese government announced to accelerate the construction of the unified domestic market. Part of this is to also establish a data market to promote Big Data applications and AI development, focusing on data security and control of cross-border data transfer. To be allowed to provide data outside China, data processors must conduct security assessments in accordance with relevant regulations before providing important data and personal information collected and generated in their domestic operations outside China.
To promote a unified market for data sharing, China has established data exchanges in several provinces and cities. To date, data exchanges have been established in Beijing, Shanghai, Shenzhen, Fujian, and Chongqing. Beijing International Data Exchange (BJIDEX) is currently the first Chinese data exchange that can provide cross-border data transfer services and has set itself on the flag of becoming an internationally significant cross-border data exchange center.
To help enterprises deal with cross-border data transfer and promote the smooth development of their international businesses, BJIDEX has thoroughly studied the needs of multinational enterprises, developed and tested cross-border data compliance management services, and thus built the Beijing Data Hosting Service Platform. The platform provides data hosting, desensitization, fusion computing and archiving services. BJIDEX verifies the qualification of companies or individuals before they are allowed to trade data, as well as the legitimacy of data sources, and provides a graded data protection system according to the classification of the data. In addition, BJIDEX plans to offer data asset pricing and dispute resolution services. BJIDEX further provides compliance consulting, hosting governance, and technical audit services for domestic and foreign companies, and advocates for more robust cross-border data regulation.
Recently, BJIDEX signed a service contract with a multinational company, hosting the storage and desensitization of that company’s China-generated data through its Data Hosting Service Platform. For multinational companies operating in China, in addition to cyber security and data protection, compliance in cross-border data transfer is becoming increasingly important.