The new Data Security Law

The new Data Security Law

Since the implementation of Cybersecurity Law (“CSL”) in 2017, there has been much attention on the development of data protection legislation. The DSL is the latest of such legislation.

(534kb Download)

---

Introduction

As anticipated, the 29th session of the 13th National People's Congress Standing Committee passed the Data Security Law (“DSL”). This law will come into force on 1 September 2021.

Data has become the core asset of many enterprises in this age of digital economy. The overall scale of China’s digital economy has increased from RMB2.62 trillion in 2005 to RMB35.84 trillion in 2019. The proportion of the overall scale of digital economy in GDP has also increased from 14.2% in 2005 to 36.2% in 2019. 1 Hence, the urgent need for a national data protection law to protect the safe development of China’s digital economy.

Since the implementation of Cybersecurity Law (“CSL”) in 2017, there has been much attention on the development of data protection legislation. The DSL is the latest of such legislation. Chapters 2 and 3 of the DSL lays down the enabling provisions for the relevant authorities to develop, promote and improve data security. Also, enterprises may expect development in regulations on data governance, data security standards and certification. For the first time, DSL provides for legal recourse against any country which adopts discriminatory practices in relation to data, its development and utilization in trade and investment.