Recently, the White Paper on Cross-border Data Transfer Compliance and Technology Applications (2023) (the "White Paper (2023)") was released during the 2023 China (Shenzhen) Data Element Industry Innovation Conference. Compiling of the White Paper (2023) was led by the Open Islands Cross-border Data Transfer Open Source Community SIG with the participation of Han Kun Law Offices and other organizations.
As a prerequisite for the development of digital commerce, cross-border data flows are a new element of world economic flows. Data from the World Trade Organization shows that by 2022, global cross-border data flows will grow by 120.6%, and the trade in digital services will grow by 36.9%, higher than both the growth rate of global trade in services and trade in goods in the same period.
Cross-border data flows have a profound impact on trade models, trade structures, global trade rules, and world trade patterns. Strengthening the exploration of cross-border data flows has become the key to building on China's advantages in the development of the global digital economy. The White Paper (2023) further expands international horizons and cross-border scenarios, focuses on the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, and has the following features:
First, it has a broader international perspective, tracking the latest cross-border data compliance legal developments in Europe, the United States, Japan, and South Korea, supplementing the analysis of the legal environment of China's important trading partners and neighboring countries and regions, such as ASEAN member states, Saudi Arabia, Russia, Taiwan, etc., and comparing them with mainland China's cross-border data rules, so as to provide reference for data processors to carry out cross-border data activities with relevant countries or regions. The regulation of data cross-border further requires cooperation between different countries. The White Paper (2023) also introduces the major international treaties on cross-border data flows today, providing a new perspective for exploring cross-border cooperation.
Second, cross-border data scenarios are more abundant, and new scenarios and applications are explored on the basis of focusing on key cross-border industries. For example, from the perspective of people's livelihoods, we should pay attention to the cross-border flow of personal data of residents in the Greater Bay Area who open bank or securities accounts in different places. Starting from industrial intelligent manufacturing, we should pay attention to the compliance of key industrial data and improve chip manufacturing processes across borders. From the perspective of public health, we should pay attention to the data compliance and export regulations of cross-border medical settlement services and medical clinical research projects.
Third, the cross-border data region is more focused, and the Guangdong-Hong Kong-Macao Greater Bay Area has unique geographical advantages and is an important node for China's cross-border data flows. As an important economic cooperation region, involving "one country, two systems, three customs territories, and three currencies", it has strong economic development strength and cross-border data flow needs. The White Paper (2023) focuses on the development status of cross-border data flows in the Guangdong-Hong Kong-Macao Greater Bay Area, and promotes the research, formulation, and implementation of security rules for cross-border data flows.
Open Islands is China's first open-source community dedicated to building the circulation system of trusted data elements, which was jointly launched by the Shenzhen Data Exchange in concert with national think tanks, colleges and universities and large enterprises, exploring and implementing cutting-edge technologies with the goals of technology open source collaboration, industry standard formulation, and data element scenario implementation.
Han Kun's data protection practice is dedicated to helping leading companies in various industries and regions solve their complex data compliance issues. As compliance lawyers, we work with clients to get right to their problems with on-the-ground solutions. Han Kun is also a practitioner of new legal services in the area of data compliance. In emerging services such as cross-border data security assessments, cross-border data transfer contract filings, cybersecurity reviews, and overseas listing business data compliance reviews, we excel at integrating expertise in different fields to provide clients with innovative solutions to meet their needs at a time when relevant regulations are rapidly evolving.
