Data Protection in China

Security in China

According to the CSL, DSL and PIPL, organizations must keep personal information confidential and establish a data security management system. This includes taking appropriate technical and organizational measures against unauthorized or unlawful processing and against accidental loss, destruction of, or damage to, personal information. The measures taken must ensure a level of security appropriate to the harm that may result from such unauthorized or unlawful processing, accidental loss, destruction or damage, and appropriate to the nature of the data. Security measures must be deployed, as prescribed by the CSL and DSL and their underlying measures, guidelines and technical standards (including the TC260 guidelines). The PIPL includes a specific obligation on data controllers to adopt corresponding encryption or deidentification technologies, and to adopt access controls and training.

Systems should also be established to handle complaints or reports about personal information security, publish the means for individuals to make such complaints or reports, and promptly handle any such complaints or reports received. Organizations must conduct mandatory data / cyber security training.

Additional security safeguards must be applied to processing of sensitive personal information and organizations deemed CIIOs (see above).

The CSL implemented a multi-level protection scheme for cybersecurity protection of information systems by network operators. Information systems are classified into 5 tiers and the security standard goes higher from tier 1 to tier 5. Organizations should conduct a self-evaluation and determine the tier(s) to which its information systems belong, based on relevant laws, regulations and guidelines. Filing to the Public Security Bureau is required and, in certain circumstances, assessment by accredited third party may also be required, depending on the determined tier level of a respective information system. Further national standards and guidelines have been published to provide further details and requirements on the process and technical aspect of the tiered system.

The DSL proposes introducing a similar tiered-security scheme for classification of data in due course.

The National Standard of Data Security Technology — Rules for Data Classification and Grading, effective from March 21, 2024, provides the principles and methods for data classification and grading. It classifies data into three grades: general data, important data, and core data. Additionally, industrial regulators in each sector are working on issuing the data classification and grading scheme in the relevant sectors. In particular:

  • the Ministry of Industry and Information Technology recently issued the Measures for Data Security Management in the Industrial and Information Technology Sector (for Trial Implementation) (MIIT Measures) which came into force on January 1, 2023;
  • the Ministry of Natural Resources issued the Administrative Measures for Data Security in the Field of Natural Resources which came into effect on March 22, 2024;
  • the Ministry of Finance and the Cyberspace Administration of China issued the Interim Measures for the Administration of Data Security for Accounting Firms which came into effect on October 1, 2024;
  • the National Financial Regulatory Administration issued the Administrative Measures for Data Security of Banking and Insurance Institutions which came into effect on December 27, 2024.

If a data controller appoints a data processor to process personal information on its behalf, the data controller should ensure sufficient measures are adopted by the data processor to protect the personal information: for example, to conduct due diligence and regular audits on data processor to ensure the data processor adopts sufficient and adequate security measures; and put in place an appropriate data processing agreement with the data processor.

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