China Data Processing and Storage

Your customer is asking a straightforward yes/no question: Will any of their data touch China in any way? This includes collecting data from Chinese users, processing it through Chinese servers, or storing it in Chinese data centers. They need to know because China has unique and strict data laws that trigger specific compliance requirements.

Your answer here determines whether you'll need extensive PIPL compliance measures and can make or break deals with security-conscious enterprises. Many Western companies have 'no China' policies due to data sovereignty concerns. Being transparent about China operations helps customers assess regulatory risks and may require additional security assessments or contractual provisions.

Companies often overlook that using certain cloud services or CDNs might route data through China temporarily, even if not stored there. Another mistake is not considering future business plans - saying 'no' now but planning China expansion later can damage trust when contracts need renegotiation.