Hong Kong, mainland China to make sharing personal data easier in Greater Bay Area, first phase to cover banking, healthcare sectors
- Authorities to introduce standard contract this month to ensure safe and orderly flow of personal data, Innovation, Technology and Industry Bureau says
- Compliance requirements among nine mainland cities within the area and Hong Kong will be streamlined, according to bureau
Hong Kong and mainland China will launch a pilot scheme this month to enable easier cross-border data transfers in the Greater Bay Area in an unprecedented move aimed at breaking down information barriers, with the first phase set to involve the banking, credit referencing and healthcare sectors.
A standard contract would be introduced to ensure the safe and orderly flow of personal data within the bay area for contractual purposes, the Innovation, Technology and Industry Bureau said on Wednesday.
“With the implementation of the [bay area] standard contract, the compliance costs of cross-boundary personal data flow for enterprises will be greatly reduced, thereby facilitating the provision of relevant cross-boundary services in the [bay area] and bringing convenience to the public and businesses,” a bureau spokesman said.
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“The [bay area] standard contract also promotes the development of the [area’s] digital economy and helps Hong Kong better integrate into the national development.”
The bay area is Beijing’s ambitious plan to integrate Hong Kong, Macau and nine southern mainland Chinese cities into an economic powerhouse.
The scheme, which will be implemented in phases, will allow individuals and organisations in the bay area to voluntarily enter a standard contract, which outlines the responsibilities and obligations of both parties in protecting personal information, according to the bureau.
Under the first phase of the programme, set to launch this month, Hong Kong and mainland authorities will invite the banking, credit referencing and healthcare sectors to take part in the scheme, which is led by the Office of the Government Chief Information Officer (OGCIO) and the Cyberspace Administration of Guangdong Province.
Compliance requirements for the flow of personal data among nine mainland cities within the area and Hong Kong would be streamlined, the bureau said.
The contract would also lift restrictions imposed by mainland authorities on the amount of personal data that could be transferred and simplify the information required for assessing the protection of personal data, it added.
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The bureau said it would review the “early and pilot implementation” arrangement in due course, with a view to further extend the measure to other sectors.
The new measure was voluntary and privacy would be protected under city laws, it added.
“The GBA standard contract is an administrative measure. It does not affect the supervisory and regulatory roles of the Office of the Privacy Commissioner for Personal Data in ensuring compliance with the Personal Data (Privacy) Ordinance,” the bureau spokesman said.
According to the contract’s implementation guidelines, staff are required to maintain the confidentiality of personal data, commercial secrets and business information. They are also prohibited from sharing this information with others, or using it unlawfully.
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In case of a breach, complaints can be filed with the bureau, the city’s privacy commissioner, as well as the Cyberspace Administration of China and the Cyberspace Administration of Guangdong Province. Upon receiving a complaint, relevant departments can request a rectification if they detect a high security risk.
Finance sector lawmaker Ronick Chan Chun-ying said the new scheme would make it easier for individuals and organisations to transfer their credit history or assessments when applying for loans or credit cards on the other side of the border.
“It will greatly facilitate cross-border commercial and financial activities by removing the complex hurdles of getting their credit history or assessments back home,” he said. “The compliance costs will be reduced as financial institutions can save a lot of the cost for hiring credit agencies to do assessments.”
Election Committee lawmaker Andrew Lam Siu-lo agreed with Chan, saying the move would help businesses and individuals looking to secure cross-border credit or loans.
As for healthcare services, Lam said it would enable patients to share their medical history without hassle on the other side of the border when they sought medical services, providing greater convenience and speeding up diagnosis.
“The scheme may also facilitate the transfer of personal data for the purposes of research and development, which will be beneficial to the city’s innovation and technology development,” he said.
