Data Security: Security Assessment of Outbound Data Transfers Clarified

Data Security: Security Assessment of Outbound Data Transfers Clarified

1. Data Security: Security Assessment of Outbound Data Transfers Clarified

On July 7, 2022, the Cyberspace Administration of China (« CAC”) issued the Measures for the Security Assessment of Outbound Data Transfers (the “Measures”), which will come into effect on September 1, 2022. The principal articles are as follows:

(1) When to make an application at CAC for a security assessment

For an outbound data transfer by a data processor that falls under any of the following circumstances, the data processor shall apply for security assessment: 1


(2) Valid period of security assessment

The result of the security assessment shall be valid for two years. If the data processor needs to continue the outbound data transfer activity after the expiration of the validity period, the data processor shall reapply for the assessment 60 working days prior to the date of expiration of the validity period. 2

(3) Legal liability

Any violation of the Measures shall be subject to the sanctions regulated in the Cybersecurity Law, the Data Security Law, the Personal Information Protection Law and other laws and regulations; criminal liability shall be investigated if the violation constitutes a criminal offense. 3

(4) Grace period

The Measures will take effective as of September 1, 2022. For any outbound data activity carried out before September 1, 2022 that is not in compliance with the provisions of the Measures, rectification shall be completed within 6 months from September 1, 2022. 4


2. Enforcement Process: Rights of the Winning Party to be Improved (Draft for Comments)

The 35th Session of the Standing Committee of the 13th National People’s Congress has recently conducted the initial deliberation of the Civil Compulsory Enforcement Law (Draft for Comments) (the « Draft ») to “better protect the rights of the winning party in a civil litigation”. The principal articles are as follows:

(1) Lawyer’s application for an investigation order

According to the Draft, lawyers are now entitled to apply to the people’s court for an investigation order.5 Upon issuance of the investigation order by court, relevant organizations and individuals shall disclose to the lawyer the information of the property; otherwise, a fine or a detain shall be imposed or, if it constitutes a crime, they shall bear criminal responsibility.6

(2) “Physically on site” at the court to report property status

Under the current rule, persons subject to enforcement are requested to report to the court about their property status. The Draft makes this rule stricter since the persons subject to enforcement shall report in person at the court, and if such persons fail to appear on the designated date, the people’s court mayfine or detain them,7 or include them in the list of “dishonest persons subject to enforcement.8

For said detention, if, after the expiry of the detention period, they still fail to fulfil the obligation to report property, the people’s court is entitled to detain the relevant persons again, but the cumulative period of detention shall not exceed six months.9


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  1. Article 4 of the Measures
  2. Article 14 of the Measures
  3. Article 18 of the Measures
  4. Article 20 of the Measures
  5. Article 52 of the Draft
  6. Article 62, Article 75 of the Draft
  7. Or their legal representative or the person in charge, including foreign individuals residing in China or having assets in China.
  8. Article 46, Article 50 of the Draft
  9. Article 50 of the Draft