China drafts tough rules to stop data from leaving its borders as Beijing tightens grip on information

  • The new rules could also potentially affect data flows between the Chinese mainland and Hong Kong, as they cover all data leaving China’s ‘borders’
  • An international consumer goods company will have to go through the government if it wants to share its Chinese consumer database with head office

Shoppers and pedestrians wait at a traffic signal at Nanjing Road in Shanghai. For data gathered from the personal information of more than 1 million Chinese, a government review is mandatory before moving it across the border. Photo: Bloomberg

A new set of draft rules released on Friday by the Cyberspace Administration of China (CAC), the country’s internet watchdog, have proposed additional requirements for businesses wanting to transfer Chinese data abroad, as Beijing seeks to tighten its grip on domestic data.

The draft regulations, which are likely to become official after the public feedback period ends on November 28, are set to have a far-reaching impact on the overseas listings of Chinese companies, and even day-to-day operations of multinationals operating in the country.

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