March 18, 2019

March 18, 2019

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March 15, 2019

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China Seeks Public Comments on Draft Regulation on Cross-Border Data Transfer

On April 11, 2017, the Cyberspace Administration of China (“CAC”) released a draft of the Measures on Security Assessment of Cross-border Data Transfer of Personal Information and Important Data (“the Draft Measures”) for public comment.  The comment period ends on May 11, 2017.

The issuance of the long-anticipated Draft Measures is another critical step toward implementing China’s Cybersecurity Law (“the Law”), which is set to take effect on June 1, 2017.  Importantly, the Draft Measures, if enacted in its current form, would mandate all “network operators” to self-assess the security of their cross-border data transfers and significantly broaden the scope of entities that potentially need to undergo security assessments for such transfers by the Chinese government.  Companies that fall into the scope of “network operators,” but may not qualify for “operators of Critical Information Infrastructure” (“CII”), could see their cross-border data transfers regulated under the Draft Measures.  

Given the potentially sweeping coverage of the Draft Measures, companies seeking to transfer Chinese citizens’ personal information and “important data” outside of China should consider taking steps to proactively self-assess their cross-border data flows and be prepared for the government’s security assessment, if the Draft Measures are enacted as they are drafted now.  Please let us know if you are interested in an unofficial translation of the Draft Measures, our analysis of them, or filing comments.

© 2019 Covington & Burling LLP

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About this Author

Yan Lou, Regulatory and public policy lawyer, Covington
Of Counsel

Yan Luo advises clients in a broad array of regulatory matters in connection with international trade, cybersecurity and antitrust/competition laws in the U.S., EU and China.

With previous work experience in Washington, DC and Brussels before relocating to Beijing, Ms. Luo has fostered her government and regulatory skills in all three capitals. She is able to strategically advise international companies on Chinese regulatory matters and represent Chinese companies in regulatory reviews in other markets.

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