The Importance of Data Protection in Hong Kong

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The Hong Kong Personal Data Protection Ordinance (PDPO) establishes a wide range of rights for data subjects and specific obligations for data controllers. It regulates the collection, processing, holding and use of personal data through six data protection principles. The PDPO was first enacted in 1996, with substantial amendments made in 2012 and 2021.

A major aspect of the PDPO is its definition of personal data. In line with international norms at that time, the PDPO defines personal data as information relating to an identified or identifiable person. The PDPO also requires that any personal data collected be used solely for the purposes for which it was collected, and that the personal data is not excessive for those purposes.

While this approach may seem out of step with global trends, there is a good reason for Hong Kong’s position. Its statutory restrictions on cross-border data transfer are based on the notion that the PDPO should apply only to a “data user.” A data user is defined as a person who controls the collection, holding, processing or use of personal data.

This test is very different from the extra-territorial application found in some other data privacy regimes. Many of these regimes require a data exporter to have a “data impact assessment.” The term essentially means an evaluation of the effect that a proposed data transfer will have on the rights and interests of data subjects.

A data impact assessment is not mandatory under Hong Kong law, but it is becoming increasingly common for a data exporter to conduct one when preparing to transfer data out of Hong Kong. There are also a growing number of circumstances where businesses subject to the PDPO will need to undertake a transfer impact assessment because of the application of laws of other jurisdictions to their operations.

As Asia’s leading financial center and a key connectivity hub, Hong Kong is home to some of the world’s largest corporations, professional services firms and fintech startups. Equinix offers a foothold in this strategic location, giving our customers direct network access to their data, business partners and customers across the Greater Bay Area, and around the world. Our services include colocation, interconnection and managed cloud. Learn more about how you can power your digital future at our data centers in Hong Kong.

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