Navigate China's Data Security Law: Ensure Compliance And Mitigate Potential Risks

OVERVIEW

China is to reach a new height in enhancing national security in data area. On June 10, 2021, China adopted the widely concerned Data Security Law (the "DSL") at the 29th Meeting of the Standing Committee of the 13th National People's Congress, China's top legislature.

The widely applicable DSL with extraterritorial effect clarifies the State's regulatory system for data security, requires data security protection obligations to be performed, and further increases the penalties based on the second draft of the DSL.

Considering that the DSL will come into effect as of September 1, 2021, during the short grace period, entities to which the law applies are suggested to establish the relevant compliance systems and perform data security protection obligations as required as soon as possible, in order to be prepared for the upcoming implementation of the new legislation.