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China Stresses for Data Exit Security Evaluation of Firms Seeking to Trade User Data
Published on November 2, 2021 AUTHOR - Privacy Research Team
On Friday, October 29th, 2021, the Cyberspace Administration of China (CAC) requested public comments on Data Exit Security Evaluation (Draft Measures).
The Draft Measures stress that data transfer firms must comply with China's Personal Information Protection Law, commonly referred to as PIPL, before sending user-related data outside China. The Draft Measures aim to expedite efforts on thwarting data security risks.
The Draft Measures concern companies with more than 1 million users in China to do an extensive security review before exporting Chinese individuals' user data to foreign entities. The aim is to regulate data exit activities and have standard operating procedures for companies seeking data exit under the PIPL, Data Security Law (DSL), and Cybersecurity Law (CSL).
Major Requirements Under the Draft Measures:
The Draft Measures require companies transferring data outside of China that meet one of the following circumstances must declare the Data Exit Security Assessment of the data to the National Network Information Department through the provincial CAC:
- Personal information and important data collected and generated by operators of critical information infrastructure;
- Providing the personal information of more than 100,000 people or sensitive personal information of more than 10,000 people outside of China;
- Outbound data contains essential data;
- Personal Information Processors who have processed the personal information of one million people provide personal data outside of China; or
- Other situations required by the CAC require Data Exit Security Assessment.
Organizations subject to a Data Exit Security Assessment would first need to conduct a Data Exit Risk Self Assessment. The details of this assessment are mentioned under Article 4 of the Draft Measures.
Organizations would also be required to submit the following materials for the Data Exit Security Assessment:
- Declaration;
- Data Exit Risk Self-Assessment report;
- Contracts or other legally binding documents drawn up by the data processor and the overseas recipient;
- Other materials required for security assessment.
These Draft Measures also require that companies that have already sent abroad, or intend to send overseas, the personal information of more than 100,000 users or "sensitive" personal information belonging to 10,000 users would also be bound by the requirement.
Please note that a successful security review would have a two-year validity period under these Draft Measures, but factors such as "changes in the country's legal environment or region where the overseas receiver is located" could prompt a new review.
According to Zuo Xiaodong, vice president of the China Information Security Research Institute, "the Draft Measures are a concrete implementation of data going abroad among three pillar-like acts in China. These Draft Measures are not only for data security or cybersecurity but also an indispensable step to ensure the safe development of cross-border business."
As Beijing reinforces its control on Chinese companies and the vast troves of data they control, it's imperative for companies operating in China to comply with China's Data Protection Laws and Cross-Border Data Transfers.
Failure to comply with China's broad laws regarding privacy, companies can and have faced grave consequences. China has recently passed PIPL (effective from November 1st, 2021). The law aims to protect the rights, interests and personal information processing activities of users. With PIPL enforced, companies should immediately strategise efforts and construct ways to comply with these Draft Measures requirements. Failure to comply could lead to hefty fines from the Chinese authorities.
You can read the Draft Measures available in Chinese and convert them to English for additional information and a detailed understanding of the cross border data transfers under PIPL, DSL and CSL. The Chinese regulator welcomes public comments to the proposed proceedings until November 28th, 2021.
With global data privacy laws such as the GDPR and CCPA already proving to be an increasing challenge for businesses, companies must stay ahead and refer to relevant resources for helpful information regarding security assessments, privacy laws etc.
Resources
Here's What 'China's GDPR' Means For International Businesses
10 major changes in China's finalized PIPL
What is China's Data Security Law?
