The Personal Information Protection Law (PIPL) is China’s primary data privacy regulation, similar to the EU’s GDPR. It governs how personal data is collected, processed, and stored within China, focusing on transparency, data security, and individual rights. PIPL applies to both Chinese companies and foreign entities processing the data of Chinese residents, making compliance essential for businesses operating in China.

• Data Consent: Organizations must obtain clear, informed consent before collecting personal data.
• Data Transfers: Transfers of personal data outside China are subject to strict regulations and require government approval in certain cases.
• Data Subject Rights: Individuals have the right to access, correct, and delete their personal data.
• Security Requirements: Companies must implement appropriate measures to protect personal data from unauthorized access or breaches.
• Data Minimization: Only data necessary for the specified purpose should be collected and processed.

PIPL came into effect on November 1, 2021. Businesses handling Chinese residents’ data must stay updated on further amendments or guidelines from the Cyberspace Administration of China (CAC).

• Fines and Penalties: Violations can result in fines up to RMB 50 million or 5% of annual revenue.
• Legal Repercussions: Non-compliance can lead to legal action, with affected individuals or regulatory bodies able to pursue claims.
• Operational Disruptions: Non-compliance may lead to suspension of operations or restrictions on data processing activities in China.

• Market Access: Compliance with PIPL allows businesses to operate in China with confidence.
• Enhanced Data Security: PIPL’s data protection requirements reduce the risk of breaches.
• Trust with Chinese Consumers: Transparent data practices build trust among Chinese customers.
• Competitive Advantage: Compliance positions businesses as responsible data stewards, appealing to privacy-conscious consumers.