Data Security Law of the People's Republic of China (Draft) (Second Deliberation Draft)

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THE FINAL VERSION OF THIS LAW HAS BEEN PASSED. THIS IS A DRAFT.

Contents

Chapter I: General Provisions

Chapter II: Data Security and Development

Chapter III: Data Security Systems

Chapter IV: Obligations of Data Security Protection

Chapter V: Government Affairs Data Security and Disclosure

Chapter VI: Legal Responsibility

Chapter VII: Supplementary Provisions


Data Security Law of the People's Republic of China (Draft) (Second Deliberation Draft)

Chapter I: General Provisions

Article 1: This Law is formulated so as to regulate the handling of data, ensure data security, promote the development and exploitation of data, protect citizens' and organizations' lawful rights and interests, and preserve state sovereignty, security, and development interests.

Article 2: This law applies to data handling activities and security regulation carried out within the [mainland] territory of the People’s Republic of China.

Data handling activities carried out outside the [mainland] territory of the P.R.C. that harming the national security of the P.R.C., the public interest, or the lawful rights and interests of citizens and organizations, are to be pursued for legal responsibility in accordance with law.

Article 3: "Data" as used in this Law refers to any record of information in electronic or other forms.

Data handling includes the collection, storage, use, processing, transmission, provision, disclosure, etc., of data.

Data security refers to employing necessary measures to ensure that data is effectively protected and legally used, as well as the capacity to ensure a sustained state of security.

Article 4: The preservation of data security shall adhere to the overall national security perspective, establish and complete data security governance systems, and increase capacity to ensure data security.

Article 5: The State is to protect the rights and interests of individuals and organizations with regards to data; encourage the lawful, reasonable, and effective use of data; ensure the lawful and orderly free flow of data; and promote the development of a digital economy with data as a key factor.

Article 6: The central leading group on national security is responsible for major decision making and overall coordination on data security, and is to research, draft, and guide the implementation of a national data security strategy and major directives and policies.

Article 7: Each region and department bears primary responsibility for that region or department's efforts on data production, aggregation, and processing, as well as data security.

Regulatory departments such as for industry, telecommunications, communications, finance, natural resources, health, education, science and technology are to undertake data security regulatory duties in the corresponding sector. Public security organs, state security organs, and so forth are to undertake data security regulation duties within the scope of their duties in accordance with the provisions of this Law, relevant laws, and administrative regulations. The State internet information departments are to take responsibility for the overall coordination of online data security and relevant regulatory efforts in accordance with this Law, relevant laws, and administrative regulations.

Article 8: The carrying out of data handling activities shall obey laws and regulations, respect social mores and ethics, comply with commercial ethics, be honest and trustworthy, perform obligations to protect data security, and take on social responsibility; it must not endanger national security, the public interest, or individuals' and organizations' lawful rights and interests.

Article 9: The state is to establish and complete data security coordination mechanisms, pushing relevant departments, industry organizations, enterprises, and individuals to jointly participate in efforts to protect data security, and forming a positive environment for the entire society to jointly preserve data security and promote development.

Article 10: In accordance with their charters, relevant industry organizations are to draft specifications for data security activities, strengthen industry self-discipline, guide members to strengthen data security protections, increase the level of data security protections, and promote the healthy development of the industry.

Article 11: The state is to actively carry out international exchanges and cooperation in the data sector, participate in the formulation of international rules and standards related to data security, and promote the safe and free flow of data across borders.

Article 12: Every individual and organization has the right to make complaints or reports about violations of this law to the relevant authorities. Departments receiving complaints or reports shall handle them promptly and in accordance with law.

Chapter II: Data Security and Development

Article 13: The state is to make overall plans for development and security, persisting in giving equal emphasis to ensuring data security and promoting the development and use of data; using the development and use of data and industry development to promote data security, and using data security to ensure the development and use of data and industry development.

Article 14: The state is to implement a big data strategy, advancing the establishment of data infrastructure, and encouraging and supporting innovative applications of data in each industry and field.

People's governments at the county level or higher shall include the development of the digital economy in the people's economic and social development plans for that level, and draft development plans for the digital economy as needed.

Article 15: The state is to support research into data use and development and data security techniques, encourage the spread and commercial innovation in areas such as the use and development of data and data security, to foster and develop the use and development of data, data security products, and industrial systems.

Article 16: The state is to advance the establishment of a system of standards for data development and exploitation technologies and data security. Within the scope of their respective duties, the State Council departments in charge of standardization and other relevant State Council departments are to organize the formulation and appropriate revision of standards related to technology and products for the development and use of data and to data security. The state is to support enterprises and social groups, educational or research bodies, and so forth, participating in drafting standards.

Article 17: The state is to promote the development of services such as data security testing, appraisals, and certification, and support professional institutions carrying out data security testing, appraisals, and certification service activities.

