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Beijing introduces Negative List to streamline Data Export in Free Trade Zone

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Beijing has released a data negative list for its Free Trade Zone to facilitate cross-border data transfer for companies operating in the area. The list outlines types of data and personal information needing compliance procedures for export, aiming to ease administrative burdens and improve the business environment.


Beijing is the latest free trade zone to publish a data negative list to facilitate the export of important industry data and personal information out of the country. The data negative list outlines types of data and personal information across five industries which require certain additional compliance procedures in order to be exported. Data not included in the list can be freely exported by companies based in the free trade zone, thus facilitating cross-border data transfer. We explain how the data negative list works and discuss the potential impact on companies operating in the zone.

Beijing has released its first data negative list for implementation in the Beijing Free Trade Zone (FTZ) in an effort to ease cross-border data transfer (CBDT) for companies operating in the area. The negative list was released along with a set of trial implementation measures — the Measures for the Management of Negative List for Cross-Border Data Transfer in the China (Beijing) Pilot Free Trade Zone (for Trial Implementation). These measures outline the rules for companies located in the Beijing FTZ to export “important data” and certain volumes and types of personal information out of the country. 

The 2024 data negative list — the Management List (Negative List) for Cross-border Data Transfer in the China (Beijing) Pilot Free Trade Zone (2024 Edition) — catalogs specific types and volumes of data in five different industries that require certain compliance procedures to be exported. Data not included in the data negative list can be freely exported by companies located in the Beijing FTZ. 

Under China’s Personal Information Protection Law (PIPL) and related regulations, companies that wish to export certain volumes or types of data outside of China are required to undergo certain compliance procedures. This adds a significant administrative burden on companies, particularly those handling large volumes of data or those with overseas operations, such as foreign companies. 

There are currently three different compliance procedures for CBDT: 

The first of the three compliance procedures is the most stringent and applies to critical information infrastructure operators (CIIOs) and companies that export important data overseas. The latter two require a lower compliance burden and apply to companies that provide a certain volume of personal information or “sensitive personal information” overseas. 

In an effort to improve the business environment and ease restrictions on CBDT, in March 2024 the CAC released a set of regulations to facilitate data export, which, among other measures, allowed China’s FTZs to implement their own data governance rules. This includes formulating data negative lists to manage data export from the zones. 

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

China

Navigating Turbulent Waters: Trust Between China and the Philippines

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Despite a July 2024 deal ensuring Philippine resupply missions at Second Thomas Shoal, tensions with China persist, marked by confrontations and deep distrust, indicating potential for future conflict escalation.


Ongoing Tensions in the South China Sea

Despite a July 2024 agreement facilitating uninterrupted resupply missions to the contentious Second Thomas Shoal, tensions between China and the Philippines remain significantly high. Increased aerial and naval confrontations in August, compounded by longstanding mutual mistrust, hint at a precarious situation. Both nations are employing legal strategies alongside military maneuvers, while China’s recent maritime regulations and the Philippines’ military modernization efforts suggest a future marked by conflict.

Rising Provocations and Distrust

The situation deteriorated further in June 2024, when Manila accused Chinese forces of intercepting its boats and injuring a sailor. Although the July deal allowed for a resupply mission without incident, broader tensions persisted as China reportedly fired flares dangerously close to Philippine aircraft in August. The incidents at Second Thomas Shoal illustrate the deepening security crisis that has persisted since 2021, as China continues to challenge Philippine resupply efforts.

Potential for Escalation

While the recent agreement may offer temporary relief, it is unlikely to resolve the long-standing maritime disputes in the region comprehensively. The continuing misinterpretations of the deal and the profound distrust between the two nations suggest an ongoing trajectory of escalating tensions. As disputes over competing claims in the South China Sea intensify, the situation at Second Thomas Shoal serves as a volatile flashpoint for future conflicts.

Source : China–Philippines trust in troubled waters

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Is life getting better for China’s tech billionaires?

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Pony Ma, Tencent co-founder, is China’s richest person with over A$65 billion. Despite past crackdowns, his wealth indicates a potential market recovery, while maintaining state control over the economy.

According to the latest Bloomberg Billionaires Index, Pony Ma, co-founder of Tencent Holdings, is once again China’s richest person, now with a net worth of more than A$65 billion, placing him 27th globally.

Close behind him in the rankings are bottled water tycoon Zhong Shanshan, and Zhang Yiming, the main co-founder of tech giant ByteDance, which owns TikTok.

Only a few years ago, China’s ruling Communist Party launched a crackdown on billionaires and other business leaders. Some were publicly jailed. Others simply disappeared from public view.

Ma’s resurgence might seem like a positive signal of a more permissive market environment. But as we watch China’s private sector grow, we should remember it follows China’s unique playbook.

The ascent of Tencent

Ma’s wealth primarily comes from his stake in Tencent, which he co-founded in 1998 with its headquarters in Shenzhen. As China’s economy grew, Tencent became a world-leading internet and technology company.

Tech billionaire Pony Ma at a government meeting in 2018.
Song Fan/AP

Tencent is well-known for QQ and WeChat, which quickly became two of the most popular instant messaging apps in China and connect more than a billion people.

Tencent is also the largest video game vendor in China, with popular games such as “Honour of Kings” and “League of Legends”.

