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, reports Reuters. Foreign firms including financials and automakers such as Elon Musk’s Tesla 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.