Retalitory Risk for Off-Shoring

The China PIPL includes Article 43, which covers retaliation “Where any country or region adopts discriminatory prohibitions, limitations or other similar measures against the People’s Republic of China in the area of personal information protection”.

This seems to imply if counties or regions such as the EU or USA doesn’t grant China adequacy status or refuses to sign a data-sharing treaty, there could be retaliation, which might mean no off-shoring will be allowed to that country or region.

You should discuss this with your legal team as part of understanding the likelihood of being granted permission to off-shore personal data from China to your home or other countries.

Keep in mind this type of retaliation could also happen later, after you have approval and are off-shoring data. It’s possible for a sudden blanket or soft ban, perhaps in the form of additional audits or approvals, to arise.

Published by Steve Mushero

Global Technologist CEO of ChinaNetCloud CEO of ELKman Based in Silicon Valley & Shanghai

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