Guidance

Overseas business risk: China

Updated 24 September 2025

1. The Opportunity

China is the world’s second largest economy, the UK’s third largest trading partner including Hong Kong, or fifth largest excluding Hong Kong. Total trade in goods and services (exports plus imports) between the UK and China was £98.4 billion in 2024, supporting jobs and sustaining livelihoods across the UK. Explore opportunities for exporting to China in our country guide on great.gov.uk.

China contributed almost a third of global growth from 2000 to 2023 and is expected to contribute almost 23% of global growth up to 2050. Economic growth remains a central objective of the Chinese government, despite a slowdown in recent years, with positive messaging on consumption and foreign investment. China’s already large middle-class population is expected to double by 2050. Its population of high-income consumers is expected to rise to over 850 million people, making it a larger consumer market than Europe and North America combined. Increased demand for innovative products, high-end consumer goods, and services represents a significant opportunity for UK companies.

However, doing business in China presents challenges as well as opportunities. Although the Chinese government has taken steps to improve market access for foreign businesses through new legislation, longstanding structural challenges persist.

Restrictions remain in key areas of the economy, particularly where national security or strategic interests are involved. Personal networks (guanxi) continue to play a significant role in navigating local bureaucracies, and previously businesses have reported that domestic firms may benefit from preferential treatment, including in legal disputes and public procurement. While China is actively promoting itself as a hub for high-tech and green investment, the business environment remains complex, especially for newcomers unfamiliar with local dynamics.

This product is to help UK businesses understand the risks of operating in China. It is not intended to provide a detailed overview of the opportunities or reflect all aspects of the UK’s relationship with China. It should be consulted alongside other relevant UK Government resources, including those referenced in the China Guidance Hub. For more specific, tailored guidance, please contact our network of International Trade Advisors.

2. Politics and decision-making

The Chinese Communist Party (CCP) is the founding and ruling party of the People’s Republic of China, exercising authority over both government and lawmaking institutions. The Politburo Standing Committee (PBSC) sets overall strategic direction, while the State Council, led by the Premier, oversees day-to-day policymaking and implementation.

Economic and regulatory decisions in China are shaped by a combination of central planning and local implementation. Provincial and municipal governments play a key role in interpreting and enforcing national policies, particularly in areas such as licensing, taxation, land use, and business regulation. Policymaking involves input from a wide range of organisations, including central ministries, state-owned and private enterprises, research institutes, universities, and think tanks.

Recent key policy initiatives have focused on areas such as industrial upgrading, environmental sustainability, and technological self-sufficiency. The Party leadership has also prioritised national security and social stability as guiding principles in decision-making.

3. Economics

Since the launch of economic reforms and the ‘opening up’ policy in the late 1970s, China has experienced sustained economic growth. Between 1978 and 2023, China’s GDP grew at an average annual rate of approximately 9%, effectively doubling in size roughly every eight years.

China is currently the world’s second-largest economy, with a nominal GDP of around US$18.8 trillion in 2024. It is classified by the World Bank as an upper middle-income country, with a per capita income of around US$13,300.

Although growth has moderated in recent years, China is forecast to contribute almost 23% of global growth up to 2050. Growth stood at 5% in 2024, and the government has set a target of ‘around 5%’ for 2025.

4. Intellectual Property

China has increasingly sophisticated IP and legal systems which are used by large numbers of British companies to obtain IP protection and enforcement relief. However, Chinese infringers still pose a significant financial and reputational threat to British companies doing business in China. Damage is not restricted to businesses in the Chinese domestic market – IP-infringing Chinese businesses often have global export capacity.

One source of risk is that most IP rights are territorial, that is they only give protection in the countries in which they have been granted or registered. If you are thinking about trading internationally, then you should consider registering your IP rights in overseas markets. If you are a UK company selling to China, sourcing from China, or even attending the same trade fairs as Chinese companies, your IP is already exposed to risk of infringement. Given China’s ‘first-to-file’, rather than ‘first-to-use’, system for registering IP rights, we recommend international-facing companies to register their rights in China as early as possible.

Another source of risk is that the Chinese IP system can work differently to the UK system. We provide basic information on IP in China on the International IP Service webpage and a range of factsheets on the British Embassy Beijing IP webpage to help British companies navigate the Chinese IP system. We distribute a monthly newsletter informing companies of IP regulatory updates in China. The Embassy supports around 100 IP cases per year.

