China is to strengthen its cyber security regulations.
China's Ministry of Industry and Information Technology has issued a draft three year action plan to develop the country's cyber security industry, the market value of all the firms in the sector will be 250 billion yuan ($38.6 billion) by 2023.
China’s Guangdong province said it plans to build a common data platform in the Greater Bay area, including Hong Kong and Macau, and a data trading market in Shenzhen. Guangdong will consider establishing a data ‘customs hub’ to review and supervise cross-border data, according to a statement.
The government will “promote the distribution and sharing of data between Guangdong, Hong Kong and Macau, and the use of data to benefit industrial development, social governance and services to people”.
Last week, China’s Office of the Central Cyberspace Affairs Commission proposed draft rules calling for all data-rich tech companies with over one million users to conduct security reviews before listing overseas.
Chinese regulators are making efforts to draft regulations to better govern data storage, data transfer, and personal data privacy. In June China officially issued the Data Security Law and it will be effective on 1 September.
Leo Xin of Pinsent Masons, the law firm behind Out-Law, said: “With the promulgation of the Data Security Law which will come into force on 1 September, China has further enhanced its regulation over the data-related activities. It is expected to see that China will issue more detailed implementation rules and/or standards around the data security and cyber security, such as cross-border data transfer risk assessment, data security classification. Companies need to set up a data compliance plan to catch up the legislation development.”
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