China’s new cybersecurity law

by Ropes & Gray LLP
Contact
Mimi Yang, a Ropes & Gray government enforcement partner in Hong Kong, provides an overview of China’s new cybersecurity law (CSL), which came into effect in June 2017.

___________

The new cybersecurity law of China has been in the works for a few years. It actually recently went into effect on June 1, 2017, so this year. It really regulates a lot of the cybersecurity issues, for instance data risk, data storage, personal information and See more +

Mimi Yang, a Ropes & Gray government enforcement partner in Hong Kong, provides an overview of China’s new cybersecurity law (CSL), which came into effect in June 2017.

___________

The new cybersecurity law of China has been in the works for a few years. It actually recently went into effect on June 1, 2017, so this year. It really regulates a lot of the cybersecurity issues, for instance data risk, data storage, personal information and important data. All of those are quite loosely defined in the new cybersecurity law however. Most multinationals will fall under “network operators” as defined under the new cybersecurity law. The cybersecurity law also has a provision that relates to “critical information infrastructure operators” (CIIOs) – those are operators that are not well defined in the new cybersecurity law, but may fall under certain industries such as telecommunications, water resources, the public health sector, social welfare and other industries.

One of the implementing regulations for the cybersecurity law will be the measures for security assessment of personal information and important data to be transferred abroad. So these draft review measures really say to network operators and CIIOs exactly what can be transferred abroad, exactly what types of data can be transferred abroad, and in those cases, what you need to do before you can transfer that data abroad. So for instance, for personal information, network operators have to make a security assessment as to the necessity, legality and logistics of transporting that information abroad. Another issue to be considered under the draft measures is consent of the individual whose personal information is to be transferred abroad. Personal information is defined quite broadly under both the cybersecurity law and its implementing regulations. It can be anything that identifies a person – the person's full name, the person's date of birth, their telephone number, their address. So it can be very, very broadly defined.

I think in terms of understanding the law, because a lot of the provisions are very loosely defined, companies should take care to actively monitor the implementing regulations in the new cybersecurity law. They should also make sure to actively monitor what is happening around the new law and what the Cyberspace Administration of China is saying with regards to the implementing measures, with regards to the other regulations and with regards to the law itself. Other things that the companies can be doing is making sure that they are already actively in compliance with the key measures of the cybersecurity law, especially with regards to making sure that they have personnel who are qualified to make data risk assessments. For instance, making sure that you have a chief information security officer; making sure that they have data policies that are visible and that are disclosed; making sure that their IT personnel and information security personnel knows about the new regulations and the new cybersecurity law; making sure that they think about obtaining express and implied consent from their employees with regards to personal information. As of this time, we actually don't know whether HR information falls under the new cybersecurity law, which can be a very big issue for multinational companies who have personnel in China, but are operating overseas.

So the penalties for violating the cybersecurity law can be quite strict in terms of monetary penalties. Someone can be fined up to RMB 1 million, which is the equivalent of about US$150,000. In some rare cases, an individual, the supervising personnel for instance of the information that was transferred abroad, may be subject to imprisonment. However, we haven't really seen enforcement of the new cybersecurity law yet, so all that really is up in the air.

See less -

Embed
Copy

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ropes & Gray LLP | Attorney Advertising

Written by:

Ropes & Gray LLP
Contact
more
less

Ropes & Gray LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.