In a recent development, the Cyberspace Administration of China (CAC) issued the draft Provisions on the Regulation and Promotion of Cross-Border Data Flows on September 28, 2023, a year after China’s data export security management framework was officially established.
It is pertinent to note that this draft was released shortly before China’s week-long National Holiday and was accompanied by a brief window for public feedback set until October 15. The timing of this announcement implies the CAC aims to finalize the draft and roll out the actions shared in it within a quick time frame.
The purpose of these draft provisions is linked to addressing concerns around China’s data export administration burdens, an area that has previously created complications for global corporations and law firms alike. If implemented, this ease in data-export compliance could have significant implications, particularly for legal professionals working with or within China’s territorial confines.
Before becoming law, there are still several steps that these Provisions will have to go through. Needless to say, the decision by the CAC to seek public comment at this stage signals an important preemptive step to ensure that all potential issues are addressed before the provisions are eventually enacted.
We will be closely monitoring the situation and providing updates on any developments in subsequent reports. Legal professionals are advised to familiarize themselves with these draft provisions in the meantime, as it is likely that they will come into effect shortly after the comment period.