Article 18: The state is to establish and complete systems for data transactions and management, regulating data transaction conduct, and fostering the data transaction market.

Article 19: The State is to support schools of higher education, secondary vocational schools, research institutions, enterprises, and so forth, in carrying out education and training related to data use and development and data security, employing diverse methods to cultivate professional data use and development and data security talent, and promote professional exchanges.

Chapter III: Data Security Systems

Article 20: The state is to establish a categorical and hierarchical system for data protection and carry out categorized and graded data protections based on the importance of the data in economic and social development as well as the extent of harm to national security, the public interest, or the lawful rights and interests of citizens or organizations that would be caused once the data is altered, destroyed, leaked, or illegally obtained or used, and also determine a catalog of important data and strengthen protections of the important data.

Each region and department shall determine the catalog of important data within that region and department and corresponding industries and sectors on the basis of the categoric and hierarchical protection system, and conduct key protection for data entered in the catalog.

Article 21: The state is to establish a uniform, highly effective, and authoritative data security risk assessment, reporting, information sharing, monitoring, and early warning system to strengthen the acquisition, analyses, assessment, and early warnings for information on data security risks.

Article 22: The state is to establish data security emergency response mechanisms. Relevant regulatory departments shall initiate emergency response plans in accordance with law when data security incidents occur, employing the corresponding emergency response and handling measures to prevent the harm from increasing and eliminate security risks, and promptly issue relevant alerts to the public.

Article 23: The state is to establish systems for data security reviews and conduct national security reviews of data handling activities that impact or might impact national security. Security review decisions made in accordance with law are final decisions.

Article 24: The state is to implement export controls in accordance with law for data that are controlled items related to preserving national security and performing international obligations.

Article 25: Where any nation or region employs discriminatory, restrictive, or other similar measures against the PRC in areas such as investment or trade in data and technology for the exploitation and development of data, the P.R.C. may employ equal measures against that nation or region based on the actual circumstances.

Chapter IV: Data Security Protection Obligations

Article 26: The carrying out of data handling activities shall be in accordance with laws and regulations, establishing and completing data security management systems for the entire process on the basis of the multi-level protection system for cybersecurity, organizing and carrying out education on data security, and employing corresponding technical measures and other necessary measures to safeguard data security.

Those processing important data shall clearly designate persons responsible for data security and data security management bodies to implement responsibilities for data security protection.

Article 27: The carrying out of data handling activities as well as research into new technology for developing data shall be conducive to promoting economic development, improving the well-being of the people, and complying with social mores and ethics.

Article 28: The carrying out of data handling activities shall strengthen risk monitoring, and when data security flaws, vulnerabilities, or other risks are discovered, remedial measures shall be immediately employed; and when data security incidents occur, methods for addressing them shall be immediately employed, users are to be promptly notified as provided, and reports are to be made to the relevant regulatory departments.

Article 29: Those handling important data shall follow periodically carry out risk assessments of their data handling activities as provided, and send risk assessment reports to the relevant regulatory departments. Risk assessment reports shall include the types and amounts of important data being handled; the circumstances of the data handling activities; the data risks faced, methods for addressing them, and so forth.

Article 30: The provisions of the Cybersecurity Law of the P.R.C. apply to the security management for exporting of data from the [mainland] territory that was collected or produced by critical information infrastructure operators inside the [mainland] territory of the PRC; security management measures for the export of important data from the mainland territory that was collected or produced by other data handlers within the [mainland] territory of the PRC are to be drafted by the State internet information department in conjunction with the relevant departments of the State Council.

Article 31: Any organization or individual collecting data shall employ lawful and appropriate methods and must not steal or obtain data through other illegal methods. Where laws and administrative regulations have provisions on the purpose or scope of data collection and use, data is to be collected or used within the purpose and scope provided for in those laws and administrative regulations.

Article 32: When institutions engaged in data transaction intermediary services provide those services, they shall require the party providing data to explain the sources of the data, verify the identities of both parties, and store a record of the review and transaction.

Article 33: Where laws and administrative regulations provide that permits shall be acquired for the provision of services related to data handling, service provides shall obtain permits in accordance with law.

Article 34: Public security organs and state security organs collecting data as necessary to lawfully preserve national security or investigate crimes shall follow relevant state provisions and complete strict approval formalities to do so, and relevant organizations and individuals shall cooperate.

Article 35: Where judicial or law enforcement bodies outside the [mainland] territory of the PRC request the collection or storage of data within the [mainland] PRC, it must not be provided without the approval of the competent PRC state organs; but where treaties or agreements concluded or participated in by the PRC have relevant provisions, those provisions may be implemented.

Chapter V: Government Affairs Data Security and Disclosure

Article 36: The state is to forcefully advance the establishment of e-governance, increasing the scientific nature, accuracy, and efficacy of government affairs data, and increasing the use of data in service of economic and social development.

