China is putting pressure on the implementation of its compliance rules regarding cyber security and data protection. With immediate effect, companies that violate the legal requirements for cyber security and data protection will be recorded and disclosed in the Corporate Social Credit System (CSCS). This applies, for example, to the mandatory certification of network-connected IT… Continue reading Cyber and data compliance now included in the social credit system
Tag: IT System
Cybersecurity Law: Fines Significantly Increased
The Cybersecurity Law (CSL), China’s first fundamental law to comprehensively regulate cybersecurity issues, is about to undergo its first revision. A key feature of the proposed amendments is a significant increase in penalties for network operators and critical infrastructure operators that fail to comply with relevant cybersecurity protection obligations. For example, the fine range for… Continue reading Cybersecurity Law: Fines Significantly Increased
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
Important Data: More Duties for Processing
China is fleshing out its data protection rules. The Network Data Security Management Regulation (Draft for Comments), published in November 2021, provides more detailed guidance regarding the obligations of processors of important data. Data is divided into general data, important data, and national core data. Important data refers to data that may jeopardize national security… Continue reading Important Data: More Duties for Processing
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