The People’s Bank of China (PBOC) and five other regulatory bodies in the Chinese mainland have unveiled a new guideline to simplify cross-border data flows within the financial sector, aiming to strike a balance between openness and security.
Under the new framework, key data and personal information can move more freely overseas, with certain business activities now exempt from routine data security checks. While these exemptions streamline operations for banks, insurers and fintech firms, institutions are still required to deploy robust security measures such as encryption and access controls.
By clarifying which data transfers need oversight, the guideline reduces uncertainty for financial institutions operating across borders. This is expected to cut red tape, lower compliance costs and attract more international investment into the Chinese mainland’s financial markets.
Industry analysts say the move reflects a broader trend toward financial innovation and global integration. One expert notes: 'Clear rules are vital for cross-border fintech partnerships. This guideline should help fintech startups and established banks navigate data security without slowing down growth.'
As digital finance continues to expand, the Chinese mainland’s updated data rules could set a new standard for balancing openness and security in global finance.
Reference(s):
China simplifies data rules for financial sector to boost openness
cgtn.com
