Recently, China formally passed the Personal Information Protection Law (PIPL), which is the first comprehensive national level personal data protection law of this country. PIPL will become effective as of November 1, 2021, leaving a short time for the companies operating in China (and even certain foreign companies) to become fully compliant to the new personal data protection regime.
Taxpayers should pay attention to the following Chinese tax regulation updates regarding outbound remittance in China: one record filing for multiple remittances under one contract and the cancelation of the Local Tax Surcharges related to Withholding Value Added Tax (VAT) and Consumption Tax (CT).
The subjected question is one of most popular questions raised by the foreign invested entities in China. Our answer is YES. The Chinese entities need to contribute the PRC social security for foreign employees working in China, and said foreign employees need to contribute individual part of the PRC social security as well.
On July 28, 2021, China’s Supreme People’s Court (the top judicial authority) published the 'Provisions on Relevant Issues on the Application of Laws in Hearing Civil Cases Related to the Application of Facial Recognition Technology in Processing Personal Information'. The provisions came into force as of August 1, 2021. They provided guidance for the courts to apply the rules scattered in Civil Code, Cybersecurity Law, Consumer Rights Protection Law, E-Commerce Law, etc. on personal data processing by using facial recognition technology, and have also set specific rules based on the recent practices of the Chinese courts. In this article we provide our comments on several highlights in the provisions.
China’s Ministry of Industry and Information Technology (MIIT), Cybersecurity Administration of China (CAC) and Ministry of Public Security (MPS) jointly published the Provisions on Administration of Security Vulnerability of Network Products (Provisions), which will be in force as of September 1, 2021. The Provisions have established rules for the detection, collection, publication and other activities in relation to the security vulnerability of network products.
A few days ago, Cyber Administration of China (CAC) has shaken the online business sector with the cybersecurity review on Didi (world’s biggest online ride-hailing company) and other three online business companies to prevent data security risks, citing the Cybersecurity Review Measures.
Shenzhen, the leading financial and production center for China and home of many Chinese internet and tech giants such as Huawei, Tencent and DJI, enacted its regional data protection law, Data Regulation of the Shenzhen Special Economic Zone (Shenzhen Data Regulation) on June 29, 2021. Shenzhen Data Regulation will become effective as of January 1, 2022.
In June of 2021, the People’s Bank of China (PBOC, China’s central bank and major financial regulator) published the draft version of amended Anti-Money Laundering Law (Amended AML Law) seeking for public opinion. Amended AML Law contains major changes to improve the effectiveness of its legal framework to combat money laundering and terrorist financing and has expanded AML obligations to all individuals and organizations. In this article, we summarized the highlights of the Amended AML Law.
On July 2, 2021, the Cyberspace Administration of China (CAC) announced on its website that it has started a cybersecurity review on Didi (world’s biggest online ride-hailing company), and during the review Didi is not allowed to register new users. CAC did not offer details about this law enforcement action, but said its purpose is to prevent data security risks, citing its Cybersecurity Review Measures. The announcement (see here) was published just two days after Didi’s huge IPO on NYSE. On the same day, Didi’s share fell as much as 10.9% after the open and was closed with a down of 5.30%. On July 4, 2021, CAC further ordered the removal of Didi’s ride-hailing app from the app stores with the reason that the app has “severely violated the laws and regulations when collecting and using personal information”, and On July 5, 2021, CAC further announced cybersecurity review on three other online platform operators providing cargo transportation hiring services and recruitment services.
The new double taxation agreement between Spain and China has now also completed the internal legislative procedure in China, and, thus, has entered into force, according to Announcement (2021) No. 16, which was issued by the State Administration of Taxation (SAT) on June 21, 2021 and made public later.