For more information on our IP cooperation with China or to discuss possible British Embassy Beijing support please contact IP Attaché samuel.stone@fcdo.gov.uk via email. We strongly recommend that companies also consider obtaining legal advice from legal service providers with direct experience of working on IP in China, to assess and inform their approach to protecting IP rights in China.

General information on IP is provided on our intellectual property page. More detailed guidance on protecting IP overseas in other territories is available from the UK Intellectual Property Office.

5. Commercial/Legal Disputes and Travel Bans

As the number of foreign enterprises investing in China and doing business with Chinese partners has increased, so has the number of commercial disputes. For companies seeking to invest in China, it is always wise to conduct thorough due diligence, understand local regulations, and negotiate comprehensive agreements with business counterparts.

There are various options available to settle a commercial dispute, principally litigation, arbitration and mediation. The most appropriate option will depend on the circumstances of the case and companies should seek the advice of a lawyer who specialises in the laws of the People’s Republic of China.

Before entering into a contract in China, companies should take appropriate legal advice regarding the inclusion of suitable dispute resolution mechanisms and governing law clauses in commercial contracts. It is important to consider how, where, and under what law any disputes would be resolved. Contracts entered into in the United Kingdom are not generally enforceable by Chinese courts.

Joint ventures operating within China are considered to be domestic Chinese entities and disputes involving joint ventures will mostly be treated as domestic disputes to be arbitrated in China. A joint venture will have a supervisory panel that can be made up of one or more persons and companies should carefully consider the balance of UK and Chinese representatives, to protect UK company representation and operational control. HMG recommends that businesses seek professional legal and commercial advice before entering a joint venture arrangement, to ensure appropriate safeguards are in place.

5.1 The Chop System

Under Chinese law, any entity legally registered in China must have an official company chop and a financial chop. Chops are red stamps which act as an official seal. There are several other chops with specific functions and are used as a form of signature that is accepted as legally binding. Chops must be made by a specialist company and registered with the local Public Security Bureau.

The holder of an official chop can bind a company in important transactions even where they have not been authorised by the legal representative or shareholders. If chops or other corporate documents such as business licences are lost or stolen a company may be unable to sign contracts, pay wages or withdraw funds.

If a chop is lost or stolen an announcement must be published in an official journal recognised by the local authorities. A company must present its original business licence to register a new chop. If the licence has also been lost or stolen, companies must request a replacement.

The consequences of chop misuse, loss, or theft can be severe and difficult to reverse. The most common risk is that someone will use the chops and/or official documents to take control of a company without the knowledge of its owner or a joint venture partner. Owners based outside China are at a particular risk if no regular checks are carried out on the company. If the perpetrator is the company’s legal representative or CEO/General Manager, it can be very difficult for shareholders to remove them without access to chops and corporate documents.

It is important to establish clear internal controls and access protocols. These may include:

• Restricting access to chops to trusted personnel with defined responsibilities;
• Ensuring no single individual (other than the company owner) has access to all chops and key documents;
• Storing chops securely under lock and key;
• Maintaining a usage log for each chop and regularly reviewing documents bearing the company seal;
• Conducting periodic internal audits and ensuring the legal representative is acting in accordance with shareholder instructions.

These measures can help reduce the risk of unauthorised activity and support legal claims in the event of a dispute.

5.2 Legal Liability

Directors and senior managers may face civil, administrative or criminal liability if they act in breach of Chinese law, administrative regulations or a company’s Articles of Association and cause losses to the company.

A stricter liability applies to the company’s Legal Representative – an individual with broad powers and potentially unlimited liability. An individual appointed as a Legal Representative may be held personally liable in Chinese law for a company’s debts. The legal representatives of some foreign companies in China are individuals who have never been to China.

5.3 Intimidation and threatening behaviour

There have been incidents of foreign nationals being subject to threats and intimidation as part of a business dispute with a Chinese partner. Threats of violence are common although actual violence is rare. The police may be reluctant to intervene and generally will not do so unless a situation does turn violent. If you or your family are threatened in the course of a commercial dispute, you should report it to the local police and obtain a police report.

5.4 Travel bans

Chinese authorities may impose a travel ban on foreign nationals involved in business, civil, or criminal disputes. This can prevent an individual from leaving China until the matter is resolved, which in some cases may take months or years. Travel bans are not always formally communicated in advance. Individuals may only become aware of the restriction when attempting to exit the country, at which point they may be stopped, questioned, and denied boarding.

Travel bans are often used in cases involving unresolved commercial disputes, unpaid debts, or ongoing litigation. They are a recognised legal tool in China and can be difficult to challenge without resolving the underlying dispute.

