New rules strengthen data privacy in China

Subject

Data privacy regulations in China.

Significance

This year has been a turning point for data privacy in China. Internet majors Alibaba and Baidu faced lawsuits and official warnings over data privacy violations. The government has begun enforcing stricter privacy rules and new rules lay the groundwork for a privacy regime that will protect citizens from privacy encroachments and misuse of their data by companies.

Impacts

• The similarities between the Chinese and EU frameworks will facilitate economic exchanges.
• The new rules may create difficulties for US or Australian firms in China, which lack a comprehensive privacy regulatory framework
• Relaxing policies on encryption will level the playing field for foreign encryption companies in China.