Significant Changes To China's CBDT Regulatory Framework -A Brief Analysis On CAC's New Draft Regulation

On September 28, 2023, the Cyberspace Administration of China ("CAC") issued the Notice to Seek Public Consultation on the Provisions on Regulating and Facilitating Cross-Border Data Flows (Draft for Public Comments) ("Regulations"). We believe that new Regulations will substantially change the regulatory framework for Cross Board Data Transfer ("CBDT") in China, and the Multinational Companies will have much less uncertainty in the process of CBDT.

Specifically, compared to the Measures on Security Assessment for Outbound Data Transfer ("Security Assessment Measures") and Measures for the Administration of Standard Contracts for Outbound Transfer of Personal Information("Standard Contract Measures"), the Regulations significantly streamline enterprises' cross-border compliance responsibilities. By introducing "exemptions" and refining the criteria that initiate security assessments, standard contracts, and certifications, the Regulations aim to considerably