China tightens control over company data with transfer rules

Companies successful China would request authorities support to transportation important information overseas nether projected rules announced Friday that would tighten Beijing's power implicit accusation and mightiness disrupt operations for planetary corporations.

The measurement is needed to support the Chinese nationalist and "safeguard national security," the Cyberspace Administration of China said.

President Xi Jinping's authorities sees accusation astir China's 1.4 cardinal radical arsenic a imaginable information hazard successful backstage hands. It has issued a flurry of rules tightening power implicit however companies stitchery and grip information.

A crackdown connected data security launched successful precocious 2020 fueled anxiousness among investors, who person knocked much than $1.3 trillion disconnected the full marketplace worth of e-commerce level Alibaba, games and societal media relation Tencent and different tech giants.

Companies that privation to transportation important information overseas would person to study connected however overmuch and what benignant of accusation is progressive and security measures, according to the CAC. Regulators would determine wrong a week whether to judge that oregon behaviour their ain review, which could past up to 60 days.

The rules would use to transfers that impact "sensitive idiosyncratic information" of astatine slightest 10,000 radical oregon immoderate institution that handles accusation connected much than 1 cardinal people. They springiness nary details of what is important oregon sensitive.

Rules imposed earlier prohibit companies from storing accusation astir Chinese citizens abroad.

That prompted complaints that planetary companies are enactment astatine a disadvantage due to the fact that they can't harvester accusation from China with different countries, portion Chinese competitors tin cod each their information astatine their headquarters.

A abstracted instrumentality that takes effect Monday establishes information standards, prohibits companies from disclosing accusation without lawsuit support and tells them to bounds however overmuch they collect. Unlike information extortion laws successful Western countries, the Chinese rules accidental thing astir limiting authorities oregon ruling Communist Party entree to idiosyncratic information.

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