If you become subject to a travel ban, you should immediately inform the British Embassy or local Consulate-General and seek legal advice from a qualified practitioner familiar with local procedures.

6. Regulatory considerations

6.1 Market Access

6.1.1 Foreign Investment Law

China’s unified Foreign Investment Law (FIL) came into effect on 1 January 2020, and remains the cornerstone of the country’s legal framework for foreign-invested enterprises. The law aims to level the playing field between foreign and domestic firms invested in sectors not specified by the “Negative Lists” (see below). It prohibits forced technology transfers, strengthens intellectual property (IP) protections, and grants foreign firms equal rights in areas such as government procurement and standard setting.

6.1.2 Negative lists

China maintains two main negative lists: the Foreign Investment Negative List (FINL) and the Market Access Negative List (MANL). These negative lists describe restricted or prohibited activities.

6.1.2.1 Foreign Investment Negative List (FINL)

The Foreign Investment Negative List (FINL) specified sectors and activities where foreign investment is restricted or prohibited. In 2017, China introduced a “FINL + pre-entry national treatment” mechanism to govern foreign investment. This specifies that, with the exception of those sectors listed in the FINL, foreign businesses (referred to as foreign-invested enterprises) are to be treated equally to private Chinese businesses. The latest version of the FINL was released on 24 October 2024 and contained 29 restrictions (reduced from 31 in 2021).

6.1.2.2 Market Access Negative List (MANL)

The Market Access Negative List (MANL) specifies sectors and activities where any private investment (foreign or domestic) is prohibited or restricted (subject to government approval, licencing, or other requirements). It builds upon the Foreign Investment Negative List, which limits Foreign Invested Enterprises’ (FIEs) activities only.

The latest version of the MANL was released on 16 April 2025 and contained 106 restrictions across 21 industries, down from 117 restrictions in 2022. However, the 2025 MANL also introduced tighter restrictions in certain sectors. Notably, investment in civil unmanned aerial vehicles (UAVs) and e-cigarettes now require certificate approval.

6.1.2.3 Free Trade Zone and Hainan Negative Lists

China maintains separate Foreign Investment Negative Lists and Market Access Negative Lists for its Pilot Free Trade Zones (FTZs) and the Hainan Free Trade Port, offering greater access than the national list.

6.1.3 Foreign Investment Screening Mechanism (FISM)

On 18 January 2021, China implemented its new Foreign Investment Screening Mechanism (FISM), which covers both Brownfield (mergers and acquisitions) and Greenfield (building new, physical facilities) investment in China. It explicitly includes reference to investments in Hong Kong, Macao and Taiwan. This mechanism reviews foreign investments across a range of sectors including:

• “Defence (military products),
• Important agricultural products,
• Important energy and resources,
• Major equipment manufacturing,
• Important infrastructure,
• Important transport services,
• Important cultural products and services,
• Key information technologies and internet products and services,
• Important financial services,
• Key technologies,
• Other important areas related to national security.”

The broad and undefined scope of terms such as “important” and “other important areas related to national security” grants Chinese authorities significant discretion in interpreting and applying the FISM. The criteria for triggering a review may evolve or be applied flexibly depending on shifting national priorities. There is a risk that some foreign investments may be delayed, restricted, or blocked.

6.2 Other Relevant Laws

6.2.1 Anti-Foreign Sanctions Law (AFSL)

China passed an “Anti-Foreign Sanctions Law” on 10 June 2021. Entities to be sanctioned are “persons or organisations that directly or indirectly participate in the drafting, decision-making, or implementation” of foreign sanctions on China. However, countermeasures may also extend to related third parties.   

In March 2025, the State Council issued implementing regulations for the AFSL, detailing procedures for designating sanctioned entities, expanding countermeasures to include asset freezes, visa restrictions, and transaction bans, and introducing a formal mechanism for sanctioned parties to apply for relief.

While formal designations under the AFSL have been relatively limited to date, the law grants broad discretion.

6.2.2 Counter-Espionage Law

China’s revised Counter-Espionage Law, effective from 1 July 2023, significantly broadens the scope of activities considered espionage, including the handling of data and materials deemed relevant to national security.

The law also strengthens the Ministry of State Security’s investigative powers, allowing authorities to access data, electronic equipment, and information on personal property during investigations. 

While enforcement has so far focused on high-profile or politically sensitive cases, the revised law forms part of the broader legal and political environment that enabled the 2023 crackdown on foreign consulting and due diligence firms. Businesses in data-intensive, due diligence, or strategic sectors may face heightened risk.