Overview of Personal Information Protection Law
Compliance Checklist for China's CSL
The Ultimate Guide to China's Data Protection Laws
Employee Personal Data Protection in China
Compliance Checklist for China's PIPL
Compliance Checklist for China's Data Security Law (DSL)
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- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Bahrain PDPL readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Privacy Policy & Notice Management
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Bahrain PDPL readiness
- Map data flows
- Manage vendor risk
- Breach Response Notification
- Privacy Policy & Notice Management
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access requests
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Continuous monitoring and tracking
- Automate People Data Graph
- Meet cookie compliance
- Monitor and track consent
- Assess Saudi PDPL readiness
- .. and more
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access requests
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Monitor and track consent
- Assess data protection and privacy act readiness
- Map data flows/cross border data transfers
- Meet cookie compliance
- Automate breach response notification
- Manage vendor risk
- .. and more
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access requests
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Monitor and track consent
- Assess Ghana’s DPA 2012 readiness
- Meet cookie compliance
- Automate breach response notification
- Manage vendor risk
- .. and more
- Customize a data subject rights request portal for seamless customer care
- Automate data subject access request handling
- Secure fulfillment of data access requests
- Automate processing of rectification requests
- Automate erasure requests
- Automate objection and restriction of processing requests
- Monitor and track consent
- Assess data protection and privacy act readiness
- Meet cookie compliance
- Automate breach response notification
- Manage vendor risk
- .. and more
- Automate data subject request handling
- Secure fulfillment of data access requests
- Automate the processing of rectification requests
- Automate object and restriction of processing requests
- Automate erasure/destroy/anonymize requests
- Monitor and track consent
- Continuous monitoring and tracking
- Assess PDPA readiness
- Map data flows and generate reports
- Automate data breach response notifications
- Manage vendor risk
- Meet cookie compliance
- Privacy policy and notice management
- .. and more
- Customize a data subject rights request portal for seamless customer care
- Assess Oman’s PDPL Readiness
- Automate consumer data request handling
- Secure fulfillment of data access requests
- Automate the processing of rectification requests
- Automate erasure/destroy/anonymize requests
- Automate object and restriction of processing requests
- Meet cookie compliance
- Monitor and track consent
- Automate data breach response notifications
- Manage vendor risk
- Map data flows (cross border data transfers) and generate RoPA reports
- Privacy policy and notice management
- ... and more
- Assess Kuwait's DPPR Readiness
- Automate consumer data request handling
- Secure fulfillment of data access requests
- Automate the processing of rectification requests
- Automate erasure/destroy/anonymize requests
- Monitor and track consent
- Map data flows (cross border data transfers) and generate RoPA reports
- Automate data breach response notifications
- Manage vendor risk
- Meet cookie compliance
- Privacy policy and notice management
- Data Classification
- Safeguard Against Loss
- ... and more
- Automate Data Subject Request Handling
- Secure Fulfillment of Data Access Requests
- Automate Processing of Rectification Requests
- Automate Erasure Requests
- Automate Objection & Restriction Of Processing Requests
- Continuous Monitoring & Tracking
- Automate People Data Graph
- Cookie Compliance
- Monitor & Track Consent
- Assess Sri Lankan PDPA readiness
- Map Data Flows
- Assess Third Parties Compliance
- ... and more
- Automate Consumer Data Access Request Handling
- Secure Fulfillment of Data Access Requests
- Automate Processing of Rectification Requests
- Automate Erasure Requests
- Automate Objection & Restriction Of Processing Requests
- Continuous Monitoring & Tracking
- Cookie Compliance
- Assess Third Parties
- Monitor & Track Consent
- Map Data Flows
- Manage Vendor Risk
- ... and more
- Automate consumer data access request handling
- Secure fulfillment of data access requests
- Automate the processing of rectification requests
- Automate erasure requests
- Automate object and restriction of processing requests
- Monitor and track consent
- Assess readiness
- Map data flows and generate reports
- Automate data breach response notifications
- Manage vendor risk
- Meet cookie compliance
- Privacy policy and notice management
- ... and more
- Automate Consumer Data Access Request Handling
- Secure Fulfillment of Data Access Requests
- Automate Processing of Rectification Requests
- Automate Erasure Requests
- Automate Object & Restriction of Processing Requests
- Monitor & Track Consent
- Assess Readiness
- Map Data Flows & Generate Reports
- Automate Data Breach Response Notifications
- Manage Vendor Risk
- Meet Cookie Compliance
- Privacy Policy & Notice Management
- ... and more
- Monitor & Track Consent
- Assess Readiness
- Meet Cookie Compliance
- Obtain Consent for Identification Technologies
- Automate Data Breach Response Notifications
- Automate Privacy Notice Creation & Management
- ... and more
- Automate Risk Assessments & Audit Trails
- Protect Nonpublic Information
- Automate Incident Response Plan
- Fulfill Vendor Risk & Third Party Service Provider Management Requirements
- Fulfill Data Governance & Classification Requirement
- Ensure Access Controls & Identity Management
- Automate System Security & Monitoring
- Fulfill Data Retention Requirements
- ... and more
BackSnowflake is a cloud based data warehouse that allows organizations to run large scale data analytics projects to uncover business insights, run or train machine learning models, and modernize their data infrastructure.
