China Tightens Data Transfer Regulations

Under tighter new regulations, foreign companies operating in China will need to apply for permission to transfer data out of the country. These rules will affect network operators, mainly technology companies and other companies that do business through computer networks. The new regulations will apply to firms that are transferring more than one TB of data, or data with the information of more than 500,000 people. These businesses will need to seek permission from both customers and the Chinese government before transferring the data out of the country. The government will block data if they feel as though it could negatively impact the country’s political system, economy or security.

Shanghai Business Review is the leading English language website and print magazine for business leaders conducting business in China.