The European Union Chamber of Commerce in China releases a survey on the impact of China's data regulation on European business on Wednesday in Beijing. Photo: Zhang Hongpei/GT

 
China's increasingly optimized regulation on cross-border data flow will be a positive development, which will help relieve the burden on foreign businesses in executing cross-border data transfers, and enhance their confidence in investing in the world's second largest economy, an EU chamber representative told the Global Times.

The comment was made in accompany of the release of a survey by the European Union Chamber of Commerce in China about the impact of China's data regulation on European business on Wednesday.

The findings of the survey showed that the most common types of data transferred abroad by European firms in China are employees' personal information, followed by suppliers' and customers' personal information.

As many as 96 percent of European companies' cross-border data transfers are internal transfers to the companies' headquarters or regional offices, and the associated risk for data breach is relatively low. 

As for the impact of existing data regulations, about one-third companies said they have improved data security management. Adverse impacts include increased compliance cost and the pressure to localize data, information technology systems or operations.

In an encouraging sign, the Cyberspace Administration of China, the country's cyberspace regulator, issued a document containing draft protocols for the regulation and boosting cross-border flows of internet data on September 28, aiming to solicit public opinion.

Cross-border flow of data generated from activities such as international trade, academic cooperation, multinational manufacturing and marketing are exempted from relevant security appraisals, individual information-flow contracts and information protection certificates, so long as the data does not include personal or important information, according to the draft protocols. 

The document also specifies other exemption scenarios, including the provision of personal information overseas as necessitated by an individual's cross-border shopping, flight booking or hotel reservation contracts, or the provision of personal information overseas essential for the protection of an individual's life, health or property during an emergency.

European companies welcome more clarity on terms related to cross-border data transfers, including precise definition of both 'important data' and 'personal information', the chamber said in its report.

The draft protocol is seen as an implementation of the "green channel" for qualified foreign-invested enterprises to efficiently carry out security assessment for the export of important data and personal information, mentioned under the 24 provisions for attracting foreign investment published in August.

It is an earnest effort and positive development as the Chinese government is actively addressing concerns held by the business community over data transfers, said Stefan Bernhart, vice president of the European Union Chamber of Commerce in China, adding that companies are eagerly waiting for those measures to translate into actions.

"At the start of the year, what we received was a mixed signal: the Chinese government is making efforts to attract foreign-invested firms, meanwhile strengthening the regulation from national security perspective. Now, we've got it clearer and encouraged to see the authorities are taking into count more angles including the business, trying to making a balance," Bernhart told the Global Times.

Liu Dingding, a Beijing-based independent analyst, told the Global Times on Wednesday that data could be compared as oil in the new era, which is an important resource too.

"It is significant to guarantee free flow of data across border, while it is equally important to bring that under legitimate framework," Liu said.

Last month, China officially inaugurated the National Data Bureau to coordinate the integration, sharing, development and utilization of data resources. The move is believed to help safeguard data security, boost the digital economy's growth and promote high-quality integrated development of the digital economy and traditional industries.