China’s new data export rules cast doubt over Hong Kong’s role as gateway to the mainland

  • From September onwards, China will require some companies to pass a security assessment before transferring data outside the border
  • While the new rules do not mention Hong Kong or Macau, in practice, the two cities are often treated as areas outside the Chinese border

Vehicles travel along a road in Hong Kong. Experts say new data regulations in China, which will come into effect next month, could affect the city’s role as a business gateway to the mainland. Photo: Bloomberg

China’s new rules governing how data can be sent outside the country could erode Hong Kong’s role as a gateway for international businesses to enter the mainland market, experts said.

Starting from September, China will require companies that meet certain criteria to pass a security assessment by the Cyberspace Administration of China (CAC) before transferring data outside the border, according to new regulations finalised earlier this month.
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