In Short
The Situation: In the two years since China
enacted the Cybersecurity Law, which granted authorities broad
powers to monitor and investigate activities falling under its
purview, authorities have increasingly penalized violators for not
complying with the Law's data privacy provisions.
The Result: Since the Cybersecurity Law came
into effect in June 2017, numerous instances of zealous enforcement
have been reported. Chinese law enforcement has used related laws
and regulations to crackdown on offenses relating to national
security and public order. It has also devoted significant efforts
to penalize companies for data privacy violations under the
Cybersecurity Law.
Looking Ahead: Companies can expect enforcement
actions to continue. They should regularly and thoroughly review
their data privacy policies and implementation procedures to ensure
they are in compliance.