Written by Xie Yu, Engen Tham
HONG KONG/SHANGHAI (Reuters) – Shanghai plans to speed up approvals for foreign companies that want to send domestic data overseas, four sources familiar with the matter said. This is a significant relaxation of China’s strict data regulations announced more than a year ago. Before.
The Shanghai government has in recent weeks discussed a so-called fast-track approval initiative with representatives of some foreign companies operating in the commercial hub, including Western banks and asset managers, two people familiar with the matter said.
The planned move comes as China seeks to attract foreign investors as the world’s second-largest economy faces a slow post-pandemic recovery, a real estate recession and deepening market turmoil. I was disappointed.
Foreign financial firms are lobbying Chinese authorities to allow cross-border information sharing as the Chinese government tightens controls on data generated within its borders as part of national security. There is.
Rules announced in 2022 will require offshore transfers of all “critical” data related to domestic operations to pass a security review by the Cyberspace Administration of China (CAC), sparking confusion among foreign companies. is causing concern.
Shanghai is likely to take advantage of its vast free trade zone to allow foreign companies to move data overseas, allowing the local government to offer tax and other incentives to global companies operating there. can be given, two people said.
The Shanghai government’s plan, the details of which have not been previously reported, is separate from the CAC’s cross-border data transfer approval system, which will continue to apply to foreign institutions in other parts of the country. he added.
One of the people said the Shanghai government’s efforts are likely to be implemented this year.
All sources declined to be named due to the sensitivity of the matter.
The Shanghai government and CAC did not respond to Reuters’ requests for comment.
The Shanghai government said in a statement on its website on Tuesday that the city plans to allow financial institutions to transfer business data overseas under the National Data Transfer Security Protocol, without providing details. Ta.
(Reporting by Hsieh Yu in Hong Kong and Engen Tam in Shanghai; Editing by Sumeet Chatterjee and Muralikumar Anantharaman)
