Data Localization, Cybersecurity, and What It All Really Means for China

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Image via Techcrunch

“In China’s view, data originating from China ought to be kept inside China’s borders because it is not safe elsewhere, period.”

Josh Horwitz

Effective June 1st, 2017 are new regulations mandated by Beijing which require increased protocols with respect to data transfers together with an increased degree of data localization.  This will have notable implications for foreign enterprises operating within the Mainland.  

Essentially, within certain parameters, companies deemed “network operators” or “critical information infrastructure operators” (CIIOs) will be required either to store user data within China, or to export that data to China.  The new measure not only extends the frontiers for cybersecurity law in China, but also demonstrates a growing trend regarding the sovereignty and global significance of digital data.  

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