Key Features
Microsoft O365 is the ubiquitous productivity suite for every business worker. Users rely on Office products such as OneDrive and SharePoint to collaborate with their co-workers.
Key Features
Organizations want to migrate their on-premises data to cloud data stores to take advantage of scale and flexibility while reducing operational cost of managing on-premises infrastructure. However, due to privacy regulations such as GDPR, CCPA administrators have to ensure that data is migrated in compliance with these laws.
Key Features
Protecting sensitive content is a priority for all organizations, however, due to volume of sensitive content and
Key Features
While data aids in business decision making, global privacy regulations such as GDPR, CPRA require organization to identify personal & sensitive data & use only for its intended purpose and implement adequate protection.
Key Features
The CDMC Framework sets up controls that companies should put in place, and establishes clear guidelines around data accountability, governance, classification, usage, protection and privacy.
CDMC Framework
Securiti enables organizations to meet multiple regulations around the world and helps with compliance requirements through AI-driven PI data discovery, DSR automation, documented accountability, enhanced visibility into data processing activities and AI-driven process automation.
Securiti is a complete PrivacyOps Solution.
View all solutionsThe California Consumer Privacy Act (CCPA) was signed into law on June 28, 2018 and is scheduled to come into effect on January 01, 2020. Often compared to GDPR, CCPA protects consumers from mismanagement of their personal data and gives the consumer control over what data is collected, processed, shared or sold.
Key Features
The California Privacy Rights Act (CPRA) will take effect from January 1, 2023, and will apply to personal information collected on or after January 1, 2022. Enforcement of the CPRA will start six months later (July 1, 2023). The CPRA builds upon the CCPA, strengthening user privacy for California residents.
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The EU General Data Protection Regulation (GDPR) came into effect on May 25, 2018 and changed the global privacy landscape. It has broadened the definition of processing activities and personal data, impacting companies worldwide, and has tightened the rules to obtain consent before processing information.
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The Lei Geral de Proteção de Dados (LGPD) is modeled with similarities to the General European Data Protection Regulation (GDPR) and contains sixty-five articles. It was approved on August 14, 2018 and its validity has undergone several changes, the last relevant fact being MPV 959. LGPD is in effect since September 18, 2020. The sanctions by the ANPD (Brazilian Data Protection Authority) were postponed to August 2021. The LGPD allows people have more rights over their data and expects organizations to comply with their regulations or face heavy penalties or fines.
Key Features
China has complex data protection and data security regime, however, the following are three main laws that primarily cover China’s data protection and data security regulatory framework. These laws are:
Frameworks
UAE have number of laws in place that govern privacy as well as data security in the UAE. Some of those includes:
Frameworks
The government of New Zealand has recently replaced its long-existing Privacy Act of 1993 with a modernized version, the Privacy Act 2020. The New Zealand Privacy Act 2020 (NZPA) will take effect from December 1, 2020.
Key Features
The Personal Data Protection Act, B.E. 2562 (2019) ('PDPA') is Thailand's first consolidated data protection law, which was published in the Thai Government Gazette on 27 May 2019. This law was said to go into effect on 27 May 2020. However, in May 2020, the Thai Cabinet through a Royal Decree has deferred the enforcement of certain data protection provisions of the PDPA until 31 May 2021.
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In order to protect the data of individuals in South Africa, Parliament assented to the Protection of Personal Information Act (POPIA) on 19th November 2013. The commencement date of section 1, Part A of Chapter 5, section 112 and section 113 was 11 April 2014. The commencement date of the remaining sections (excluding section 110 and 114(4)) was 1st July 2020. As per the Regulator’s Operational Readiness Plan the Regulator will be able to take enforcement actions for the violation of POPIA by July 1st 2021.
