The Shanghai Whitelist Pilot for Data Transfers
Cross-border data transfers (“CBDTs") have become a critical compliance concern for multinational companies in China, including Chinese companies with a global footprint. To address some of the inefficiencies that CBDT compliance requirements have introduced, China is now trialing regional deregulation in free trade zones (“FTZs”). One of the more notable recent developments is the testing of a whitelist approach by the Shanghai FTZ, similar to the whitelist approach seen under the GDPR.
On May 17, 2024, the Shanghai FTZ Lingang Special Area released the first three trial lists (collectively, the “Lingang Whitelists”) identifying data types that will be subject to reduced cross-border data transfer restrictions. The lists apply to the data generated in three specific industries, as follows: