Deal on data transfer boosts Hong Kong’s role in the Greater Bay Area
- City’s standing in the broader economic powerhouse can only be enhanced by pilot scheme that will offer comfort to businesses and the mainland authorities
Hong Kong’s bridging role in the Greater Bay Area economic powerhouse is pivotal to its integration with the mainland and its future as an international finance hub. It depends on the free flow of information – fundamental to Hong Kong’s own success – and data security. That means overcoming information barriers that could inhibit the GBA’s development.
It is good news therefore that Hong Kong and mainland China will launch a pilot scheme this month to enable easier cross-border data transfers in the Greater Bay Area. The first phase is to involve the banking, credit referencing and healthcare sectors.
The GBA is Beijing’s plan to integrate Hong Kong, Macau and nine southern mainland Chinese cities into an economic powerhouse.
The scheme, to be implemented in phases, will allow individuals and organisations in the bay area to voluntarily enter a standard contract, which outlines the responsibilities and obligations of both parties in protecting personal information, according to Hong Kong’s Innovation, Technology and Industry Bureau.
Looking beyond those three personal data categories to the commercial and tech sectors, one of the biggest concerns for foreign businesses in China is data safety.
For many, especially tech companies, data storage is a major consideration in choosing their mainland headquarters – if they are to allow the transfer of data beyond Hong Kong, with its common law and different judicial system, international rules and a free flow of information.