Calling all U.S. health care providers, medical device manufacturers and telemedicine investors that have projects in China: If you’re not focusing on China’s data-flow and content restrictions, better start now. Richard Ferris and Tianran Yan of Foley & Lardner note that the restrictions should be of concern as they may impede the industry’s growing use of cloud technology and other systems that protect health information but also allow efficient online access.
“U.S. and other industry associations have called upon China to openly discuss changes to rules that require disclosure of sensitive intellectual property and restrict cross-border flows of commercial data,” explain Ferris and Yan. Here are some of the Chinese measures currently restricting the health care industry:
- Personal Data Privacy: Lots of data that’s inside China needs to stay there. Without certain levels of consent, an entity within China cannot transit personal information overseas.
- Criminal Liability: China is proposing criminal liability for the unauthorized sale of personal information obtained “during the provision of services,” say the authors. They note that if enacted, this would “significantly expand the scope of such criminal liability” in the country.
- National Security: Internet companies operating in the country must store customer data on Chinese servers. Not only that, but under proposed laws they also have to hand over encryption keys to public security agencies who will monitor for terrorism threats.
