Shanghai’s data flow centre walks the talk, promises international standards, but China’s foreign firms need ‘faster, wider roll-out’

In a step towards freer cross-border data flows and to address the concerns of foreign businesses, Shanghai inaugurated a major data flow service centre in the Lingang free-trade zone on Sunday, with pledges to adopt internationally recognised standards.

The centre will seek data cooperation agreements with Singapore and New Zealand, as well as countries involved in Brics economic cooperation bloc and Beijing’s signature Belt and Road Initiative, with applications including electronic invoices and proof of payments, blockchain and digital identity mutual recognition.

On top of aligning with international practices, additional data flow scenarios are being trialled in Lingang, including “easier access” to overseas websites for foreigners who have checked into a designated hotel, as well as streamlined data exchanges for healthcare companies without the need to share raw data or sensitive personal information, according to the Jiefang Daily newspaper.

“It will explore ways to elevate services to match standards set out in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA),” Ding Rui, the centre’s director, told the newspaper, which is the official daily newspaper of the Shanghai committee of the Communist Party.

The centre is the first of its kind set up by Shanghai’s cyberspace administration to help entities navigate requirements for compliance at “minimal costs and time,” Ding added.

However, the vetting power would be held by the cyberspace watchdog, and the centre could only advise businesses and submit applications on their behalf.