Last month, Tencent released “Black Myth: Wukong”, China’s first-ever “AAA” video game. AAA is a globally recognised gaming industry buzzword that refers to major, high-budget, standalone productions.

The much-hyped game surpassed 10 million sales across platforms within three days of its release, becoming one of China’s most successful games of all time.

The game itself draws on a 16th century Chinese novel called “Journey to the West” and features various Chinese landscapes. Its popularity aligns with Beijing’s ongoing efforts to boost China’s international cultural appeal.

China’s state-owned media outlet Xinhua highly praised the game for “telling Chinese stories with world-class quality” and offering a new way for global players to understand Chinese culture.

Ma’s fortunes reflect his company’s

This official appraisal means a lot. In previous years, Tencent has had a challenging time coping with Beijing’s strict gaming regulations.

In August 2021, China’s video game regulator announced policies to limit online gamers under the age of 18 to only one hour of play on Fridays, weekends and holidays. This was a major blow to China’s gaming industry, including Tencent.

In December 2023, Beijing introduced more legislation aimed at further capping the amount of money and time that could be spent on video games. The announcement resulted in a 12.4% drop in Tencent’s share price. But the company still promised to strictly implement any new regulatory requirements.

The success of ‘Black Myth: Wukong’ reflects an improving outlook for Tencent.
Andy Wong/AP

Read more:
Chinese game Black Myth: Wukong tops Steam charts. What does it signify for the rest of the gaming world?

A cautionary tale

In China, complying with state regulations is important. Another Chinese tech billionaire, Jack Ma, faced the consequences of publicly challenging them.

In 2020, Jack Ma was poised to launch what was set to be the world’s largest initial public offering (IPO), raising about A$50 billion for his financial technology giant, Ant Group.

However, after he gave a speech in Shanghai harshly criticising Chinese financial regulators for outdated rules and excessive intervention, regulators halted the Ant Group IPO.

Citing concerns that Ant Group’s e-finance products encouraged unrestrained borrowing and investment, China ultimately suspended the IPO in late 2020.

Over the following years, Ant and its affiliate company Alibaba were slapped with billions in fines for alleged breaches of financial regulations.

Getting on the front foot

This phase marked a much stricter regulatory posture from China. The tech tycoons had to adapt to a new reality.

In 2021, Pony Ma publicly stressed the importance of tightly regulating internet businesses, including his own. He also proactively volunteered to meet with antitrust authorities.

Tencent downsized by divesting stakes in various sectors, and the government demanded a restructuring of its financial business.

Many of China’s other billionaires heeded lessons from Jack Ma’s troubles at Ant Group.
Alex Plavevski/EPA

The party remains the ultimate authority

China’s economy is a “socialist market economy”. That is, China’s government thinks of the market as a useful tool to achieve socialist objectives.

That doesn’t mean the private sector doesn’t play a huge role, but the government has long been cautious about the emerging market power of oligarchs as a potential threat to the party’s authorities.

Over past decades of reform and opening up, Beijing has been committed to unleashing market forces, encouraging private sector development and modernising its financial institutions. The precondition is that the state should maintain the ultimate authority to regulate and mobilise market resources.

However, its economy has been stubbornly sluggish post-COVID. The clampdown on the private sector has undermined the confidence of many investors and entrepreneurs, which is crucial for restoring China’s economic vitality.

Last year, Beijing introduced a 31-point action plan in response, aiming to make the private economy “bigger, better and stronger”. Hours after its release, Pony Ma publicly praised the government’s move as “encouraging and inspiring”.

Could spring now be coming for China’s private sector? Perhaps, but only on China’s terms.

Remember, market development is always a means for the state to achieve its own ends. This will never be a story of the market growing while the state steps back.

Read more:
Understanding risks for Australia of China’s slowing economy is Chalmers’ top priority at upcoming Beijing talks

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Zhejiang Province Increases Marriage Leave to 13 Days

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On September 27, Zhejiang Province expanded marriage leave from 3 to 13 days for legally married employees. The new regulations ensure continued pay and benefits during leave and address demographic challenges by encouraging population growth. Businesses must update internal policies accordingly.


On September 27, the 12th meeting of the Standing Committee of the 14th Zhejiang Provincial People’s Congress approved the Zhejiang Province Marriage Leave Regulations (hereinafter referred to as the “Regulations”), extending the marriage leave to 13 days from three days.

According to the Regulations, employees who legally register their marriage are entitled to 13 days of marriage leave, excluding national statutory holidays and rest days. During the marriage leave, employees’ wages, bonuses, and other benefits will continue to be paid by their employers.

Notably, to ensure a smooth transition between the old and new leave regulations and to minimize disputes following the implementation of the new rules, the Regulations state that employees who registered their marriage within one year before the implementation of the new regulations and have not yet taken their marriage leave will be entitled to the new 13-day leave. Those who have already taken their marriage leave can supplement it according to the new regulations.

Businesses with operations in Zhejiang province are advised to amend their internal leave policies and employee handbook as soon as possible.

The extension of marriage leave in Zhejiang Province is part of a broader effort to support population growth and address demographic challenges. The province has seen some positive effects from its initial fertility support policies, which have helped to slow the sharp decline in birth rates.

*Granted to those who take pre-marital checkups, which involve being checked for any health conditions that will affect childbirth.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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