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How does Data Transfer work under PIPL?  

Article by Tsaaro

7 min read

Introduction 

When it comes to cross-border data transfers, the PIPL and GDPR are similar in several ways, but there are still some variances in the specifics. For companies to transmit personal data to a third country or an international body, both laws provide for a transfer method, albeit the PIPL offers fewer options. The PIPL also imposes various cross-border data transfer restrictions based on the status of organizations – specifically, whether the organization transferring personal information overseas is considered to be an operator of critical information infrastructure – and the volume of personal information processed by organizations.  

Personal information is defined as electronic (or other recorded) data that relates to a recognized or identifiable natural person, excluding information that has been anonymized. According to the PIPL, an “organization or individual that independently chooses the objectives and means for processing of personal information” is referred to as a personal information processing entity (Article 73). This appears to be the data controller idea under the EU General Data Protection Regulation’s Chinese legal counterpart.  

Generally speaking, a processing entity that intends to transfer personal data to organizations outside of China must I inform individuals about the transfers and obtain separate consent (Article 39), (ii) take the necessary steps to ensure that the overseas recipients can provide the same level of protection as required by the PIPL (Article 38), and (iii) conduct a personal information protection impact assessment (Article 55).  

Cross-Border Transfer  

For a cross-border data transfer, Article 39 expressly requires companies to seek separate consent, and the language itself does not include any exceptions. Additionally, it’s not obvious if separate consent would still be necessary if it wasn’t the legal justification for processing at the time of collection. For instance, if a corporation processes publicly available information based on Article 13.6, which does not need authorization at the moment of collection, it would be impossible for businesses to get separate consent from data subjects. On this subject, more regulatory advice could be provided in the future. In additionally to the above-mentioned generally applicable standards, Article 38 provides three transfer options for businesses intending to transmit personal information outside of China. The three transfer methods provided by PIPL are certification, standard contractual provisions, and security assessment. The attributes of the operators determine how these mechanisms can be used.  

If they intend to send personal information outside of China, operators of critical information infrastructure and those handling a “significant volume” of personal information must go through a security assessment conducted by the Cyberspace Administration of China. The proposed Measures for the Security Evaluation of Cross-Border Data Transfer, which is covered below, outline the proposed procedure for the security assessment. Non-CIIOs that fall short of the criteria outlined in these Draft Measures do not need to undergo a security assessment but must select one of the legal transfer channels listed below:  

  1. Obtaining accreditation in personal information protection from professional organizations in compliance with the CAC’s standards.  
  2. Establishing a contract based on SCCs with the data receiver outside of China.  

Article 38 does have a “catch-all” clause that bases a transfer on the fulfillment of additional requirements set out by laws and regulations, but as of yet, it is unknown what those other requirements would be.  

 

SECURITY ASSESSMENT  

CIIOs is the initial class of enterprises under security evaluation. According to Article 40, CIIOs must save all “citizens’ personal information and critical data” created or gathered during domestic activities in China. Unless otherwise mandated by law, designated agencies must complete a security assessment when transnational data transfers are required for operational reasons. Any international transmission of personal data by CIIOs will be the subject of a security evaluation.  

Other than CIOs, a Chinese processing organization should request the CAC for a security assessment under Article 4 of the Draft Measures if it:  

  1. Processes the personal data of over a million people.  
  2. Has collectively sent more than 100,000 individuals’ personal information or more than 10,000 individuals’ sensitive personal information.  

Following the PIPL, “sensitive personal information” refers to “personal information that, once leaked or used unlawfully, may easily infringe the dignity of a natural person or cause harm to personal safety and property security, such as biometric identification information, religious beliefs, specially-designated status, medical health information, financial accounts, information on individuals’ whereabouts, as well as personal information of minors under the age of 14.” (Article 28).  

 

MECHANISM OF SECURITY ASSESSMENT  

When requesting a security assessment for a cross-border data transfer, data processing firms are required to present the following documentation under Article 6 of the Draft Measures:  

  1. A request forms.  
  2. Self-evaluation report.  
  3. The contract that will be signed between the overseas receiver and the data processing organization, or other legally enforceable papers.  
  4. Additional resources needed for the security evaluation.  

 

Loopholes of the PIPL  

Even after the publication of the Draft Measures, there are still many significant concerns surrounding the security assessments. For instance, the duration for computing cumulative transfers is not addressed in the Draft Measures. Furthermore, it is not clear whether group firms with several subsidiaries and affiliates are required to calculate the total number of people whose personal information has been processed or transmitted overseas, or if each subsidiary and affiliate must do so independently. Since the present Draft Measures haven’t been revised since December 2021, we had anticipated a final version to have been published by now. However, this hasn’t happened yet.  

