Many foreign companies had already given up – now there's more red tape
Starting in June, companies operating in China must undergo a regulatory intervention when sending data abroad, thanks to the Cyberspace Administration of China .on Friday businesses that handle the personal information of up to 1 million people, or want to send user information of up to 100,000 individuals abroad, will need to sign a standard contract before doing so and file it with a local CAC office within 10 working days of it taking effect.
Within the contract, the firms must conduct assessments on the risk of data being tampered with or misused and file a declaration of the assessment with local government administration. Other requirements of the contract include divulging scale, scope, type and sensitivity of the information and how it's managed overseas.
To use these contracts, those sending the information must also be non-critical information infrastructure operators and the company must have sent personal data overseas of less than 10,000 people since January 1 of the previous year.But companies that do not qualify will have to rely on a different process – either engaging a designated agent for certification or passing the CAC's stricter security assessment.
Just in case a company thought it was being clever, the CAC warned businesses not to split up data into batches to qualify for the standard contract instead of the certification or security assessment.
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