Alibaba And Other Chinese Stocks Go Jittery As China Tightens Rules On Overseas Data Transfer

The Cyberspace Administration of China (CAC) sought public feedback on draft rules governing the transfer of personal data overseas, Reuters reports.
Under the draft rules, companies collecting personal data would be responsible for the legality, legitimacy, the need for the data, scope, and security of overseas transfers.
The draft also covers methods of handling personal information by domestic processors and overseas recipients.
Lately, China has emphasized the risks to national security inherent in transferring user data overseas. The draft rules aim to bolster a data security law implemented last year September.
Organizations also require approval for cross-border transfer of core and essential data via a unique mechanism.
Companies ranging from Alibaba Group Holding Limited BABA, Baidu, Inc BIDU, and JD.com, Inc JD collect troves of user data.
The app of online recruitment services company Kanzhun Ltd BZ and two apps of the logistics platform Full Truck Alliance Co Ltd YMM resumed new user registrations. The apps were under review by China's cyberspace regulator.
The Chinese government recently expressed support for the domestic tech industry, which had been undergoing intense scrutiny.
Price Action: BABA shares traded lower by 1.41% at $114.39 on the last check Thursday.