3 Steps to Data Protection in China

Published on: July 24, 2023

For businesses operating in China, safeguarding sensitive corporate data is a top priority, just as it is anywhere else in the world. How can companies ensure data protection in China and stay compliant with local laws?

The Cybersecurity Law of the People’s Republic of China, implemented in 2017, caught the attention of some North American companies due to Article 37. This article stipulates that all data, including personal information, must be stored within China’s borders. Failure to comply with this regulation could lead to fines and even the revocation of business licenses.

To ensure your company’s data remains secure in the Chinese market while complying with local laws, follow these steps.

3 essential steps to data protection in China:

1. Store data locally with a reliable service provider

To adhere to China’s data localization policy, ensure that all sensitive information, including personal data, is stored on servers physically located within the country. This step is crucial to avoid any legal issues and maintain compliance with the Cybersecurity Law.

This means partnering with local data centres or cloud hosting services that can offer secure storage facilities within the country’s borders. By adhering to this requirement, you avoid any legal complications and demonstrate your commitment to data protection in China.

2. Implement robust data security measures

Keep your data safe from unauthorized access and cyber threats by implementing strong cybersecurity measures. In China, just like in other regions worldwide, you can encrypt your data. However, it’s essential to know that in China, encryption is regulated by the Office of State Commercial Cryptography Administration (OSCCA).

To comply with Chinese regulations, use only OSCCA-approved products for encryption. Before applying encryption, ensure that you report your encryption plans and obtain proper clearance.

Strengthen your data protection strategy further by utilizing multi-factor authentication and conducting regular security audits.

3. Stay updated with regulatory changes

It’s essential to stay up-to-date with the latest changes in data protection laws in China.

Partner with legal experts familiar with Chinese regulations to ensure your company’s operations and data management practices comply with the law.

Key Takeaways:

By following these 3 steps, global companies can navigate the challenges of data protection in China while operating securely and adhering to the local legal requirements.

This proactive approach will help maintain trust with customers and business partners, ensuring a successful and compliant operation in the Chinese market.

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