Key Features
Singapore’s Personal Data Protection Act (PDPA) comprises various provisions governing the collection, disclosure, use, and care of personal data. It recognizes the rights of individuals to have more control over their personal data and the needs of organizations to collect, use, or disclose personal data for legitimate and reasonable purposes.
Key Features
The Canadian data laws aim to give consumers control over their data and promote greater transparency about how organizations use data containing personal identifiers.
Frameworks
The Australian data laws aim to give consumers control over their data and promote greater transparency about how organizations use data containing personal identifiers.
Frameworks
After the invalidation of Privacy Shield, many companies are relying on the SCCs in order to continue transferring data of EU citizens to companies based in countries who are not deemed adequate for data transfer.
After the CJEU judgement, it is clear that these companies have to conduct Risk Assessments with the data recipients in these countries in order to ensure they have enough controls to mitigate any potential data or regulatory risk.
Key Features
On January 31, 2020, the government of Saudi Arabia issued the Executive Regulations to the Saudi E-Commerce Law 2019 (“ECL”) that was in effect since October 2019. The Executive Regulations together with the ECL (“Law”) aim to protect consumers’ personal data by requiring organizations to take appropriate technical and administrative measures.
Key Features
Turkey was one of the first countries to start the trend of legislating data protection. Turkey published “Law on the Protection of Personal Data No. 6698 (LPPD) covering personal data protection on April 07, 2016.” The LPPD is based on the European Union Data Protection Directive 95/46/EC and has several similarities with the GDPR. It aims to give data subjects’ control over their personal data and outlines obligations that organizations and individuals dealing with personal data must comply with. The LPPD has also provided comprehensive guidelines for the transfer of personal data to the third parties.
Key Features
In December 2019, India, following several other countries' footsteps on the privacy laws' developments, introduced the Personal Data Protection Bill (PDPB) to regulate the processing, collection, and storage of personal data. However, in November 2021, the bill’s name was amended to now be called the Data Protection Bill 2021 (DPB).
Key Features
The Irish Data Protection Act, 2018 (Irish DPA) implements the General Data Protection Regulation (GDPR) and transposes the European Union Law Enforcement Directive in Ireland. Since it incorporates most of the provisions from the GDPR and the Law Enforcement Directive with limited additions and deletions as per the national law, it is considered to be the principal data protection legislation in Ireland.
Key Features
The Personal Data (Privacy) Ordinance (Cap. 486) as amended in 2012 (the “PDPO) is the primary legislation in Hong Kong which was enacted to protect the privacy of individuals’ personal data, and regulate the collection, holding, processing, disclosure, or use of personal data by the organizations.. The Data Protection Principles ( the “DPPs or DPP ''), which are contained in Schedule 1 to the PDPO, outline how entities should collect, handle, disclose, and use personal data.
Key Features
In 2012, the Philippines passed the comprehensive privacy law, Data Privacy Act 2012 Republic Act. No, 10173 (the "DPA"). The DPA recognizes the rights of individuals to have more control over their personal data while ensuring a free flow of information to promote innovation and growth.
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South Korea has a general law and several special laws that cover data protection and individuals' privacy. South Korea's data protection regime is considered one of the strictest data protection regimes owing to its notification requirements, opt-in consent, extensive data subject rights, mandatory data breach notifications, and heavy sanctions in case of non-compliance.
Key Features
The Act on the Protection of Personal Information (the "APPI'') regulates personal related information and applies to any Personal Information Controller (the “PIC''), that is a person or entity providing personal related information for use in business in Japan. The APPI also applies to the foreign PICs which handle personal information of data subjects (“principals”) in Japan for the purpose of supplying goods or services to those persons.
Key Features
Qatar is the first gulf country that has passed a national data privacy law and has paved the way for all other gulf countries to follow suit. In 2016, Qatar enacted Law no. 13 Concerning Personal Data Protection (the “DPL”). Qatar became the first Gulf Cooperation Council (GCC) member state to issue an “European Style” applicable data protection law. The DPL establishes a certain degree of personal data protection, provides data subject rights, and prescribes the guidelines for organizations for the processing of personal data within Qatar.
