How Does China Classify or Regulate Overseas Special Data?

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With the rapid growth of digital technologies and the global flow of data, China has increasingly focused on the governance and regulation of data, especially when it comes to data that crosses its borders. Among these regulations, the classification and management of “overseas special data” — data that involves sensitive information and is transferred or accessed outside China — have become critical topics. This reflects China’s broader strategic goal to secure national data sovereignty, protect personal privacy, and maintain cybersecurity in a highly interconnected world.

Understanding “Overseas Special Data”
In China’s regulatory framework, the term “overseas special data” does not overseas chinese database have a single fixed definition explicitly labeled in all laws. However, it generally refers to data that is sensitive or important to national security, economic stability, and social order, which is either stored overseas or transferred across Chinese borders. This includes personal data, important corporate data, and state secrets that are subject to stricter scrutiny due to their potential risks if mishandled outside China.

Overseas special data encompasses various categories such as:

Personal Information of Chinese citizens, especially large-scale datasets that can affect privacy and security.

Important Data related to critical infrastructure, finance, healthcare, telecommunications, and other key sectors.

Data related to State Security or defense, including data that could impact national sovereignty or public safety.

Legal and Regulatory Framework Governing Overseas Data
China has developed a comprehensive set of laws and regulations to classify and regulate data leaving the country. The following are key pieces of legislation that underpin the control of overseas special data:

Cybersecurity Law of the People’s Republic of China (2017)
This foundational law stipulates that network operators must keep personal and important data within China. When data must be transferred abroad, it must undergo a security assessment to prevent leakage or abuse.

Data Security Law (2021)
This law introduces the concept of “important data,” mandating that such data, especially data considered critical to national security or the public interest, must be strictly controlled. It requires operators handling important data to conduct data classification and establish internal controls.

Personal Information Protection Law (PIPL) (2021)
The PIPL regulates personal information processing activities, including cross-border data transfers. It requires that personal data exported abroad must meet security assessment requirements, contract stipulations, or certification to protect data subjects’ rights.

Measures for Security Assessment of Cross-border Data Transfer (Implemented in 2022)
These measures establish specific procedures and standards for companies transferring data abroad. A security assessment is mandatory when transferring large volumes of important data or personal information outside China.