6.2.3 National Intelligence Law

China’s National Intelligence Law, enacted in 2017 and amended in 2018, requires all organisations and individuals in China to cooperate with state intelligence work if requested. This obligation applies to foreign businesses operating in China and may include providing access to data, facilities, or personnel. The law does not specify limits on the scope of such requests, and there is no formal mechanism to challenge them.

Businesses handling sensitive data or operating in regulated sectors should assess their exposure and seek legal advice.

6.2.4 Unreliable Entity List (UEL)

On 19 September 2020, the Ministry of Commerce issued the Provisions on the Unreliable Entity List (UEL). The Provisions establish a legal framework for the designation of “foreign entities” deemed to have acted contrary to China’s interests.

Entities designated on China’s UEL may face restrictions or bans on trade and investment, entry and residence of personnel, financial penalties, and other punitive measures deemed necessary by authorities.

Several foreign companies, primarily in the aerospace, defence, and advanced technology sectors, have been added to the list since 2020, often amidst geopolitical tensions. No UK businesses have been designated to date, and use of the UEL remains limited. Businesses operating in or with China should assess exposure and seek expert legal advice.

6.2.5 Anti-Secession Law

China has enacted an Anti-Secession Law which penalises individuals it deems “secessionist,” including Taiwanese and foreign entities. A conviction can result in severe sentences, including life imprisonment or the death penalty. The law applies extraterritorially, meaning UK businesses operating in China or engaging with Taiwan should be aware of their legal exposure. For business guidance relating to Taiwan, please see the GOV.UK Taiwan Overseas Business Risk page.

7. Business and Human Rights

The UK Government expects all UK companies to respect human rights, workers’ rights and the environment throughout their operations and supply chains in line with the OECD Guidelines for Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights. To this end, businesses should conduct risk-based human rights and environmental due diligence.

7.1 Xinjiang Uyghur Autonomous Region

There is serious concern about widespread and systematic human rights violations in Xinjiang. These violations have included – but are not limited to – the extrajudicial internment of over 1 million Uyghurs and other ethnic minorities; severe restrictions on culture, religion, and language; pervasive surveillance and monitoring; the use of Uyghurs and other ethnic minorities in coercive labour transfer programmes; and the enforcement of birth prevention policies.

In an August 2022 report, the Office of the UN High Commissioner for Human Rights (OHCHR) raised profound concerns over systematic human rights violations in Xinjiang. The report concluded that the violations “may constitute international crimes, in particular crimes against humanity”. Credible reporting suggests Vocational Education and Training Centre (VTEC) systems may no longer exist as before, but labour transfer schemes remain in full force.

Media and non-governmental organisation reports indicate that Uyghurs and other ethnic minorities have been forced to work in the cotton industry, as well as factories producing textiles, automobiles, electronics, and food and agricultural products. There is also evidence that some companies involved in the supply chains of solar equipment and polysilicon may be linked to forced labour.

The OHCHR report indicates an invasive mass surveillance system operating in Xinjiang “has been developed in partnership with private security and technology companies”. Businesses engaging in joint-research and development activities in the fields of surveillance, biometrics, or tracking technology are therefore at heightened risk of facilitating human rights violations.

Businesses will also need to consider the risk of exposure to entities that are involved in constructing or providing services to internment facilities in Xinjiang, or that are providing or developing surveillance technologies (including surveillance cameras, mobile phone apps for invasive monitoring, big data systems for ‘predictive policing’, and software for involuntary biometric data collection).

Businesses should be aware that conducting due diligence in Xinjiang is particularly challenging due to restricted access—especially for auditors. There have been reports of auditors being harassed, threatened and detained. Businesses should consider collaborating with industry groups to share expertise and best practice in identifying and addressing risks of human rights violations, including forced labour.

Under section 54 of the UK’s Modern Slavery Act 2015, certain businesses with a turnover of £36 million or more are required to produce annual modern slavery statements setting out the steps they have taken to tackle modern slavery in their operations and supply chains. Updated guidance for businesses on complying with the Modern Slavery Act is available here.

The Government has also acted through the Procurement Act, which came into force in 2025, to strengthen the rules around excluding suppliers linked to modern slavery from public procurement. For instance, the Act expands the mandatory exclusion grounds which apply if the supplier or a connected person has been convicted of certain offences under Modern Slavery legislation.

