China: Opened consultation on draft interim measures for data security management of accounting firms including cybersecurity measures

On 2 November 2023, the Ministry of Finance of the People's Republic of China opened a public consultation on the draft interim measures for data security management of accounting firms until 11 December 2023. The draft measures aim at establishing a governance structure and internal management system in order to prevent unauthorised access. The draft measures outline the measures firms have to follow to ensure data security, the definition of data and the responsibilities of all parties involved. The draft measures specify that accounting firms bear the primary responsibility for the data security of their organisations, with supervisory bodies designated for oversight. Furthermore, the draft measures include obligations related to hierarchical classification of data, data transfer, encryption, backup and network security. Lastly, the measures outline enhanced systems for supervision, focusing on the finance, energy, communications, transportation, science and national defence sectors. Violations of the proposed measures would be subject to penalties in accordance with the Data Security Law of the People's Republic of China.