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.
Under a one-year pilot project, companies registered in the
city's free-trade Lingang Area, where Tesla's Shanghai factory is located, may
transfer data on the list overseas without needing further security
assessments, according to the document which was shared with companies
attending an event announcing the white list in Shanghai.
The document details broader plans for Lingang to become a
hub for cross-border data, as well as specific scenarios for each of the three
sectors that would be classified as "ordinary data".
For the auto sector, the data includes information involving
manufacturing such as procurement and stockpile, research and development
including auto design and tests, after-sales services and used car sales.
The Shanghai government's event on Friday about the new
scheme with foreign companies included Tesla, Ford and BMW, said a person with
direct knowledge of the matter.
The city government and the three companies did not
immediately reply to Reuters requests for comments.
MORE CLARITY
Shanghai's pilot project follows company demands for more
clarity around cross-border data transfers. Data transfer permission was a
topic when Musk met last month with top Chinese government officials.
Until recently, Tesla has focussed on efforts to secure
Chinese regulatory approval to transfer data generated by its electric vehicles
out of China for its "Full Self Driving" system.
Reuters reported on Friday that Tesla is pushing ahead with
plans to power the global development of the self-driving system with data from
China that could be processed within the country, part of a strategic shift by
Elon Musk.
Volkswagen's China chief told Premier Li Qiang last year
that it needed more clarity on cross-border data transfers, saying the
transformation of the auto sector is dependent on the international exchange of
data, personnel and knowledge.
The Shanghai government's list of "ordinary data"
will be expanded over time, the document says.
Reuters reported in February that Shanghai planned allow
faster cross-border data transfer.
Beyond Shanghai, the cyberspace agency said in September it
was considering waiving data-export security assessments for some activities,
such as international trade. -