02 Aug 2023 Cyber security: Hong Kong inks cross-border data transfer deal for Greater Bay Area with CAC
1. Cyber security: Hong Kong inks cross-border data transfer deal for Greater Bay Area with CAC
On June 30, Hong Kong and Cyberspace Administration of China (hereafter “CAC”) have signed a memorandum to make cross-border data transfers easier within the Greater Bay Area.
While waiting for further details, this memorandum is aimed to promote and better frame the data transfer between HK and GBA, and the southern Special Administrative Region will have a special role in handling data from China.
Former Hong Kong chief executive Leung Chun-ying called in a Facebook post the memorandum a “breakthrough” that comes after years of effort from both sides.
Since 2021, China has implemented a strict regulation regime on Data security, from the Data Security Law and the Personal Information Protection Law to the following regulations on cross-border data transfer (see details on previous articles of Asiallians). This deal between Hong Kong and Greater Bay Area will be an important initiative trying to find a “balance the nation’s cybersecurity and the need for cross-border exchanges” (quoted from Leung).
2. Extraterritorial application of Chinese law: China Passes the Law on Foreign Relations
The 14th National People’s Congress (NPC) has recently adopted the Law on Foreign Relations of the People’s Republic of China (the “Law”), with effect from July 1, 2023.
The law provides the necessary legal guarantees for the country to safeguard its sovereignty, security and development interests amid increased foreign sanctions and restrictions.
It is also the first time that China legalized the extraterritorial application of Chinese law while being declared as being compliant with the UN international law regime.
The Law is more like a declarative statement and written in a very general way, requiring all foreign entities in China to respect Chinese Laws and not jeopardize China’s national security, damage public interests or disrupt public order.
While waiting for subsequent regulations and measures supporting the Law, enterprises shall also be aware of compliance.