Chinese Firms Will Follow India’s Data Localisation Norms

Modi government’s ministers have started their work right on day one. Ravi Shankar Prasad in his second term as the IT and Law Minister will be looking at passing the much talked about data localization law as soon as the first session of the new government begins. US has criticized India’s data localization norms which are hurting the US Companies.

Talking exclusively to ET on India’s draft data localization law for the foreign companies operating in India, Deputy Director of Guizhou Provincial Cyberspace administration, Chen Benrong said, “Chinese companies will follow all local laws of all the countries they operate in.” Responding to India’s pending data localization bill which is set to become a law as soon as the parliament beings, Benrong said, “Chinese companies will follow the “domestic law of India” on data localization.”

The US Trade Representative’s 2019 National Trade Estimate Report on Foreign Trade Barriers said, “India has recently promulgated a number of data localization requirements that would serve as significant barriers to digital trade between the US and India.”

The US Trade Representative’s 2019 National Trade Estimate Report on Foreign Trade Barriers said, “India has recently promulgated a number of data localization requirements that would serve as significant barriers to digital trade between the US and India.”

On his recent visit to India, US Commerce Secretary Wilbur Ross said, “Our goal is to eliminate barriers to US companies operating here, including data-localization restrictions that actually weaken data security and increase the cost of doing business.” Ross was speaking at the Trade Winds Forum in May in New Delhi after meeting Commerce Ministry officials.

US has banned Huawei’s 5G technology recently alleging corporate espionage however India hasn’t blocked Huawei despite US uproar around the companies unfair practices claiming Huawei is a threat to it’s national security. Meanwhile, Chinese government is also on its way to blacklist foreign companies in China aiming for a backlash to US companies operating in China.

Chinese Commerce ministry spokesman, Gao Feng announced yesterday, “Foreign enterprises, organizations or individuals that do not comply with market rules, deviate from a contract’s spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be included on a list of ‘unreliable entities’.”―India Finance News