[China] Negative List of Cross-Border Data Transfers in the Shanghai Pilot FTZ and Lingang Special Area (Trial)
On 8 Feb 2025, the Administrative Committee of Lingang New Area published:
Measures for the Administration of the Negative List for Cross-Border Data Transfers in the China (Shanghai) Pilot Free Trade Zone and Lingang Special Area (Trial)
Implementation Guidelines for the Negative List of Cross-Border Data Transfers in the China (Shanghai) Pilot Free Trade Zone and Lingang Special Area (Trial Version)
Press Q&A.
AFAIK this is the first negative list from Shanghai and Lingang. Previously the documents issued by Lingang approached data transfers the other way instead, containing a list of “general data” that it said did not affect or endanger the national economy and financial security etc, and could be exported subject to PIPL requirements.
Over past year, the world’s interest in FTZs seems to have waned significantly due to a perceived lack of ROI from setting up an office there. I have not heard of any MNCs actually setting up an office in an FTZ to enjoy any CBDT benefits.
Key / interesting points
Measures
The municipal-level management departments shall establish a joint working meeting mechanism for data exports in the Shanghai Pilot FTZ and Lingang Special Area. This mechanism is primarily responsible for drafting and dynamically updating the negative list and operational guidelines, as well as addressing issues encountered by data handlers in carrying out data export activities.
[The concern for companies would be both dynamic updates and updates with immediate effect. Resources would be required to monitor updates and change processes if a data type is suddenly added to the negative list.]