A majority of European companies in China are calling for clearer definitions of data regulation and transfer. According to a study published by the European Chamber of Commerce in Beijing, the ambiguities in Chinese legislation could cost companies millions of dollars.
The People’s Republic of China has significantly tightened data laws in recent years. However, the legal texts regulating, among other things, the cross-border transfer of data are extremely vague. According to the Chamber of Commerce, this would “pose serious operational and compliance issues” for European companies in China.
Companies often have no idea what exactly data is considered sensitive by authorities. There is also uncertainty about the extent to which the transfer of data from China to the headquarters in Europe could potentially violate the law.
National security in focus
What is special about Chinese data regulations is that they are not only about the protection of privacy, but also focus primarily on the country’s national security.
In recent months, Chinese authorities have increasingly raided Western companies. The hardest hit were accounting and consulting firms, each of which had collected large amounts of data on the Chinese market. Authorities always accused the companies of endangering national security.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
