Regionalization: Avoiding Loss of Control

Many international companies are currently considering regionalizing their production and upstream supply chains for specific markets to a greater extent and making their subsidiaries in different world regions more independent of each other. The goal is to secure supply chains by deepening regional value creation and to better meet regional customer needs through regionally manufactured… Continue reading Regionalization: Avoiding Loss of Control

The Personal Information Protection Law (PIPL) Challenges Companies

After three revisions, China’s Personal Information Protection Law (PIPL), which has received much attention abroad, will come into force on November 1, 2021. It comprehensively protects personal data, going beyond the European General Data Protection Regulation (GDPR) – a milestone in Chinese legal history. Take Big Data price discrimination, for example: it refers to the… Continue reading The Personal Information Protection Law (PIPL) Challenges Companies

The German Supply Chain Act Requires in China Compliance

The new German Supply Chain Act (LkSG) brings far-reaching new due diligence requirements for managers. They must strive to avoid risks related to the violation of human rights and the environment and to manage the company responsibly across borders. The law, which will apply from 2023, initially only affects German companies with more than 3,000… Continue reading The German Supply Chain Act Requires in China Compliance

Cybersecurity Review: Didi Is Not the Last Company

In just two days, Didi, China’s largest service platform for private car ride-hailing, has gone from investor darling to the first major case of a cybersecurity review by the Chinese government against a company after a stellar IPO on Wall Street. One of the bases of this review is the Measures for Cybersecurity Review 2020,… Continue reading Cybersecurity Review: Didi Is Not the Last Company

DSL: What is “Important Data”?

The Data Security Law (DSL), which further strengthens China’s regulation of data security, will come into effect on September 1, 2021. The critical question for foreign companies is to what extent they will be affected by the DSL. The crux of the matter here is the so-called “important data.” This special category of data is… Continue reading DSL: What is “Important Data”?

China Fights Misleading through Deepfakes

China is increasingly cracking down on illegal deepfakes – fake digital representations of people in image, video or audio formats created using artificial intelligence for the purpose of deception. The counterfeiter usually collects facial or body data of a person in the form of images and uploads them to an AI algorithm. This processes the… Continue reading China Fights Misleading through Deepfakes

China Restricts Tesla Driving Permits for Civil Servants

After Tesla was first targeted by the Chinese government earlier this year over allegations of quality shortcomings, the successful e-car manufacturer is now in the spotlight over espionage allegations and threats to national security. According to recent reports, military personnel, government officials, and employees of large state-owned enterprises are no longer allowed to use Tesla-branded… Continue reading China Restricts Tesla Driving Permits for Civil Servants

MLPS 2.0: China Steps Up Its Cybersecurity Inspections

Implementation of the Cyber Security Law through the Multi Level Protection Scheme (MLPS 2.0) is mandatory for all companies established in China. Because implementation has been slow, the government has now stepped up cybersecurity monitoring and is urging companies to fulfill their MLPS obligations. The authorities are particularly targeting the industrially strong regions, where many… Continue reading MLPS 2.0: China Steps Up Its Cybersecurity Inspections

The Obligation to Localize Data Affects More Companies

When it comes to data protection in China, data localization is inevitable for foreign companies. The basic requirements are currently mainly set out in the Cyber Security Law, and many service providers such as the financial sector, providers of public health information, and online cab booking services have issued their own data localization requirements. The… Continue reading The Obligation to Localize Data Affects More Companies

The Export Control Law Requires Export Compliance

China’s new export control law is more comprehensive than many companies doing business in China believe. It targets not only the cross-border transfer of controlled items, but also the act of a Chinese subject providing controlled items to a foreign subject within or outside its territory. The controlled items include not only goods, technology and… Continue reading The Export Control Law Requires Export Compliance