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Data is an integral element of production in today’s digital economy. Just as carmakers can’t produce their new model without financial capital, companies delivering cutting-edge software and services require sufficient quality data in order to provide cutting edge software and services – thus strong data management has become an integral business requirement.
That is why Hong Kong’s government is making such an effort to transform Hong Kong into a global data hub. They encourage businesses in mainland China to send data through Hong Kong in order to reduce compliance costs for them and support national development more actively. Furthermore, this initiative seeks to create more high-quality jobs within this sector by capitalising on Hong Kong’s strengths in digital infrastructure, technology and innovation.
Data is becoming an essential form of capital in today’s economy, fuelling innovation in products and services like artificial intelligence (AI) and blockchain technologies. Furthermore, data is becoming an indispensable asset to businesses – driving productivity and competitiveness while driving productivity itself – without access to sufficient data, an AI system cannot be constructed – while companies must manage data while protecting privacy as part of their growth strategies.
As data usage in Hong Kong evolves, it is vital that businesses understand how laws and regulations will impact them. Doing so can enable you to develop effective strategies to manage data while meeting regulatory requirements. In this article we explore some key legal principles and frameworks pertaining to data usage here.
The PDPO defines personal data as any information relating to an identifiable natural person regardless of its source, which conforms with international norms and parallels other legal definitions such as China’s Personal Information Protection Law or Europe’s General Data Protection Regulation.
However, as the PDPO does not contain any express provisions conferring extra-territorial application, the board determined that Google LLC did not qualify as a data user under this Act as they did not operate any operations related to collecting, holding, processing or using personal data in or from Hong Kong. They adopted a longstanding principle which holds that local legislation rarely has extraterritorial effects without compelling evidence to the contrary.