Uncertainties remain in China’s overhauled cross-border data transfer regime

On March 22, 2024, the Cyberspace Administration of China (CAC) unveiled the current version of China’s rules governing outbound data transfers. The new “Provisions on Promoting and Regulating Cross-Border Data Flows” (or “2024 Provisions”) took effect immediately and eased restrictions affecting many businesses, while still underscoring the strength of the CAC’s authority over high-risk areas. For companies conducting data transfers falling within new exempted categories, the regulations brought relief after years of daunting uncertainty. Long reporting cycles, extensive preparation of materials, and long wait times for audit results had created seemingly insurmountable obstacles for businesses relying on data flows, leading to deep pessimism about China’s business environment.

The new rules, which eased burdens for some and pointed to possible solutions for others, were the latest chapter in a long story of regulatory uncertainty, and they won’t be the last. — Read More