China’s easing of data export rules will be complex

Significance

Although an easing of strict data export rules has provided temporary relief for foreign entities, classification standards and local pilot projects indicate which “important data” will face regulatory scrutiny.

Impacts

• Government institutions will transform guidance on data classification into sector-specific export catalogues over the coming months.
• Experimentation in free trade zones may foster interregional competition but also fuel regulatory confusion.
• China could face reciprocal restrictions from other countries after the United States imposed data export sanctions in February.
• Foreign businesses will need to factor an increased data export compliance burden into their long-term strategic planning.