Tesla, Porsche chip in as Shanghai seeks to fix ‘sore point’ for foreign firms with 3-tier cross-border data flow rules
- Shanghai is seeking to roll out a three-tiered cross-border data flow regulation by March in a bid to address a long-standing ‘sore point’ for foreign firms
- American electric car manufacturer Tesla and Porsche’s China sales arm contributed to the proposals, but analysts said they might be too late
Foreign companies including American electric car manufacturer Tesla and Porsche’s China sales arm are among the firms being sought for their input as Shanghai steps up implementation of a three-tiered cross-border data flow regime amid efforts to reel in and retain international businesses.
Officials in China’s prominent industrial and commercial hub are striving to put in place by March lists of data permitted to flow abroad without restrictions, and of data that must receive further scrutiny.
It is billed as a big step in alleviating a long-standing “sore point” jamming the operations of foreign firms, as Shanghai moves to rekindle investors’ faith as well as its economic growth momentum, according to the state-backed Jiefang Daily newspaper.
Analysts welcomed the move, but said the central government still needs to get involved in systemically addressing and rectifying a slew of gripes faced by foreign firms, ranging from data management to national security law compliance.
Under the proposals, data within Shanghai’s Lingang free-trade zone in Pudong district would be categorised into three types.