In June 2025 within the publication of the Trade Strategy, the government announced the launch of a review into the Government’s Responsible Business Conduct, focusing on the global supply chains of businesses operating in the UK. This will include a review of alternative measures to tackle forced labour.

7.2 Child labour

China is a member of the International Labour Organisation (ILO) and has ratified the two core conventions on child labour. The Chinese government condemns child labour and China’s Labour Law prohibits the employment of minors under 16. However, investigations and reports suggest child labour remains a problem, particularly in the manufacturing and service industries. Education law supports work-study programmes where this does not interfere with normal study, but some internship programmes appear to violate Chinese and ILO standards.

7.3 Ethnic minorities

The Chinese government officially recognises 55 ethnic minority groups in China, in addition to the majority Han Chinese ethnic group. Despite anti-discrimination provisions in Chinese employment law, discriminatory employment practices reportedly persist, including against ethnic Uyghurs and ethnic Tibetans. See Section 6.1 on Xinjiang for more details.

7.4 LGBT persons

Chinese Labour Law specifically protects Chinese workers against discrimination on the basis of ethnicity, sex, or religion. There are no applicable provisions against discrimination based on sexuality or gender identity. A 2018 study by the UN found that significant percentages of LGBT individuals in China had experienced workplace discrimination or harassment due to their sexual orientation or gender. It also found that most employers lack formal anti-discrimination policies or mechanisms to address such issues.

7.5 Gender

China is committed to preventing gender discrimination in the workplace under the International Covenant on Economic, Social and Cultural Rights, and the Convention of the Elimination of Discrimination Against Women (CEDAW). Domestic laws are in place to promote gender equality and prevent gender discrimination and sexual harassment.

However, implementation challenges persist. In its 2023 review, the CEDAW Committee highlighted ongoing gender disparities—particularly affecting rural and ethnic minority women—and raised concerns over reports of coercive labour practices and gender-based violence. The Committee urged stronger enforcement and accountability measures.

7.6 Migrant workers

China has an estimated 300 million migrant workers as of 2024, who have moved from rural to urban areas for work. Most are ineligible for many urban public services, and are employed in low-skilled, low-paid jobs in the secondary and tertiary sectors. Minimum wage guarantees are undermined by illegal employment practices. Migrant workers may be employed without a contract or sign unfair contracts that stipulate a very low basic wage with long overtime needed to earn a living wage. Withholding wages is illegal, but reportedly rife, and frequently causes labour disputes. Recent reforms to the hukou system of household registration have alleviated, but not solved, the problem. Despite recent reforms, hukou-related exclusion from urban services remains widespread, particularly in major cities.

7.7 Working conditions and occupational safety

The guidelines for occupational health and safety are laid down in the Work Safety Law, which was revised in 2014 and again in 2021 to strengthen health and safety risk management, reporting mechanisms, and penalties for non-compliance.

The 2014 amendments establish a blacklist for companies with poor safety records. The Occupational Disease Prevention Law was last revised in 2013 to strengthen protections against work-related illnesses. Enterprises establishing production in China must obtain a permit under the Safety Production Permit Regulations, updated in 2024. These revisions tightened controls on key industrial products, such as steel bars, safety helmets, and gas regulators, and shifted some product approvals, like fertilisers, from a “notification and commitment” model to a pre-certification system.

Despite regulatory improvements, reports of unsafe working conditions remain common, including excessive overtime, exposure to hazardous materials, and inadequate safety training. While official data shows a steady decline in industrial accidents, workplace safety remains a concern. Procedures for workplace injury compensation have been simplified but are still often seen as complex and time-consuming.

7.8 Rights of Association (Trade Unions)

The right to organise, strike, and engage in collective bargaining remains strictly limited in both law and practice. Trade union activity in China must be carried out under the auspices of the All-China Federation of Trade Unions (ACFTU), a quasi-governmental body under the direction of the Communist Party. Nevertheless, Chinese workers are often assertive at the grassroots level about using collective action to secure their rights: illegal protests and strikes are relatively common. Several labour non-governmental organisations (NGOs) operate informally to advise and support workers in labour disputes.

8. Bribery and Corruption

8.1 The UK Bribery Act

The UK Bribery Act applies to UK companies operating overseas and foreign companies with a UK presence. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.

The Act sets out four key offences:

• Two general offences covering the offering, promising or giving of an advantage, and requesting, agreeing to receive, or accepting of an advantage;
• An offence of bribing a foreign public official; and
• A new offence of failure by a commercial organisation to prevent a bribe being paid to obtain or retain business or a business advantage.

