Companies Face New Chinese Data Privacy Standards

China has released personal data protection best practices that will likely lead to higher compliance costs for companies operating in China.

The Personal Information Security Specification, which was released Jan. 25 and will be effective May 1, is voluntary. But government regulators can reference it in conducting privacy audits of companies. Failure to comply could lead to government action, privacy attorneys told Bloomberg Law. It affects all companies with data protection obligations under China’s new Cyber Security Law.

While the guidance is voluntary, companies should review their data collection and use protocols to ensure compliance, James Gong, a cybersecurity and ...