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Shanghai FTZ Publishes Whitelist of Data for Cross-Border Transfer

On May 17, Shanghai's Lingang pilot free-trade zone (FTZ) released a whitelist of data which companies registered with the FTZ may transfer overseas without needing to obtain regulatory approval by way of a security assessment.

The one-year pilot project designates certain data in three sectors—intelligent connected vehicles, biopharmaceuticals, and mutual funds, as "ordinary data". In relation to the auto sector for example, the data includes information involving manufacturing such as procurement and stockpile, research and development including auto design and tests, after-sales services and used car sales. The list also outlines 11 data application scenarios which will enable companies to determine which data fall within the ambit of the list.

Yin Dan, chief information officer of SAIC Volkswagen, said the company has significant outbound data demand regarding vehicle warranty, maintenance, fault diagnosis and spare parts orders. The list has addressed most of its demands and will lower its data compliance costs, he said. Pharmaceuticals and asset managers similarly responded positively to the list, citing benefits such as improved operational efficiencies, lower communication costs, and greater certainty with regards to data flow compliance. Looking ahead, Lu Sen, head of the data department of the Lingang administration, noted that the list will be extended over time, preparing for a negative list for cross-border data flows in the future.