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China's Second Draft Cybersecurity Law's Expanded Data Localization Requirement

By Tiana Zhang, Jodi Wu, Sally Han and Mike He

Cybersecurity has remained a priority for the Chinese government in 2016. Following closely on the heels of the enactment of the National Security Law and the Anti-Terrorism Law, the second draft of the Cybersecurity Law was released for public comment on July 5, 2016. Although still in draft form, when it is adopted, the Cybersecurity Law will impose a number of requirements on companies with business operations within the territory of China that have been subject to heated discussions among multinational companies (MNCs). This article provides a review of a significant amendment in the second draft of the Cybersecurity Law that could have a substantial impact on MNCs' China operations ' the expansion of the law to require the storage of a broad array of personal and business information within China.

The Expanded Data Localization Requirement

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