China Economic Bulletin: Recent Developments of Data Governance in China and Implications for Foreign Investment
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China Economic Bulletin No. 19–22 (15 August 2022)
Recent Developments of Data Governance in China and Implications for Foreign Investment
We are very pleased to announce that the latest CEB issue of our in-house research hub GCB is finally online. You are invited to read the introduction for free in our newsletter (find table of contents below). The German-Chinese Bureau of Economic Research (GCB) publishes the China Economic Bulletin (CEB) to provide information and analysis on the Chinese economy as well as on trends in outbound and inbound investment.
Introduction (CEB No. 19)
The People’s Republic of China has introduced a comprehensive framework on data protection, data security and data management over the last few years. Already in 2017, the Cybersecurity Law entered into force laying out the legal basis for the handling of digital data. Following the enactment of the European General Data Protection Regulation in 2018, a new Civil Code and laws on the protection of personal data as well as on data security were enacted in 2020 and 2021.
At the same time, at least since 2014, the People’s Republic has gradually implemented a Social Credit System that aims to evaluate the credibility of enterprises and citizens. Such a system naturally generates massive amounts of data. At a first glance, the parallel development of the data-intensive Credit System with its complex and decentralised structure stands in stark contrast to the creation of a legal framework that aims to regulate and protect flows of information and data.?
This paper aims to carve out implications for enterprises doing business with China of current regulations and policies of both the Social Credit System and the development of the various legal norms that aim to secure and protect the handling of data. By analysing the background and development of these regulations and policies, this paper also touches upon the complex relation between the protection of personal data and storage of huge amounts of data in the context of the Social Credit System and identifies certain tendencies of policy transfer between China and the world. This paper, however, cannot in depth elaborate on this multifaceted relationship and rather aims to provide an impetus for further scientific analysis.?
This paper in its first part explains definitions and concepts that are important for the understanding of the following analyses of data security, data protection and social credit frameworks. It does so by briefly recalling the development of cybersecurity policy and legislation in China. We then proceed with analysing the development of the legal framework of protecting personal data by comparing the relevant Chinese norms against European standards. In the next part, we examine the Chinese Corporate Social Credit System by focusing on its application on corporate entities and looking into the development of its normative framework that is rooted in experimental legislation. In an excursus, this paper highlights certain aspects of policy and norm transfer between China and the world. Finally, this paper sums up the findings regarding the background of the development of policies and regulations concerning data security, data protection and social credit handling as well as relevant implications for enterprises in a conclusion.
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Contents?
领英推荐
CEB No. 19 — Introduction
CEB No. 19 — Cybersecurity in China: Departing from Established Standards?
CEB No. 20 — Protection of Personal Information in China: Towards a Rival to European Standards?
CEB No. 21 — The Chinese (Corporate) Social Credit System: From Experimentation towards a Policy Model for the World?
CEB No. 22 — Policy Transfer in the Context of Chinese Data Governance: Multilateral Influence with Chinese Characteristics?
CEB No. 22 — Conclusion?
Authors:?Jasper Habicht, Isabeau H?hn, Jessica K?hler
Pflichtlektüre / Mandatory reading for all in Chinabusiness.