Exclusive-Shanghai compiles data list eligible for faster overseas transfer, document shows

Published 05/17/2024, 03:04 AM
Updated 05/17/2024, 03:06 AM
© Reuters. FILE PHOTO: A sign above an office of the Cyberspace Administration of China (CAC) is seen in Beijing, China July 8, 2021. REUTERS/Thomas Peter/File Photo
F
-
BMWG
-
TSLA
-

SHANGHAI (Reuters) - Shanghai has compiled a list of data that can be transferred overseas without security assessments, according to a government document seen by Reuters, a much anticipated move as China tries to lure foreign investment to boost a sluggish economy.

Foreign firms including financials and automakers such as Elon Musk's Tesla (NASDAQ:TSLA) have been lobbying the Chinese authorities to allow cross-border sharing of information after Beijing tightened control of data generated domestically in a national security drive.

The 2022 rules require all "important" offshore transfer of data related to operations within the country to clear security reviews by the Cyberspace Administration of China. This has caused indefinite delays in data transfers, confusion and concern among foreign firms.

The government of Shanghai, China's market and business capital, has compiled a first batch of "ordinary data" in three sectors - intelligent and connected vehicles, mutual funds and biomedicine. These require the least regulation for data transfers, the government document says.

Under a one-year pilot project, companies registered in the city's free-trade Lingang Area, where Tesla's Shanghai factory is located, may transfer data on the list overseas without needing further security assessments, according to the document,which was shared with companies attending an event announcing the white list in Shanghai.

The document details broader plans for Lingang to become a hub for cross-border data, as well as specific scenarios for each of the three sectors that would be classified as "ordinary data".

For the auto sector, the data includes information involving manufacturing such as procurement and stockpile, research and development including auto design and tests, after-sales services and used car sales.

The Shanghai government's event on Friday about the new scheme with foreign companies included Tesla, Ford (NYSE:F) and BMW (ETR:BMWG), said a person with direct knowledge of the matter.

The city government and the three companies did not immediately reply to Reuters requests for comments.

Shanghai's pilot project follows company demands for more clarity around cross-border data transfers. Data transfer permission was a topic when Musk met last month with top Chinese government officials.

© Reuters. FILE PHOTO: A sign above an office of the Cyberspace Administration of China (CAC) is seen in Beijing, China July 8, 2021. REUTERS/Thomas Peter/File Photo

The list of "ordinary data" will be expanded over time, the document says.

Reuters reported in February that Shanghai planned allow faster cross-border data transfer.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.