A First Look at the Provisions on Regulating and Promoting Cross-border Data Flows (Draft for Comment)
On September 28, 2023, the Cyberspace Administration of China (the "CAC") issued theProvisions on Regulating and Promoting Cross-border Data Flows (Draft for Comment)(the "Draft Provisions"). In light of the previous practical issues relating to data export security assessments, standards for PI exports, and contract record-filing, the Draft Provisions would significantly adjust the applicable standards for data export assessment and record-filing and substantially exempt enterprises from the evaluation and record-filing obligations for scenarios where data exports are necessary or where only a small amount of PI is to be transferred. While ensuring the orderly cross-border transfer of data, enterprises' compliance burdens would be substantially reduced. Under the background of downward pressure on the overall economy, the Draft Provisions offer more certainty and possibility for data to be exported, which substantially responds to the Chinese government's initiative of adhering to economic globalization under the new situation and provides the source driving force for enterprise development.