Nathaniel Rushforth Shares Insights about Cross-Border Data Transfer with a German Business Delegation in Shanghai

On April 1, Nathaniel Rushforth, senior data security and compliance consultant, mentored six German startups participating in German Accelerator’s China Market Discovery Class 2025-1. His session covered key topics such as cross-border data transfers, data compliance, and differences between the General Data Protection Regulation (GDPR) and China’s regulatory environment. Vivian Mao, partner for the East China region and a long-standing mentor with the program, also provided a one-on-one session to a business leader from Europe’s largest B2B platform for recycled plastics, offering strategic guidance on market entry and business operations in China.

German Accelerator, supported by Start2 Group, has been a trusted partner for startups, corporations, universities, investors, and public organizations for over 12 years. The program enjoys strong relationships with government entities worldwide, including the German Ministry for Economics and Climate Action and Enterprise Singapore.

A delegation of eight leaders from five dynamic companies across various sectors—including financial services, e-learning, automotive, industrial manufacturing, and software development—recently visited Shanghai to explore data management practices in China in the cross-border context. Nathaniel delivered an insightful presentation on the data management process, covering data collection, categorization, definition, integration, storage, analytics, and security measures. These stages are essential for ensuring effective data governance and compliance with China’s evolving data protection regulations, such as the Personal Information Protection Law (PIPL) and the Data Security Law (DSL).

The recent amendments to China’s Cybersecurity Law, effective January 1, 2025, are part of a broader effort to enhance legal enforcement, align with existing data protection laws, address emerging cyber threats, and strengthen national security. These updates introduce stricter requirements for personal information protection and cross-border data transfers, which are significantly shaping how businesses manage and safeguard data.

Companies operating in China are encouraged to monitor upcoming implementation rules, which will outline penalties for various violations and set technical and procedural requirements for compliance certification. Depending on the severity of non-compliance, penalties may include fines, suspension of operations, or revocation of business licenses.

Even for startups and SMEs handling substantial volumes of data, investing in cybersecurity infrastructure and enhancing risk management strategies is key to mitigating risks while ensuring stable operations in China’s evolving digital landscape.

Following the group session, Vivian conducted a one-on-one discussion with a business leader from Europe’s largest B2B platform for recycled plastics. The focus was on strategic market entry into China, emphasizing the importance of building robust partnerships with local businesses and navigating the complex regulatory environment. Vivian stressed the significance of early preparation and a thorough understanding of both national and local regulations to ensure compliance and avoid potential legal challenges. Her insights highlighted the critical steps required for business growth in China, particularly the importance of strategic foresight in mitigating risks and achieving long-term success.

Reflecting on Dezan Shira & Associates’ commitment to offering tailored consulting services, Vivian shared her insights into doing business in China, covering areas such as corporate establishment, IP and trademark protection, and best practices for operating businesses in a compliant and competitive way. She emphasized the importance of planning ahead and understanding both the national and local regulatory frameworks to facilitate efficient and effective operations.

The delegation expressed sincere appreciation for the expertise and guidance provided by Dezan Shira & Associates. As these startups embark on their journey in the Chinese market, we wish them every success and are confident in their ability to thrive amidst both opportunities and challenges.

Dezan Shira & Associates remains dedicated to strengthening investment ties between Germany and China. With over three decades of experience supporting international investors in Asia, our team is committed to delivering tailored and comprehensive advisory services to meet the unique needs of our clients. We look forward to continuing to facilitate growth and innovation in the region.

About German Accelerator 

German Accelerator empowers German startups to scale globally. It takes high potential companies on a fast-paced learning journey in some of the world’s leading innovation hubs.

Their programs are highly customized to the participants’ individual needs to help them access international markets and succeed quickly. German Accelerator is powered by Start2 Group and proudly financed by the German Federal Ministry for Economic Affairs and Climate Action (BMWK) – it is their belief that investing in startups is directly investing in innovation.

Dezan Shira & Associates’ Presence in Europe 

Amidst Asia’s thriving economic growth and the EU’s active pursuit of trade agreements in key Asian markets, significant investment prospects are emerging for European businesses. Our Munich-based European office, established in 2021, acts as the central hub for European enterprises seeking opportunities across Asia. We work alongside various partners to educate businesses on the economic performance and regulatory environment in developing Asian economies. Connect with our multilingual experts at:

• German Desk: germandesk@dezshira.com
• Italian Desk: italiandesk@dezshira.com
• Spanish Desk: spanishdesk@dezshira.com
• French Desk: frenchdesk@dezshira.com
• UK/Ireland Desk: ireland@dezshira.com

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