Article 37: State organs' performance of legally-prescribed duties that require the collection and use of data shall be within the scope of the legally-prescribed duties and proceed in accordance with the requirements and procedures of laws and administrative regulations.

Article 38: State organs shall follow laws and administrative regulations to establish and complete data security management systems and implement responsibility for data security protections to ensure the security of government affairs data.

Article 39: State organs entrusting others to establish or maintain electronic government affairs systems or to store or process government affairs data, or providing others with government affairs data, shall go through strict approval procedures and shall oversee the performance of data security protection obligations by the entrusted parties or parties receiving the data.

Article 40: State organs shall follow the principles of justice, fairness, and convenience for the people, to promptly and accurately disclose government affairs data as provided. Except for that which is not to be disclosed in accordance with law.

Article 41: The state is to draft a catalog of government affairs data to be disclosed, and build a uniform, regulated, interconnected, secure, and controllable platform for disclosure of government affairs data and promoting the use of disclosed government affairs data.

Article 42: The provisions of this chapter apply to the carrying out of data handling activities by organizations authorized by laws or regulations to have public affairs management duties in order to perform their legally-prescribed duties.

Chapter VI: Legal Responsibility

Article 43: Where relevant regulatory departments performing data security oversight and management duties discover that data handling activities have larger security risks, they may give the relevant organizations and individuals a talking to in accordance with the authority and procedures provided. Relevant organizations and individuals shall employ procedures, make corrections, and eliminate hidden dangers as required.

Article 44: Where organizations or individuals carrying out data handling activities do not perform the data security protection obligations provided for in articles 26, 28, 29, and 30 of this Law, the relevant regulatory departments are to order corrections and give warnings, and may give a concurrent fine of between 50,000 and 500,000 RMB, and may give directly responsible managers and other directly responsible personnel a concurrent fine of between 10,000 and 50,000 RMB; where corrections are refused or a large data leak or other serious consequences are caused, a fine of between 500,000 and 5,000,000 RMB is to be given, and they may be ordered to stop relevant operations, suspend operations for rectification, cancel relevant business permits or licenses, and the directly responsible managers and other directly responsible personnel are to be given a fine of between 50,000 and 500,000 RMB.

Article 45: Where establishments engaged in services as intermediaries in data transactions fail to perform the obligations in article 32 of this Law, leading to transactions in data from illegal sources, the relevant regulatory departments are to order corrections, confiscation the unlawful gains, and give a fine of between 1 and 10 times the value of the unlawful gains, or where there are no unlawful gains or the unlawful gains are less than 100,000 RMB, a fine of between 100,000 and 1,000,000 RMB is to be given, and they may be ordered to stope relevant operations, suspend operations for rectification, or cancel related business permits or licenses; a fine of between 10,000 and 100,000 RMB is to be given to the directly responsible managers and other directly responsible personnel.

Article 46: Where article 34 of this Law is violated by refual to cooperate with the collection of data, the relevant regulatory departments are to order corrections and give warnings, and may give a concurrent fine of between 50,000 and 500,000 RMB, and give directly responsible managers and other directly responsible personnel a fine of between 10,000 and 100,000 RMB.

Where article 35 of this Law is violated by providing data to an overseas judicial or law-enforcement establishment without the approval or responsible organs, the responsible authority is to order corrections and give warnings, and may give a concurrent fine of between 100,000 and 1,000,000 RMB, and may give directly responsible managers and other directly responsible personnel a fine of between 20,000 and 200,000 RM

Article 47: Where state organs do not perform obligations to protect data security as provided for in this Law, the directly responsible managers and other directly responsible personnel are to be given sanctions in accordance with law.

Article 48: Where state personnel with duties for regulating data security derelict their duties, abuse their authority or twist the law for personal gain, but it does not constitute a crime, they are to be sanctioned in accordance with law.

Article 49: Where the carrying out of data handling activities endangers national security or the public interest, eliminates or restricts competition, or harms the lawful rights and interests of persons or organizations, punishment is to be given in accordance with laws and administrative regulations.

Article 50: Where violations of the provisions of this law cause harm to others, civil liability is borne in accordance with law.

Where provisions of this Law are violated, constituting a violation of public security management, public security administrative sanctions are given in accordance with law; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Chapter VII: Supplementary Provisions

Article 51: The "P.R.C. Law on the Protection of State Secrets" and other relevant laws and administrative regulations are to apply to carrying out data handling activities involving state secrets. The carrying out of data handling activities involving personal information shall comply with laws and administrative regulations of protecting personal information.

Article 52: Methods for military data security are to be separately drafted by the Central Military Commission on the basis of this Law.

Article 53: This Law shall take effect on xx-xx-xxxx.

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