China Mulls Forcing US-Listed Companies to Surrender Data Management to 3rd Party Firms

Beijing is coming down with even tougher regulations on foreign exchange-listed companies, by proposing that firms seeking US public listings hand over control of their data to state-backed companies.

According to Reuters, which cited sources familiar with the matter, Chinese regulators are looking to impose tighter rules on companies’ abilities to relocate Chinese domestic data to overseas countries, as per China’s stringent national security laws. Although both the China Securities Regulatory Commission (CSRC) and the Cyberspace Administration of China (CAC) both declined to comment on the specifics of the proposal, a final decision is expected to be made come September.

The latest plan is allegedly part of a broader series of proposed steps to expand Beijing’s oversight of China’s tech sector. Other plans include curtailing unfair competition, more stringent reviews of overseas listings, as well as analyzing firms’ handling of consumer data. In fact, just last month, the CAC submitted a draft legislation that would force companies with over 1 million users to undergo security reviews prior to their foreign exchange debut.

In the meantime, China’s National People’s Congress recently passed a new law regarding security measures of online user data privacy. The latest regulatory measure will now force tech companies to ensure that user data is stored securely, as well as new conditions under which firms can collect personal data, such as mandatory consent.

Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Gold’s Wild Bull Run: Are Markets About to Break? | Mike McGlone

First Majestic Silver: The Santa Elena Mine

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

China’s Banking Regulator Bans Lenders from Selling Commodity-Related Products to Retail Investors

Amid the volatile jump in commodity prices, China’s banking regulator has ordered lenders to halt...

Thursday, May 27, 2021, 11:08:00 AM

China’s Gold Imports Surge 17% in July

China’s net gold imports through Hong Kong increased by 17% in July compared to June,...

Wednesday, August 28, 2024, 07:54:21 AM

Property Developer Kaisa Misses Payment as China’s Default Contagion Continues

In yet another testament that China’s real estate sector is crippling under an acute debt...

Sunday, November 7, 2021, 03:51:00 PM

China Should Follow China’s Position On Russia-Ukraine War

China recently released its position on the “political settlement of the Ukraine crisis” as its...

Saturday, February 25, 2023, 11:32:00 AM

US Navy: China Could Invade Taiwan Before End of Year

The US Navy has heightened the alarm over a potential China invasion of Taiwan, this...

Friday, October 21, 2022, 11:00:34 AM