Despite its widespread use in China, multinational companies struggle to integrate the popular Chinese messaging service WeChat into IT solutions through approved, globally used platforms.
China’s regulatory framework on data flows and other technology advances are restricting international companies in ways not seen in other markets.
The recently released, and newly effective Administrative Regulations for Online Publishing Service explicitly restricts foreign investors from providing online publishing services, sets licensing and approval requirements for the types of cooperative projects in which domestic and foreign entities can engage, and outlines strict rules on technical equipment and data localization.
China’s new draft Cybersecurity Law has raised a broad range of potential concerns for US companies seeking to operate in China, including vague definitions of key terms such as “network operator” and “critical information infrastructure,” intellectual property aspects of product certification, cybersecurity standard-setting, and liabilities for those that are unable to comply with provisions in the law.
Like energy, human resources, and financial capital in previous generations, data has become a key input for many companies hoping to improve their products and services and better understand their customers. For American companies doing business in China, the insights into customers and operations gained through big data tools are increasingly valuable.