In the News: EU Chamber Calls for Clarification on PIPL; Concern over Chinese Firms Funding US Disputes; and Cryptocurrency Regulations in Hong Kong

EU flags waving in front of European Parliament building. Brussels, Belgium. Credit: Grecaud Paul/Adobe Stock

European Companies Spent Millions of Euros on Data Compliance

On November 15th, the European Union Chamber of Commerce in China (European Chamber), issued a summary on a recent survey they did amongst foreign companies operating in China. The survey revealed that 10% of the EU companies said they were "wasting millions of euros" to localize their data in China, according to Reuters. The survey highlights that many companies are obliged to undergo the regulatory security assessment (30%), bear increased compliance costs (59%) and face pressure to localize their data, information technology systems or operations altogether (41%). This survey also found that 96% of the data transfers in EU companies in China are internal data transfers to HQ or regional offices, which demonstrates there is minimal risk that the protection of this data would be compromised. The European Chamber also found that 81% of surveyed companies would like clarification on the definition of "important data" that is underlined in China's data privacy laws. In regards to China's data privacy laws, those regulations are detailed in China's Personal Information Protection Law (PIPL), which according to the European Chamber, is very vague and general which may explain why these foreign companies would like clarification on the PIPL's guidelines.