GDPR vs. PIPL: Key Differences You Need to Know The regulatory landscape for global data privacy is dominated by two massive frameworks: the European Union’s General Data Protection Regulation (GDPR) and China’s Personal Information Protection Law (PIPL). While China borrowed heavily from the EU framework when crafting the PIPL, being compliant with the GDPR does not mean you are compliant with the PIPL.
Organizations doing business in both regions must understand the critical operational divergences between these two legal systems. 1. Terminology Differences
Before diving into specific rules, it is helpful to translate the regulatory vocabulary. The two laws use different terms for the exact same roles: Regulatory Concept The individual whose data is collected Data Subject Individual The entity deciding how/why data is processed Data Controller Personal Information Handler The third party processing data on instructions Data Processor Entrusted Party 2. No “Legitimate Interests” Legal Basis
Under the GDPR, companies have six lawful bases to process data. The most popular and flexible of these is legitimate interests, which allows processing without explicit consent if it benefits the business and does not harm the individual.
The PIPL does not recognize legitimate interests. If you process data under the PIPL, you must rely heavily on explicit consent, statutory duties, or the execution of a contract (such as an employment contract). This makes the PIPL a much more consent-centric framework. 3. Strict Data Localization Mandates
The GDPR allows data to move freely across borders as long as the receiving country offers adequate safety mechanisms or signs standard contractual clauses. It does not force you to store data within Europe. GDPR v. PIPL – OneTrust DataGuidance
Leave a Reply