{"id":50764,"date":"2023-02-27T13:30:05","date_gmt":"2023-02-27T13:30:05","guid":{"rendered":"https:\/\/www.threatshub.org\/blog\/china-makes-it-even-harder-for-data-to-leave-its-shores\/"},"modified":"2023-02-27T13:30:05","modified_gmt":"2023-02-27T13:30:05","slug":"china-makes-it-even-harder-for-data-to-leave-its-shores","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/china-makes-it-even-harder-for-data-to-leave-its-shores\/","title":{"rendered":"China makes it even harder for data to leave its shores"},"content":{"rendered":"<p>Starting in June, companies operating in China must undergo a regulatory intervention when sending data abroad, thanks to the Cyberspace Administration of China (CAC).<\/p>\n<p>The CAC <a target=\"_blank\" href=\"http:\/\/www.cac.gov.cn\/2023-02\/24\/c_1678884830036813.htm\" rel=\"noopener\">announced<\/a> on Friday businesses that handle the personal information of up to 1 million people, or want to send user information of up to 100,000 individuals abroad, will need to sign a standard contract before doing so and file it with a local CAC office within 10 working days of it taking effect.<\/p>\n<p>Within the contract, the firms must conduct assessments on the risk of data being tampered with or misused and file a declaration of the assessment with local government administration. Other requirements of the contract include divulging scale, scope, type and sensitivity of the information and how it&#8217;s managed overseas.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"condor\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>To use these contracts, those sending the information must also be non-critical information infrastructure operators and the company must have sent personal data overseas of less than 10,000 people since January 1 of the previous year.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xmd=\",fluid,mpu,leaderboard,\" data-lg=\",fluid,mpu,leaderboard,\" data-xlg=\",fluid,billboard,superleaderboard,mpu,leaderboard,\" data-xxlg=\",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<div class=\"adun_eagle_desktop_story_wrapper\">\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"mid\" data-raptor=\"eagle\" data-xxlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<\/p><\/div>\n<p>The standard contract will apply to most cross-border transactions that occur from China.<\/p>\n<p>But companies that do not qualify will have to rely on a different process \u2013 either engaging a designated agent for certification or passing the CAC&#8217;s stricter security assessment. Certification is for related entities while security assessment will be taken up by banks, mobile operators or those that process data of more than 1 million Chinese individuals.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>Just in case a company thought it was being clever, the CAC warned businesses not to split up data into batches to qualify for the standard contract instead of the certification or security assessment.<\/p>\n<p>The CAC said that if it found a greater data security risk, it could &#8220;conduct interviews with the personal information handlers in accordance with law.&#8221; The regulator also reserved the right to change the rules. Businesses that don&#8217;t comply must fix their processes within six months or face penalties.<\/p>\n<p>The policies are part of China&#8217;s Personal Information Protection Law (PIPL) which first came into effect in November 2021.<\/p>\n<p>Critics have said the new standard contract requirements are costly, but according to the CAC, they &#8220;protect the rights and interests of personal information and regulate activities of exporting personal information abroad.&#8221;<\/p>\n<p>Many foreign entities have already found Chinese regulations tough enough to throw in the towel and leave.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" id=\"story_eagle_xsm_sm_md_xmd_lg_xlg\" data-pos=\"mid\" data-raptor=\"eagle\" data-xsm=\",mpu,dmpu,\" data-sm=\",mpu,dmpu,\" data-md=\",mpu,dmpu,\" data-xmd=\",mpu,dmpu,\" data-lg=\",mpu,dmpu,\" data-xlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Y-0O1TsA1D8WC37tYx8hywAAAE8&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>Yahoo <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2021\/11\/02\/yahoo_close_china_ops\/\" rel=\"noopener\">ditched<\/a> Chinese operations as the PIPL came into effect, citing &#8220;the increasingly challenging business and legal environment in China.&#8221;<\/p>\n<p>LinkedIn left a month prior, <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2021\/10\/14\/linkedin_china_microsoft\/\" rel=\"noopener\">citing similar reasons<\/a>. \u00ae<\/p>\n<p> READ MORE <a href=\"https:\/\/go.theregister.com\/feed\/www.theregister.com\/2023\/02\/27\/china_data_regulatory_intervention\/\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many foreign companies had already given up \u2013 now there&#8217;s more red tape Starting in June, companies operating in China must undergo a regulatory intervention when sending data abroad, thanks to the Cyberspace Administration of China (CAC).\u2026 READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[63],"tags":[],"class_list":["post-50764","post","type-post","status-publish","format-standard","hentry","category-the-register"],"yoast_head":"<!-- This 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