China
9.1. Consequences and penalties for data breach Under the PIPL, data breaches— including unauthorized access, leakage, tampering, or loss due to inadequate protection—require prompt remedial action and notification to affected individuals and regulators such as the CAC. Non-compliance can result in administrative penalties like warnings, orders to rectify violations, suspension of data processing activities, or even revocation of business licenses. Severe breaches may incur fines up to RMB 50 million or 5% of annual revenue. 9.2. Consequences and penalties for other violations and non- compliance The PIPL also penalizes unlawful data collection, lack of valid consent, unauthorized cross-border transfers, and failure to conduct required security assessments. Violations may lead to fines, suspension of data processing, blacklisting, and heightened regulatory scrutiny. In addition to penalties on the organization, responsible individuals —such as executives or data protection officers—may face Consequences of non-compliance
personal fines or be restricted from holding management roles. Authorities may also increase oversight through on-site inspections and mandatory compliance audits. China’s data privacy protection regime is built on the Three Fundamental Laws, with the PIPL acting as the cornerstone. The PIPL requires the processing of personal data to be lawful, legitimate, and necessary, and despite many exemptions provided for in the law, informed consent remains the most- relied-upon legal ground to process personal data for Personal Data Processors in China. In addition to the PIPL, many other laws and regulations govern the processing of personal data in specific industries (such as healthcare and Conclusion automobile) or using specific means (such as AI). Moreover, data compliance under Chinese law also requires reference and conformity to non-binding national standards, as they may be used by law enforcement authorities to interpret laws and regulations.
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