China, The World’s Largest Online Population, Introduces Its First Comprehensive Personal Information Protection Law

Knobbe Martens
Contact

Knobbe Martens

The People’s Republic of China (“China”) has introduced its first comprehensive data privacy law, which will explicitly protect the personal information of its residents.  On October 21, 2020, China’s legislative body submitted a draft bill for the Personal Information Protection Law (“PIPL”) that would prohibit businesses and enterprises from misusing the personal information of Chinese residents.  Like the European Union’s General Data Protection Regulation (“GDPR”), the PIPL defines personal information broadly to include various types of electronic or otherwise recorded information relating to an identified or identifiable natural person. 

Non-Chinese companies should monitor the progress of this bill because, like the GDPR, it has broad extra-territorial reach and could apply to foreign companies that provide products or services to people in China or analyze or assess the behavior of Chinese residents.  If passed in its current form, those that misuse personal information will be put onto a “blacklist” by the Cyberspace Administration of China, which would prohibit online activity within China.

The draft bill also includes heavy fines for data breaches.  Those who violate the proposed law could face fines up to 50 million yuan ($7.4 million) or 5% of its past year’s revenue.  If the law passes, this would make the financial penalties one of the strictest in the world; surpassing even the GDPR penalties, which can be up to 4% of a business’s annual revenue.    

Editor: Arsen Kourinian

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.

© Knobbe Martens | Attorney Advertising

Written by:

Knobbe Martens
Contact
more
less

Knobbe Martens on:

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:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.