The Cyberspace Administration of China has drafted a set of exemptions to its requirement for approval to send personal data overseas, which applied to cross-border purchases, money transfers and air and hotel reservations. The internet regulator will still require a security assessment for companies collecting the data of more than 1 million people and using it overseas, but it’s narrowing the scope for other required filings.
The draft exemptions, published Thursday, would be especially helpful to companies that store personal data for fewer than a million users, said Atticus Zhao, a Beijing-based data compliance specialist at King & Wood Mallesons. “For many companies, especially cross-border companies, this is a huge relaxation, and substantially reduces the burden.”
In recent months, regulators have sought to address multinationals’ fears that the strict rules could turn China into a data island. They have held closed-door discussions to explain the policies to foreign businesses and floated a “green channel” plan to ease transfers.
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