Find useful legal information for your business in China!

Can a breach of the Personal Information Protection Act constitute a criminal offence?

Can a breach of the Personal Information Protection Act constitute a criminal offence?

Answer: Yes. While generally, a violation of the Personal Information Law leads to civil infringement and administrative penalties, under certain conditions and to a certain extent, it may also constitute a crime as per Article 235 of the ‘Criminal Law.’ This crime involves infringing upon the personal information of citizens, and the legal consequences include potential imprisonment for up to three years or detention, along with a fine or a single fine.

We are a representative office of a foreign company. Will the registration of personal information required by the Chinese government to leave the country result in the disclosure of trade secrets?

We are a representative office of a foreign company. Will the registration of personal information required by the Chinese government to leave the country result in the disclosure of trade secrets?

Answer: Foreign representative offices and foreign-funded enterprises may have concerns about signing standard contracts and filing registrations, as it may potentially disclose customer information and other trade secrets. This concern is not entirely unfounded. According to the Personal Information Protection Act, any company, including foreign-funded enterprises, is indeed required to disclose their affiliated companies, suppliers, or customers abroad when filing registrations with the Chinese government.

We are a foreign company operating in China, how should we deal with the cross-border provision of personal information in accordance with the Personal Information Protection Act?

We are a foreign company operating in China, how should we deal with the cross-border provision of personal information in accordance with the Personal Information Protection Act?

Answer: Many businesses now have close communication with offshore customers, suppliers or parent companies. The manager of a business may talk to the parent company about an employee who is ill and calls in sick, or he may report a client’s personal issue. This potentially involves the cross-border provision of personal information. The Personal Information Protection Act requires that companies in China should follow one of the three pathways when providing personal information outside of China.

What does the newly implemented Personal Information Protection Act in China do?

What does the newly implemented Personal Information Protection Act in China do?

Answer: The “Personal Information Protection Act” (“the Act”) fills the legislative gap in China’s personal information protection. The General Data Protection Regulation (GDPR), enacted by the European Union in 2018, aims to protect personal information security, privacy, and dignity. The first article of China’s “Information Protection Law” specifies that the purpose of the Act is to safeguard the rights and interests of personal information, regulate personal information processing activities, and promote the reasonable utilization of personal information.