Cyberspace Administration of China: Platforms with information on more than one million users must apply for review when going abroad for listing

Text/Wu Chenguang, Gao Heng

Zinc Finance News On January 4, the Cyberspace Administration of China and other thirteen departments jointly revised and issued the "Measures for Network Security Review" (hereinafter referred to as the "Measures"), which clearly requires that network platform operators with more than 1 million users' personal information must apply for network security review to the Network Security Review Office when going public abroad. According to the actual needs of the review, the CSRC will be added as a member unit of the network security review work mechanism. The Measures came into force on 15 February 2022.

The relevant person in charge of the State Internet Information Office said that network security review is an important legal system in the field of network security, and since the implementation of the original Measures on June 1, 2020, it has played an important role in ensuring the security of the supply chain of critical information infrastructure and safeguarding national security.

On September 1, 2021, the Data Security Law came into effect, clearly stipulating that the state shall establish a data security review system. Accordingly, the Cyberspace Administration of China revised the Measures for Network Security Review, including situations such as network platform operators carrying out data processing activities that affect or may affect national security.

There may be three situations in which a network platform operator goes abroad to apply for a network security review of listing abroad: first, there is no need for review; second, after initiating the review, after the review is initiated, those whose national security is not affected may continue to go abroad for listing procedures; third, after initiating the review, those whose national security is affected by the study are not allowed to go abroad for listing.

For when to declare, the network platform operator shall apply for a network security review before submitting a listing application to the foreign securities regulator.

It is understood that the Cyber Security Review Office is located in the State Internet Information Office, and the specific work is entrusted to the China Cyber Security Review Technology and Certification Center. Under the guidance of the Cyber Security Review Office, the China Cyber Security Review Technology and Certification Center undertakes tasks such as receiving the declaration materials and conducting formal examination of the declaration materials. The China Cyber Security Review Technology and Certification Center has set up a network security review consultation window.