- The Cyberspace Administration of China (CAC) sought public feedback on draft rules governing the transfer of personal data overseas, Reuters reports.
- Under the draft rules, companies collecting personal data would be responsible for the legality, legitimacy, the need for the data, scope, and security of overseas transfers.
- The draft also covers methods of handling personal information by domestic processors and overseas recipients.
- Lately, China has emphasized the risks to national security inherent in transferring user data overseas. The draft rules aim to bolster a data security law implemented last year September.
- Organizations also require approval for cross-border transfer of core and essential data via a unique mechanism.
- Companies ranging from Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc (NASDAQ:BIDU), and JD.com, Inc (NASDAQ:JD) collect troves of user data.
- The app of online recruitment services company Kanzhun Ltd (NASDAQ:BZ) and two apps of the logistics platform Full Truck Alliance Co Ltd (NYSE:YMM) resumed new user registrations. The apps were under review by China's cyberspace regulator.
- The Chinese government recently expressed support for the domestic tech industry, which had been undergoing intense scrutiny.
- Price Action: BABA shares traded lower by 1.41% at $114.39 on the last check Thursday.