The Act recognises that no bribery prevention regime will be capable of preventing bribery at all times. An organisation can avoid liability if it can show that it had adequate procedures in place to prevent bribery.

8.2 Bribery and Corruption in China

Since taking office, President Xi Jinping has led a wide-ranging anti-corruption campaign targeting both Party and government officials, as well as domestic and foreign companies. The campaign remains a central political priority and is expected to continue.

China has enacted extensive anti-bribery legislation. These laws allow for severe penalties: offering bribes can result in up to life imprisonment, while receiving bribes, especially in official capacities, can sometimes lead to the death penalty. The legal framework is frequently updated, with new provisions, amendments, and interpretations issued regularly.

Companies operating in China should ensure their compliance policies and business practices are robust, up to date, and tailored to legal risks. Businesses operating in China should seek expert legal advice.

8.3 Organised Crime

Businesses should remain vigilant against fraud and scams, particularly when receiving unsolicited offers. Basic due diligence, such as verifying counterpart legitimacy and using secure payment methods, is essential when exploring new opportunities, especially via online platforms.

9. UK Export Finance

The government can provide finance or credit insurance to support UK exports through UK Export Finance. For up-to-date country-specific information on the support available, see UK Export Finance’s country cover policy and indicators.

10. Protecting the Digital Security of your Company

China has a comprehensive and evolving legal framework for data protection and cybersecurity, anchored in three core laws: the Cybersecurity Law (2017), the Data Security Law (2021), and the Personal Information Protection Law (2021). These laws have been supplemented by a growing body of sector-specific regulations, local rules, and national standards. Provincial level data regulations, which may include more stringent requirements, are also in place in certain areas of China.

In January 2025, the Regulations on Network Data Security Management came into effect, providing clarity on how the three core laws apply in practice. These regulations consolidate and expand obligations for companies engaged in “network data processing activities,” including those outside China whose activities affect Chinese individuals or national interests. They also introduce new requirements for data classification, risk assessments, and incident reporting, and impose stricter obligations on large platform operators and processors of “important” or “core” data as defined in the regulations.

In March 2024, China also introduced revised rules on cross-border data transfers. The new rules raise thresholds for mandatory security assessments and introduce exemptions for transfers involving fewer than 100,000 individuals’ data annually (excluding sensitive data). However, transfers of “important data” still require prior classification and approval, and companies must continue to comply with one of three mechanisms: security assessment, standard contract, or certification.

China is also piloting cross-border data transfer zones in regions such as Shanghai, Hainan, and Guangdong. These zones aim to streamline compliance for multinational companies, but businesses participating in pilot projects must still ensure they meet national-level requirements.

Our key messages to UK companies concerned about the data regime in China are:

• Seek specialist legal advice. The legal landscape is unclear, but law firms closely follow developments and can advise companies on how to set up projects in China.
• China’s laws do not ban cross border data transfers outright and do not require all sectors to localise data. This should be raised with Chinese partners and local/sector authorities at an early stage and they should provide a plan on how to store/transfer data.
• If cross-border data regulations are used to pressure the transfer of source code or other sensitive IP, request British Embassy support.
• While the October 2020 draft of the Personal Information Protection Law bears some resemblance to the EU’s General Data Protection Regulation, several fundamental differences and uncertainties exist. Companies should monitor legal developments and adapt their privacy protection regimes accordingly.

Cyber security should be treated as a priority issue – especially when considering business opportunities in China. Resources to help companies with cyber security include, HM Government’s Helping UK Tech Business Engage Safely and Ethically with China, 10 Steps to Cyber Security, ‘Cyber Security: what small businesses need to know’, and the Cyber Streetwise website. Businesses wishing to implement enhanced technical controls, and demonstrate that they take cyber security seriously, can apply to be assessed under the Cyber Essentials Scheme, leading to the Cyber Essentials or Cyber Essentials PLUS badge. Companies may also wish to consider joining the Cyber Information Sharing Partnership, which shares real-time cyber threat information.

China’s data security landscape is continually evolving. Companies should continue to seek specific legal advice.

11. Protective Security Advice

Business people should be cautious about what information they bring with them to China, and how they use information whilst they are in China - either using IT or speaking in public places, including hotel rooms and public offices. Further protective security advice can be found on FCDO travel advice.

The UK Government’s National Protective Security Authority (NPSA) also offers advice on protective security.

12. Terrorism Threat

There is a general threat from terrorism in China. Further information on the threat from terrorism can be found in the travel advice for China.