Chinese banks want to provide supply chain finance for Amazon merchants in the United States? Where has Shanghai taken in cross-border data circulation? Security Assessment | National Cyberspace Administration | Automotive | Supply Chain Finance | Amazon | Cross border | Data Export | Data Exchange
A bank in Shanghai has multiple customers selling goods on the Amazon platform of cross-border e-commerce in the United States. The bank wants to provide supply chain finance services, but the premise is, how to identify the authenticity of these customers' overseas trade behavior? Multinational companies also have the same demand, wanting to know the employee information, salary situation, operating income, etc. of their Chinese subsidiaries, but not knowing whether these data can be exported from China.
After land, labor, capital, and technology, data has become the fifth element that global enterprises are eager to pursue. But in the current era of economic globalization, data elements not only need to be accessible domestically, but also need to achieve cross-border two-way circulation. Due to considerations of national security and information privacy, various countries have implemented varying degrees of regulation on data flow. So, how can data flow across borders under the premise of security and compliance?
Shanghai is taking the lead in exploring the way. In the Opinion of the Central Committee of the Communist Party of China and the State Council on Supporting the High level Reform and Opening up of Pudong New Area to Build a Leading Area for Socialist Modernization Construction, it is explicitly stated that Shanghai Pudong New Area will "build an international data port and data exchange.". According to the reporter's understanding, since the release of the opinion, Shanghai has been innovating and cautiously exploring the compliance transmission of cross-border data, and has taken the lead in testing cross-border data transactions and other service trade.
What are the difficulties here? What kind of wisdom did you come up with? How is the current progress?
The demand is very strong
Shanghai Lingang New Area Cross border Data Technology Co., Ltd. was established in August 2020, mainly providing global data circulation, storage, governance, processing, application, and security services. It is a pioneer in the innovation pilot of cross-border data circulation. Since its establishment, Lingang Cross border Data Science and Technology has been focusing on researching how to promote safe, controllable, convenient and efficient two-way cross-border data flow, assisting the government in promoting relevant institutional innovation, building important functional platforms, assisting enterprises in conducting self-assessment of data cross-border flow security, and exploring the development of scenario based low-risk data catalogs.
"Enterprises have a very strong demand for data entry and exit," said Li Jing, General Manager of Lingang Cross border Mathematics. He listed demand scenarios such as financial risk control, headquarters management, digital trade and services, manufacturing, and data compliance import and export. In the manufacturing industry scenario, automobile and port machinery enterprises need to transmit their product operation, sales targets, customer service, etc. across borders, which is an urgent problem that Chinese enterprises need to solve in order to participate in international competition; For example, in the scenario of data entry, which is particularly typical in the field of global scientific and technological cooperation, data must be entered under the premise of safety and compliance to meet the scientific research needs of all parties.
It is reported that in the "Measures for Security Assessment of Data Export" implemented since September last year, multiple situations that should be reported to the national cybersecurity department for data export security assessment were specified, including data processors providing important data overseas; Key information infrastructure operators and data processors processing personal information of over one million people provide personal information to overseas entities.
But to ensure the closed-loop evaluation of data export, Lingang Cross border Data Science and Technology boldly proposed two arrangements. Firstly, in the pre -, mid -, and post stages of data export evaluation, explore the operational mode of pre event, mid event, and post event; Secondly, the concept of "backup and certificate storage" was first proposed. Due to the need for relevant national departments to further verify whether data has been transmitted according to the declared content, data backup is required. However, in the actual operation process, backing up all massive data is not practical. Based on this, Cross border Mathematics proposes to extract feature values from backup data, submit them to relevant departments for preservation, and trace and verify the reliability of backup data through feature values.
Compress the "chaotic zone"
Attempting to build a closed-loop process for data entry and exit is clearly not enough. The standards for identifying key data and determining the level of data risk are the most difficult bones to tackle.
In this regard, Shanghai has chosen to make a small breakthrough and take the lead in exploring and promoting the low-risk cross-border flow data directory.
"We believe that the regulation of cross-border data will ultimately take the form of a negative list." Li Jing said that currently, some data related to critical national infrastructure and national security has been included in the negative list. However, data outside this list does not mean that it can be freely and securely transmitted. In fact, there is still ten or a hundred times more space still in a "chaotic state". The so-called low-risk data directory is to first identify an area in the "chaotic zone" and provide it to the government and enterprises in the form of a positive list, allowing enterprises to transmit data within the range given by the positive list and in accordance with security management rules.
Li Jing introduced that Lingang Cross border Technology has attempted to launch a low-risk cross-border flow data directory for the automotive industry, thereby compressing the "chaotic zone". "On the one hand, this helps relevant departments accelerate the establishment of negative lists, and on the other hand, it also solves the urgent needs of enterprises, helping them to minimize the impact on the development of core businesses when important data identification standards are not yet clear."
Imported board has been opened
In the era of big data, whoever controls the data has the initiative. Building new advantages, Shanghai is racing against time.
It is understood that in order to gain discourse power in the international data market and the ability to allocate global data resources, Europe and America have successively introduced multiple data transmission related rules such as GDPR, and achieved data openness among contracting countries. In November 2021, China applied to join DEPA, which also demonstrated China's determination to accelerate cross-border cooperation in data. DEPA, signed online by Singapore, Chile, and New Zealand on June 12, 2020, is a digital trade agreement aimed at strengthening digital trade cooperation among the three countries and establishing relevant regulations.
At present, Shanghai has been benchmarking against new international digital trade rules such as DEPA and international data hub cities such as Singapore, exploring the creation of functional data facilities for international data cooperation, open and neutral new sea fiber optic cable landing stations, and other new infrastructure.
On April 24th this year, the Shanghai Data Exchange announced the official launch of the international board, and so far, nearly 30 data products such as Shanghai Huayun, Xinhua Heyun, and COSCO Shipping have been listed. The Shanghai Stock Exchange is the first data trading institution in China to open an international board.
Wisdom Ya Information Technology Co., Ltd. has recently completed the listing of three series of products, including the "Wisdom Ya Global Patent", on the international board. Part of the data of Zhizhiya comes from authoritative overseas patent agencies, such as the United States Patent and Trademark Office, the European Patent Office, etc. After multiple data cleaning verifications, it ensures the accuracy and completeness of the data, which can be used for scientific research and commercial decision-making by domestic medical startups.
Tang Qifeng, General Manager of the Shanghai Stock Exchange, revealed that the International Board will first focus on building a data import market, and then gradually lay out the cross-border two-way flow of data, as well as the ways and mechanisms for data export. This year, Beijing and Shanghai have successively released data export security assessment cases, among which Mazda Enterprise Management Co., Ltd. and Sephora Cosmetics Sales Co., Ltd. in Shanghai have passed the data export security assessment. "Faced with the key and difficult points of cross-border data circulation, the Shanghai Stock Exchange, with a national level data exchange as its positioning and mission, is willing to take the lead and propose a Chinese plan to voice China's voice," said Tang Qifeng.
