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The new PRC data security law's blocking statute and its potential impact on cross-border disputes and enforcement actions

Author
Eugene Chen

Registered Foreign Lawyer

Hong Kong

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05 July 2021

A new data security law in China, effective 1 September, poses a potential challenge to how multinational companies handle the cross-border transfer of data requested by foreign justice or law enforcement bodies.

Any party seeking to provide such data is barred from doing so without the permission of Chinese regulators.  Violations of the blocking statute can lead to heavy corporate and individual fines, a suspension of operations and/or revocation of business permits.  For more details please read our client briefing: New PRC Data Security Law - Allen & Overy.

The restrictions on the movement of data is one of nine key challenges for in house counsel identified in the 2021 Allen & Overy White Collar Crime & Investigations Review.

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