Key Changes in Data Export Regulations
Shanghai, China’s business hub, has authorized the transfer of certain data overseas without requiring security assessments. This new policy affects three sectors: intelligent and connected vehicles, mutual funds, and biomedicine.

Impact on Businesses and Investments
The relaxation of data transfer rules marks a significant shift in Beijing’s stance, especially under President Xi Jinping’s administration, which recently tightened control over data exports. This move aims to attract foreign investments amidst an economic slowdown.

Background and Industry Reactions
In 2022, China enforced a stringent law mandating security reviews for all significant offshore data transfers. This created delays and uncertainty for foreign companies. Automakers like Tesla and Volkswagen have been advocating for clearer data transfer policies, essential for their global operations.

Specifics of the New Policy
The new regulation, announced at a Shanghai event attended by Tesla, Ford, and BMW, will allow companies in Shanghai’s free-trade Lingang Area to transfer data without additional security checks. This pilot project will expand the list of transferable “ordinary data” over time, potentially making Lingang a key hub for cross-border data exchange.

Tesla’s Strategic Move
Tesla, which operates a factory in Lingang, is particularly keen on using Chinese data to develop its Full Self-Driving system. This regulatory change supports Tesla’s strategic plans to process vehicle data within China for global development.

Future Prospects
As part of its broader strategy, the Shanghai government aims to expand the list of permissible data for export, which includes manufacturing details, R&D information, and after-sales services for the auto sector. The national cyberspace agency is also considering easing data-export rules for international trade.