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
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.
The process will apply to a broad range of companies, including those that handle the personal information of more than 1 million Chinese citizens, and those that seek to transfer “important data” – a term that has not been properly defined.
An entity will also need to undergo an assessment by the CAC if it has been handling the “sensitive” personal data of more than 10,000 people since the beginning of the previous year, or if it has handled the personal information of more than 100,000 Chinese citizens.
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While the new rules do not specifically mention Hong Kong or Macau, in practice, the two special administrative regions – governed under the “one country, two systems” principle – are often treated as areas outside the Chinese border, meaning that data transfer from the mainland to Hong Kong could potentially come under scrutiny.