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Personal Information Protection Law in China: Technical Considerations for Companies-New Article from Dezan Shira & Associates

posted 2 years ago

On August 20, China published the full finalized text of the Personal Information Protection Law (PIPL), the first such law ever to be passed in the country. Effective from November 1, 2021, this new law, along with the Data Security Law and Cybersecurity Law, China has built its own extensive legal realm of security and personal information protection.

We anticipate that these laws will have a profound effect upon business operations in China with regards to security and privacy management, much as the European Union’s General Data Protection Regulations (GDPR) have in the rest of the world. It will also bring more challenges to foreign companies conducting business in China.

In this article, we provide a technical perspective of the law’s core concepts and important stipulations and provide some suggestions for building compliant IT systems for foreign companies to consider.

The PIPL greatly limits many of the data misuses that have plagued Chinese consumers for years and goes to great lengths to protect user’s rights to privacy and control of their personal information.

As we have seen from recent crackdowns on mobile applications and online service providers, the PIPL is likely to be strictly implemented.

Compliance is therefore critical to remain on the right side of the law. Given the public backlash against data misuse in China, having fair and transparent data practices are also essential to maintaining a healthy relationship with your users and customers.

Building compliance into IT infrastructure and systems is key to achieving this goal. We hope that by listing some of the common issues companies may come up against during operations can help raise awareness of the requirements, and that companies will take prompt action to protect the personal information of their users.

In the coming months, we will continue to publish new articles with suggestions on processes and best practices for complying with the PIPL and other data security laws.

If you are interested in this topic, please stay tuned to us on China Briefing.

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