In the past year China has passed a number of laws concerning national and cyber security, and privacy. The Guidelines issued by the China Banking Regulatory Commission (the “Bank Rules”) on 26 December 2014 require IT products owned or used by Chinese banks to meet a “secure and controllable” standard by, inter alia, registering the software source code and encryption technology with the CRBC. The Bank Rules would effectively restrict Chinese banks’ use of foreign IT products, thus creating implementation challenges for the banks themselves while generating wide concerns in the international community. In March 2015, China agreed to delay the implementation of the Bank Rules. However, the National People’s Congress (NPC) passed the National Security Law (NSL) not long after on 1 July 2015. A week later, the NPC released the first draft of China’s Cyber-Security Law (Draft CSL) for public comment. Both the NSL and the Draft CSL contain broad provisions which leave a lot open to interpretation. The Draft CSL further requires that Critical Information Infrastructures store Chinese citizen’s personal data within mainland China and that they obtain a “security assessment” prior to any cross-border transfer of such data. On 27 December 2015, the NPC’s Standing Committee passed China’s new Counter-Terrorism Law (CTL), which came into effect on 1 January 2016. Compared to the Draft CTL that was first released on 3 November 2014 for public reading, the final CTL appears less draconian as two, much objected, key requirements have been dropped.
What is the driver for these laws? What challenges do these new laws pose to MNCs which have operations in China? What strategic measures can be adopted to address these challenges?
The seminar will cover:
- The key provisions of these new laws and the trend
- Compliance and operational challenges posed by the new laws
- Strategic steps to address these challenges
3F, The Portman Ritz-Carlton
1376 Nanjing West Road, Jing'an District
For enquiries, please contact Ting Chin:
| T: +852 2843 2258