David Smith, a Partner with The Lawyer "Top 100" firm JMW Solicitors, explains why China's recently introduced data protection legislation matters to the UK and European property sector.
JMW Solicitors LLP - one of The Lawyer's "Top 100" Law Firm
Last month, the People’s Republic of China passed the Personal Information Protection Law (PIPL).
Although the legislation which comes into effect on 1 November 2021 may seem irrelevant to property professionals in Europe, just like the European Union General Data Protection Regulation (GDPR) it has extra-territoriality provisions.
A great many new build developments in the United Kingdom - and, most certainly the largest proportion in Europe, have units that have been sold to individual investors in China.
So there are developers and estate and lettings agents who specifically cater to and target the Chinese market.
However, the majority of these developers and agents are not formally established in China and use local agents to attract investors which will soon have to change.
Under PIPL, any agent who is dealing with Chinese residents as part of their business will need to be established in China or have an appropriate data protection representative who is.
Failure to comply can result in fines being levied in China or blocking of the right to trade which will likely include blocking of agencies' online presence in China via the country's national firewall.
PIPL: Key Takeaways
