Cross-Border Data Transfer outside China: Attentive to the Rectification Period

Companies operating in China should be attentive to the Measures on Security Assessment of Cross-Border Data Transfers (Measures), published on July 7, 2022, as they take effect as early as September 1, 2022.  Among other things, the Measures require data processors to conduct a security assessment when: 1. Providing critical data outside of China. 2.… Continue reading Cross-Border Data Transfer outside China: Attentive to the Rectification Period

Compliance Requirements for Software Development Kits (SDK)

China continues to regulate the collection of private data in apps. For example, the importance of compliance with software development kits (SDKs) has increased significantly. Since June 2021, the authorities have been cracking down on the illegal use of SDKs in apps with SDK Security Special Actions. A software development kit is a collection of… Continue reading Compliance Requirements for Software Development Kits (SDK)

Establishment of Corporate IP Compliance

In the context of building a dual circulation system and creating a unified domestic market, China is guiding all enterprises to strengthen their compliance management to prevent business risks at home and abroad, promote modernization and transformation, and improve competitiveness. The compliance system is to cover areas such as market transactions, environment, human resources, finance,… Continue reading Establishment of Corporate IP Compliance

Certification for Systems of Data Security Management

The Chinese Government has been encouraging companies to have mobile app certifications for some time. Search engines and app stores are encouraged to prioritize applications from companies that have certifications. Now, enterprise data security management certification is also to be developed. In early June 2022, the General Administration of Market Supervision and the Office of… Continue reading Certification for Systems of Data Security Management

New Data Exchanges in China

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… Continue reading New Data Exchanges in China

Data Compliance Can Prevent Penalties

Due to the three laws in the field of data – the Cyber Security Law, the Data Security Law and the Personal Information Protection Law – companies in China must set up a complete system to comply with data protection and security regulations. A good data compliance system can avoid warnings from administrative authorities during… Continue reading Data Compliance Can Prevent Penalties

Recoupling through Controlled Localization

The Ukraine conflict is increasingly impacting the business of foreign companies in China. China is responding to massive Western sanctions on Russia by accelerating decoupling in order to become self-sufficient more quickly. Western companies are responding by recoupling their Chinese branch or subsidiary through controlled localization. Headquarters are putting their Chinese subsidiaries back on a… Continue reading Recoupling through Controlled Localization

New Specifications: IT Security of Apps in China

On November 1, 2022, the national standard GB/T 41391-2022 “Information Security Technology Basic Requirements for Mobile Internet Applications (Apps) Collecting Personal Information,” published in April, will come into force. It applies to all app operators in China and is intended to regulate personal information collection activities. This standard is relevant to all companies that operate… Continue reading New Specifications: IT Security of Apps in China

Politics of the Common Good: What Companies Need to Watch Out For

A policy change is underway in China that is causing foreign companies to strategically reevaluate how they do business. The goal of the new policy is to strengthen the common good through more intensive control of markets. The relevant document is the Opinions on Accelerating the Construction of a Single National Market of China of… Continue reading Politics of the Common Good: What Companies Need to Watch Out For

App Certification in China

There are various certifications in China for protecting personal data in apps. The most important is the App Security Certification of the China Cybersecurity Review Technology and Certification Center (CCRC). It applies to apps of all service types, for example, apps developed and used in the smart home sector. However, there is one important requirement… Continue reading App Certification in China