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Personal Information Protection Law

Personal Information Protection Law – How China’s PIPL Affects Your Business


China’s Personal Information Protection Law (PIPL) sets out the domestic and international data protection laws regarding the handling of the personal data of Chinese citizens. Companies looking to expand in China will be affected by the law, which will take effect. There are severe penalties for non-compliance with China’s PIPL law. Penalties include loss of operating licenses, fines of up to $7 million or up to 5% of the company’s revenue, and full suspension of operations. PIPL, like other security measures, places more emphasis on the process of respecting the information it contains. Chinese legal documents such as the cyber security law (CSL) and the data protection law (DSL) are very strict.

Personal Information Protection Law

In this blog, we’ll discuss how China’s privacy policy, PIPL, affects your business and how to stay compliant. However, like any real estate document, china’s PIPL cannot hinder business in the world’s second-largest economy. Data laws can be a challenge for many multinational enterprises (MNES) as they dictate how organizations handle customer data. China is very strict in protecting the personal data of its citizens. China has developed its own privacy and commercial data management system based on this logic.

What are China’s, Privacy Laws

China's, Privacy Laws

China’s PIPL is a privacy law that regulates businesses’ use of consumers’ personal information for commercial purposes. The law prohibits the transfer of such information outside China’s borders to countries with data protection laws.  For example, china’s cyber security law (CSL) mainly targets information systems (CIIO).

China’s data protection law also targets the leakage of personal information. All these rules and regulations are part of China’s comprehensive information network security plan. The PIPL is the first domestic law of the People’s Republic of China dealing with sensitive personal information. But above all, the law imposes important obligations on those responsible for the processing of personal data. On July 20, 2021, the 13th standing committee of the National Assembly approved the PIPL. The law will come into effect on November 1, 2021, with consequences if violated. The scope of the PIPL is unique in that it sets out the legal basis for processing personal information about consumers.

Who is Chinese PIPL For

Chinese PIPL

The China PIPL applies to all companies and individuals that process personally identifiable information (pi), including personally identifiable information (PII), about Chinese nationals inside and outside of China. Domestic and international trade is subject to private law.

The PIPL China privacy policy also applies to the use of personal information by government agencies. Therefore, anyone who “Processes” personal data and determines the purposes and means of such processing is subject to the law. The law still applies. Some experts believe that PIPL was created to combat price discrimination caused by big data. Let’s say your company uses personal data to analyze the behavior of Chinese customers and offer products and services based on those results. Then PIPL can help you.

Chinese PIPL Requirements

Consider China’s data privacy law principles for international organizations and companies. Now let’s look at some of them.

Personal Information Protection Law Penalty for Violation

Protection Law Penalty for Violation

In addition to DSL and CSL, PIPL requires compliance with entities having data or services in China. As mentioned earlier, non-compliance will harm the company. In addition to a $7.8 million penalty or 5% of last year’s sales. There is also the risk of losing your business card. Failure to comply may result in an institution’s credit rating being downgraded. It can also affect the daily life of the country. Violations result in severe penalties and civil penalties. And data protection agencies can be fined up to $157,000. And imprisonment for non-compliance with the PIPL. The rules prevent companies using big data from making decisions based on the lawful collection of PII. Transparency, fairness, and impartiality should be applied in all cases. Information collection and use.

Consent & Privacy

Consent & Privacy

“Personal data processor” is a pi controller body or a person specially qualified under the act (pi officer) who determines the purposes and means of processing personal data. Please note that in PIPL, personal information refers to information, electronic or otherwise, about an individual or an identifiable individual. Excludes ambiguous data. As part of China’s privacy policy, PI owners must inform the public how their information will be handled. This privacy notice has the same content as any legal document. In addition to privacy laws, companies can only process data if two requirements are met. Businesses can only process Chinese customer data if legal requirements are met. It starts with customer satisfaction.

Personal Information Protection Law According to Religion

Protection Law According to Religion

A user license is one of the strict requirements of PIPL. Companies wishing to use the information of Chinese citizens must first obtain personal or written consent from the individual.

Personal Information Protection Law Management Trust

Protection Law Management

A license is required under the Chinese PIPL. The agency must obtain specific permission from the individual or legal guardian. It should also explain why the data is being processed and how it affects people.

Individuals must accept the following:

  • Data usage limit exceeded.
  • Disclosure of user information to third parties or the public.
  • Using personal images collected by video cameras for purposes other than national security.
  • Processing and storage of personal information

Notwithstanding any consent given to Chinese nationals, Chinese nationals have the right to revoke, delete, modify, access, and copy their consent to use company information. Individuals have the right to object to or restrict the processing of their data. We may object to the use of automated decision-making tools. These requirements can be difficult. And compliance concerns are valid. Companies that monitor and manage user data on SAAS platforms are now required to comply with China’s data privacy law.

How Does PIPL Differ From GDPR?

PIPL Differ

China’s privacy law is based on the EU’s GDPR. PIPL, like GDPR, will give citizens more control over how businesses use their data. There are some differences between the two songs. Both laws are general and define personal data in the same way, but PIPL and GDPPR protect sensitive data. However, many types of information are considered confidential.

How to Comply With Chinese Privacy Laws

Chinese Privacy Laws

To fully integrate with PIPL, companies must be able to manage their assets. Therefore, companies may need to re-evaluate their data protection practices. Since PIPL is similar to GDPR, some companies may want to adopt the same rules as GDPR. Data protection standards, on the other hand, are different.

Businesses are required to appoint a national appointee to handle privacy matters under the new law. The company will also need to design new infrastructure for its operations in China. In addition, PIPL China’s privacy policy emphasizes the need to protect Chinese data within its borders. One way to keep your data local is to use a Chinese cloud service. However, this is only one aspect of the law. The only way to get your company’s data PIPL compliant quickly is to use a data solution as an internal service provider.

How In Country Helps Your Business Comply With Chinese Data Protection Law

Chinese Data Protection

Incountry, a data residency as a service platform, helps enterprises resolve data residency compliance issues without disrupting business operations. As a result, businesses can continue operations and global expansion without worrying about data inconsistencies. Moreover, in-country offers international companies an easy way to enter the Chinese market, which is organized and flexible. As an Alibaba cloud partner, in-country combines a complete solution for local data backup and home monitoring.

Incountry has successfully worked with many multinational companies around the world and helped them comply with data regulations. For example, in-country recently partnered with IBM consulting to implement and deliver out-of-the-box data persistence services to Salesforce. Working with IBM consulting, in-country has developed a solution to help you comply with local regulatory laws. The integrated solution also includes a secure gateway for local data transfer, storage, and processing.


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