In the News: Data Security Law Reform?; China Securities IPOs; and US Import Scrutiny Heightened

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China Seeks to Reassure Foreign Firms over Data Security Laws

The Cyberspace Administration of China (CAC) has sought to reassure foreign companies such as Walmart and PayPal that they can still operate in China despite the new data security law, Bloomberg reported on Aug 17, 2023.

Executives from multiple international companies were invited to a meeting with CAC officials. Sources told Bloomberg that the officials took questions and offered guidance as to how firms can comply with the new rules. The meeting also involved a discussion of solutions such as "a fast-approval mechanism for routine transfers, as well as a curated "white-list" for data categories or even specific companies."

Meanwhile, China's State Council "pledged over the weekend to streamline data transfers in a 24-point plan aimed at addressing longstanding concerns held by foreign companies." Measures proposed in the Opinions on Further Improving the Foreign Investment Environment and Enhancing Foreign Investment Attraction (关于进一步优化外商投资环境加大吸引外商投资力度的意见) include a "green channel" for foreign companies that meet certain requirements, and assistance to Beijing, Shanghai Tianjin, and the Greater Bay Area so that these cities can "devise a list of general data that can be freely exported."