Fairfax, VA:  The World Information Technology and Services (WITSA) today signed a multi-association letter addressing data localization mandates and data transfer restrictions in the People’s Republic of China’s draft Data Security Law (DSL) and draft Personal Information Protection Law (PIPL). The letter raises concerns regarding certain provisions relating to data localization and data transfers in the draft legislation.

The multi-association letter reflects WITSA’s existing policy principles established in its Statement of Policy on Restrictions of the Free Flow of Information Across Nationality/Regional Borders. WITSA is taking a strong stance against forced localization of data requirements as these interrupts the free flow of data that underpins the complex online networks connecting the globe in ways that threaten the cultural and economic growth potential of the Internet and Internet-based technologies.

The ability to access technology and transfer data securely across international digital networks is of central importance to any company with international business activities. Cross-border data transfers support many important priorities, including international sales and marketing, transnational research and development, cybersecurity, fraud monitoring and prevention, anti-money laundering, anti-corruption, and a broad range of other activities relating to the protection of health, privacy, security, intellectual property, and regulatory compliance. To avoid prejudicing these priorities, the multi-association letter recommends that the PIPL and DSL avoid the imposition of data localization mandates, onerous data transfer restrictions, and associated data-related barriers.

The signed letter can be found on the following link: https://witsa.org/wp-content/uploads/2021/06/China-DSL-PIPL-MultiAssociationLetter-20210602-English-Translation.pdf