The Draft Measures place a strong emphasis on the security evaluation for cross-border data transfers but do not contain any particular guidelines on the data localization requirements. In other words, it is unclear from the Draft Measures whether data localization is a need for cross-border data transfer for businesses that may also be subject to the requirements for data localization. It’s also not clear if businesses that must undergo security assessments run a higher risk of having the data localization rules imposed upon them.  

The CAC has not yet provided any more information on the two other transfer procedures as of the current date. Particularly, the CAC has not released any sample or standard contracts that would enable parties to comply with Article 38.3 of the PIPL.  

The Certification Specification does not serve as a certification plan outlining all the pertinent controls that a certification body may examine when a firm requests certification. Instead, it just gives a general overview of the standards that would probably be taken into account throughout the certification process. As a result, and in a misleading manner, the Certification Specification does not address several crucial concerns characteristic of certification of this kind, such as identifying accredited certification bodies or outlining how the certification process would be managed by such certification bodies. As a point of reference, Article 9 of the Draft Measures states that the security assessment will take into account whether the contract between the overseas recipient and the data processing entity “fully stipulate(s) the responsibilities and obligations of data security protection,” as explained by the CAC.  

Conclusion  

The Certification Specification is similar to the GDPR’s EU Binding Corporate Rules (“BCR”) in many ways. For example, both outline specific information that must be included in a contract that is enforceable and legally binding between the parties and is intended for usage by international corporations. There are some noticeable distinctions, though. Notably, the BCR requires the EU party with delegated responsibilities to submit to the jurisdiction of the EU courts or other competent authorities if a non-EU party violates the BCR, unlike the Chinese Certification Specification, which requires the overseas recipient to agree to accept the supervision of the Chinese certification body and “accept the jurisdiction of the relevant Chinese laws and regulations on personal information protection.” Take the first step towards a secure your organization’s data by scheduling a call with our privacy expert team at Tsaaro Solutions today.

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  99. In his preliminary account of liquidity preference (the demand for cash) in Chapter 13, this demand is solely a perform of the interest charge; and since the provision is given and equilibrium is assumed, the curiosity fee is decided by the cash provide.

  100. And these bills might embrace fees to your funeral preparation, your huge well being test or nursing residence bills all via the last two or three months of your life, in case you’ve gotten a critical disease.

  101. This means that while there may be lots of genetic diversity among all dogs, only the specific versions of those genes possessed by the small number of founders will be part of the new line.

  102. Hi there, I think your web site could possibly be having browser compatibility problems. When I take a look at your blog in Safari, it looks fine however when opening in I.E., it’s got some overlapping issues. I merely wanted to give you a quick heads up! Aside from that, excellent blog.

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  105. 1-2. pp. Not solely will blocking your project stop it from curling, this wet-and-reshape technique is also used to assist stretch and redistribute the stitches in your knitted fabric — all in the hassle to create the shape you need with out damaging the fibers.

  106. For instance, you could find that one of many very giant exhibits in your business brings in numerous non-choice makers as a result of their union specifies that members get to attend one national conference annually, and that’s the show most of them choose.

  107. The means of production means the site where the commodity is made, the raw products that are used in the production and the instruments or machines that are used for the production of the commodity.

  108. The owner has the right to underwrite a put option on commodity futures that expose him to any pricing risks, because if a buyer decided to exercise his right to buy the underlying contract, the seller is obligated to make the sale.

  109. Agencies do not attach a hard number of probability of default to each grade, preferring descriptive definitions such as: “the obligor’s capacity to meet its financial commitment on the obligation is extremely strong,” or “less vulnerable to non-payment than other speculative issues鈥? (Standard and Poors’ definition of an AAA-rated and a BB-rated bond respectively).

  110. A motivating discussion is worth comment. I believe that you ought to write more about this subject, it might not be a taboo matter but usually people don’t talk about these subjects. To the next! Best wishes.

  111. The difference between stock futures and tangible commodities like wheat, corn, and pork bellies – the underside of the pig that’s used to make bacon – is that stock future contracts are almost never held to expiration dates.

  112. This is a very good tip especially to those new to the blogosphere. Short but very precise information… Thanks for sharing this one. A must read post!

  113. Having read this I thought it was very informative. I appreciate you spending some time and energy to put this short article together. I once again find myself personally spending way too much time both reading and leaving comments. But so what, it was still worth it.

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