Analysis on Regulation on Standard Contract for Outbound Cross-Border Transfer of Personal Information

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PRC Cyberspace Administration issued its Circular on the Draft of Regulation on Standard Contract for Outbound Cross-border Transfer of Personal Information (“the Draft”on June 30, 2022, in order to seek public opinions. This article aims to briefly illustrate recent progress for this new legislative change.

  1. Background for the Issuance of the Draft

PRC Personal Information Protection Law (“PIPL”) which was enacted on August 20, 2021 and implemented since November 1, 2021, has been widely regarded as a first and historical step of Chinese legislation in protecting the personal rights in digital era, which is comparable to the GDPR of EU. The article 38 of the PIPL provided three different approaches for the

The outbound transfer of information has been increasingly important for transactions by subsidiaries of multinationals in different jurisdictions or between foreign companies and their domestic partners. From the perspective of daily operation of multinationals, foreign headquarters may need the concentrated administration of information acquired from domestic subsidiaries. By the same token, domestic branches may also need outbound information transfer (“OIT”) during their regular operation.

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