The US-China Business Council has issued the following press release:
BEIJING—April 21, 2022—China’s evolving data, privacy, and cybersecurity regimes stand to significantly raise the costs of doing business in China, according to a report released today by the US-China Business Council (USCBC), an organization representing more than 260 American companies that operate in the China market.
The American business community in China must now navigate an increasingly complex regulatory environment that includes new and growing requirements ranging from data localization, government reviews of certain data flows across borders, and prescriptive cybersecurity requirements for hardware and software procurement.
The report, "How American Companies are Approaching China's Data, Privacy, and Cybersecurity Regimes," details how conflicting regulations and a lack of clear guidelines hinder pro-active compliance from businesses and negatively impact business and investor sentiment. Companies report that China’s data, privacy, and cybersecurity requirements are inconsistent with other markets and require duplication of hardware, software, and processes. Continuing down this path could lead to the bifurcation of China’s data environment and that of the rest of the global economy, unwinding decades of economic integration.
“American companies recognize the legitimate need for data, privacy, and cybersecurity safeguards in China and globally. Our members seek to comply with those safeguards without hindering mutually beneficial, long-term, digitally driven growth,” said Craig Allen, USCBC president.
“American companies want and need to leverage their global strength in China, but they worry that the costs, complexity, and nature of China’s data and privacy frameworks increasingly will limit their ability to do so,” said USCBC Senior Vice President in China Matthew Margulies.