Key Features
Bahrain has become a part of the countries that have enacted a data privacy regulation to protect the rights of their residents. On 12 July 2018, Bahrain drafted its law on data protection regulation, Law No. 30. This then went on to go into effect on the 1st of August 2019 as the Bahrain Personal Data Protection Law (PDPL) and supersedes all other laws. The PDPL recognizes the rights of individuals to have more control over their personal data and the needs of organizations to collect, use, or disclose personal data for legitimate purposes.
Key Features
After the Success of the California Consumer Privacy Act (CCPA) in California, Virginia is now following the same path. The Virginia Consumer Data Protection Act (VCDPA) has been passed and will go into effect on 1st of January 2023. This law is closely designed after the newer California Privacy Rights Act (CPRA) but with a few significant and important differences.
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After the VCDPA in Virginia, Colorado has closely followed suit and has passed their own comprehensive data privacy law to protect the personal data of the residents of Colorado.The Colorado Privacy Act (CPA) was signed into law on the 8th of July, 2021 and has been modelled closely after the VCDPA.
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Saudi Arabia has drafted a data privacy regulation to protect the personal data of individuals in Saudi Arabia. This law was approved by the Council of Ministers in Saudi Arabia and is named the Personal Data Protection Law (the “PDPL”).
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Uganda’s Data Protection and Privacy Act 2019 seeks to protect Uganda’s citizens and their personal data by outlining and implementing rules for processing personal data and sensitive personal data by entities within or outside the country.
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Ghana Data Protection Act 2012 establishes a comprehensive set of provisions governing the collection, processing, use, and protection of personal data by the data controller or data processor.
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Kenya’s Data Protection Act, 2019 (DPA) is based on the framework of the EU’s General Data Protection Regulation (GDPR), making it the third region in East Africa to have enacted and enforced data protection regulations.
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Malaysia’s Personal Data Protection Act (PDPA) was passed by the Parliament of Malaysia on 2 June 2010. The PDPA sets out a complete cross-sectoral framework to protect the personal data of individuals with respect to commercial transactions.
Key Features
Although there is no comprehensive data protection law in Indonesia, however, there are several regulations that regulate the Indonesia's draft Personal Data Protection Bill (PDPB) & Personal Data Protection Regulations (PDP Regulations)
Frameworks
Oman’s Personal Data Protection Law (Oman’s PDPL) has been published in the country’s official gazette, and it will come into force by February 9, 2023, one year after its issuance which was February 9, 2022. The law applies to any natural person’s personal data including but not limited to their name, location data, identification number, and health-related information.
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Kuwait’s Data Privacy Protection Regulations (DPPR) applies to all public and private Telecommunication Services Providers and related industry sectors who collect, process, and store personal data and user-related content in whole or in part of a data storage system, whether processed inside or outside the State of Kuwait.
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The Personal Data Protection Act (PDPA) protects Sri Lankan residents’ data while regulating how organizations collect, process, store, and maintain this data. The PDPA also grants users a wide range of data subject rights, meant to give them more control over their data.
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Issued on 27 July 2006, the Russian Federal Law on Personal Data (No. 152-FZ) remains one of the oldest data protection laws in effect today. Moreover, it is one of the few laws enacted before the EU's landmark General Data Protection Regulation (GDPR).
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Germany’s Bundesdatenschutzgesetz (BDSG) in German, or the Federal Data Protection Act in English, was enacted in May 2018 to implement the GDPR in Germany.
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The Data Protection Act (DPA) of 2018 was passed in April 2016 and came into effect on May 25, 2018. This was the same day the General Data Protection Regulation (GDPR) came into effect.
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Directive 2002/58/EC on Privacy and Electronic Communications, known more prominently as the ePrivacy Directive, is a key set of instructions released to ensure the privacy and confidentiality of all electronic communications within the European Union (EU).
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The New York State Department of Financial Service Cybersecurity Regulations or 23 NYCRR 500 is a set of 23 cybersecurity requirements mandatory for all financial institutions registered in New York working under its Banking Law, Insurance Law, or Financial Services Law.
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