China
ARTICLE 19
China requires data localisation for data or entities operating in certain areas or specialised
industries.42 This represents a fairly expansive data localisation regime, although it is not
technically applicable to all internet companies and services as some sources suggest.43
The Cybersecurity Law imposes certain data localisation requirements on CIIOs, which must
also undergo a security assessment before transferring data outside of China.44 Real-name
registration requirements are imposed on mobile phone, domain name registration, and
other specified network operators, which must then require users to provide information on
their real identity.45 More generally, network operators must provide technical support and
assistance to security authorities.46 Article 58 also enables authorities to impose temporary
measures to limit network communications in a designated area in order to protect national
security or to respond to major security incidents.
Along with the Cybersecurity Law, 2 other laws form the core of the data management
obligations imposed on companies operating in China. The Data Security Law 2021 47
introduces general data management requirements, such as restrictions on the cross-border
transfer of data, and establishes categories of information which are subject to special
management rules (such as if the data impacts national security). The Personal Information
Protection Law 2021 outlines personal data protection obligations for companies, but with
additional elements such as data localisation for CIIOs which handle more than a certain
quantity of personal data and mandatory state security assessments prior to cross-border
transfers of personal data.48
Tech companies are also subject to legal obligations under a range of national security laws,
including:
•
National Security Law 2015: This important framework law requires enterprises and other
organisations to preserve national security, defined broadly to include public welfare and
other ‘major national interests’, and to cooperate with authorities to implement security
measures.49 It also tasks the state with establishing a national network and information
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A. Douglas and H. Feldshuh, How American Companies Are Approaching China’s Data, Privacy, and
Cybersecurity Regimes, The US–China Business Council, April 2022
43 Freedom House, Freedom on the Net 2023: China; A. Robertson, Facebook Takes a Shot at Apple in China,
Says it Won’t Store Data in Certain Countries, The Verge, 6 March 2019.
44 Creemers, Triolo, and Webster, Translation: Cybersecurity Law, Article 37.
45 Creemers, Triolo, and Webster, Translation: Cybersecurity Law, Article 24.
46 Creemers, Triolo, and Webster, Translation: Cybersecurity Law, Articles 28 and 69.
47 Creemers, Triolo, and Webster, Translation: Cybersecurity Law.
48 Creemers and G. Webster, Translation: Personal Information Protection Law of the People’s Republic of
China – Effective Nov. 1, 2021, unofficial English translation, DigiChina, 20 August 2021, Article 40.
49 China Law Translate, National Security Law of the People’s Republic of China, unofficial English translation,
1 July 2015, Articles 2, 11, and 79.
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