Focus topics

IT regulation takes hold

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  • The Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law are now in full effect and form the pillars of a comprehensive regulatory system for China’s cyber and data security.
  • For the Chinese leadership, this regulatory framework represents the basis for shaping China’s future digital economy, which makes it a top priority for the Chinese government.
  • European companies are now facing a whole range of new requirements, some of which are far-reaching. In particular, strict data localization rules are emerging for anything with ties to critical areas such as power supply. Cross-border data flows are under increasingly strict scrutiny.
  • Another wave of industry-specific and local regulations is now imminent. However, China’s government also has an interest in balancing strict data controls against the continued growth of digital business models. Accordingly, special rules are currently emerging in China’s free trade zones to keep certain channels open for freer data transfer.

Sinolytics is a European consulting and analysis company that focuses entirely on China. It advises European companies on strategic orientation and specific business activities in China.


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