European companies operating in China must navigate two comprehensive data protection regimes: GDPR and China's PIPL. This guide explains how to achieve compliance with both.
Understanding the Two Regimes
GDPR (EU)
The General Data Protection Regulation applies to:
- EU-based organizations processing personal data
- Non-EU organizations offering goods/services to EU residents
- Monitoring behavior of EU residents
PIPL (China)
China's Personal Information Protection Law applies to:
- Processing personal information within China
- Processing data of individuals in China (even from abroad)
- Providing products/services to individuals in China
Key Similarities
- Consent requirements for data processing
- Data subject rights (access, correction, deletion)
- Data breach notification obligations
- Cross-border transfer restrictions
- Significant penalties for non-compliance
Key Differences
| Aspect | GDPR | PIPL |
|---|---|---|
| Legal bases | 6 legal bases including legitimate interest | More limited, consent more prominent |
| Data localization | No general requirement | Required for certain data types |
| Cross-border transfers | SCCs, adequacy decisions | Security assessment, certification, or SCCs |
Cross-Border Transfer Mechanisms
EU to China
Under GDPR, transfers to China require:
- Standard Contractual Clauses (SCCs)
- Binding Corporate Rules (for intra-group transfers)
- Explicit consent (limited circumstances)
China to EU
Under PIPL, transfers out of China require one of:
- Security assessment by CAC (for large data handlers)
- Personal information protection certification
- Standard contract with overseas recipient
- Other conditions specified by law
Practical Compliance Steps
- Map data flows between EU and China
- Identify applicable legal bases under both regimes
- Implement appropriate transfer mechanisms
- Update privacy notices for both jurisdictions
- Establish data subject rights procedures
- Appoint representatives where required
Common Compliance Challenges
- Conflicting requirements between regimes
- Data localization vs. global operations
- Employee data transfers for multinationals
- Customer data for cross-border services
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Schedule ConsultationDisclaimer: This article is for informational purposes only and does not constitute legal advice. For advice on your specific situation, please contact me directly.
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