China’s New Personal Information Audit: A Compliance Guide

How is the media, technology and telecoms sector regulated in China?

China regulates media, technology and telecoms through a vertically integrated, state-centric model built around licensing, security reviews and data control. Operators must combine sector licences with strict data and cybersecurity compliance, and regulators have wide powers to investigate and sanction.

The system is not purely sectoral or purely horizontal. A streaming platform, cloud provider or app operator typically sits at the intersection of several regulatory tracks: telecoms/licensing, content control, data and cybersecurity, and competition/consumer protection.

• Media: Broadcast, online audio-video, news and publishing are politically sensitive and tightly controlled, with foreign participation heavily restricted.
• Technology: Internet platforms, cloud, AI, algorithms and app distribution are supervised for data, competition, algorithmic transparency and content.
• Telecoms: Basic telecoms are dominated by state-owned carriers; value-added telecoms services (VATS) cover most commercial internet businesses and require MIIT licences.

What are the main laws and regulators for media, technology and telecoms in China?

Media, technology and telecoms in China are governed by a cluster of national framework laws plus detailed sector measures. The most impactful for international businesses are the Cybersecurity Law, Data Security Law, PIPL and telecoms/content licensing rules administered by MIIT, CAC and NRTA.

For any digital or communications business, you should map your activities against at least these pillars before investing or scaling operations.

Core national framework laws

• Cybersecurity Law (CSL): Establishes network operator duties, security grading, CII concept and some localization obligations.
• Data Security Law (DSL): Introduces data classification, "important data" concept and national security review of certain data activities.
• Personal Information Protection Law (PIPL): China's main data protection law, similar in structure to GDPR but more state-centric in enforcement.
• Anti-Monopoly Law, Anti-Unfair Competition Law: Used aggressively against large platforms and abusive data or algorithmic practices.

Key sector regulators

• CAC (Cyberspace Administration of China): Leads data and cybersecurity regulation for online services, content and cross-border data transfers; central player for PIPL enforcement and the 2025 Audit Measures.
• MIIT (Ministry of Industry and Information Technology): Regulates telecoms services, internet information services and network/device standards; issues VATS licences and ICP filings.
• NRTA (National Radio and Television Administration): Oversees traditional and online audio-visual content, broadcasting and streaming licences.
• MPS (Ministry of Public Security): Handles criminal investigations, network and system security enforcement.
• SAMR (State Administration for Market Regulation): Leads on competition, advertising, pricing and some platform rules.

Key data and platform regulations affecting MTT

• PIPL implementing regulations and sector guidelines, including rules on children's data and facial recognition.
• Cross-border data transfer regimes, including standard contracts, security assessments and certification paths.
• Rules on algorithmic recommendation services and generative AI, targeting content curation, transparency and abuse control.
• The Administrative Measures for Personal Information Protection Compliance Audits (effective May 2025), adding a mandatory audit framework for larger data processors.

How do the 2025 personal information protection compliance audit rules apply to your business?

The 2025 Administrative Measures for Personal Information Protection Compliance Audits apply to any company processing personal information in China, with stricter requirements for entities handling data of over 1 million users. All covered companies must conduct regular compliance audits covering consent, retention and third-party sharing, but larger platforms are subject to more formal and independent audit expectations.

Your first step is to assess whether you cross or are close to the 1 million user threshold, and then decide whether you can rely on structured self-audits or need to retain accredited third-party auditors.

Key characteristics of the Audit Measures regime

• Mandatory audits: Audits are not optional if you fall within the Measures; they are part of PIPL compliance similar to security assessments and DPIAs.
• Risk-based: Processing volume (user numbers) and sensitivity of data drive expectations around audit depth and independence.
• Integration with PIPL: Audit findings link directly to PIPL obligations on lawful basis, transparency, security measures and cross-border transfers.
• Documentation-focused: CAC pays close attention to written policies, logs of consent and withdrawals, retention schedules and contracts with processors and recipients.

What additional obligations apply if you process personal data of more than 1 million users?

If you process personal information of over 1 million users, you are treated as a large processor and must conduct regular, comprehensive audits, typically involving independent third-party experts. You must document audit methodology, address non-compliance with clear remediation plans and be prepared to share reports or summaries with CAC or other regulators.

Many platform operators treat this as part of a broader governance program, integrating it with internal control cycles and cybersecurity reviews.

1. Audit planning and governance

• Appoint a data protection lead or team responsible for coordinating audits across business units.
• Create a multi-year audit plan that covers all major systems, products and subsidiaries processing Chinese personal information.
• Align audit cycles with internal audit, SOX-type controls (for listed entities) and information security frameworks (ISO 27001, etc.).

2. Third-party professional audit requirements

• Large processors are generally expected to engage independent professional auditors with demonstrable PIPL and cybersecurity expertise.
• Auditors usually combine legal and technical skills: reviewing policies and contracts, but also testing systems, logs and real user journeys.
• Where the same audit firm conducts broader IT or financial audits, you should ensure clear PIPL-specific scopes and avoid conflicts of interest.

3. Internal controls expected at >1 million user scale

• Formal data inventory and mapping across systems, including structured and unstructured data.
• Robust consent and preference management tools for web, app and offline collection.
• Automated or semi-automated retention and deletion workflows with audit trails.
• Centralized third-party risk management to control sharing and outsourcing, with standardized PIPL clauses.
• Systematic procedures for data subject requests, incident response and regulator engagement.

4. Typical cost range for large-processor audits in China

Costs vary widely based on complexity, number of systems and whether you combine the PIPL audit with broader cybersecurity assessments.

What audit and compliance steps should smaller entities in China follow?

Smaller entities under the 1 million user threshold can usually conduct internal self-audits, but they must still meet the substantive requirements under PIPL and the Audit Measures. A lightweight audit that only checks policies on paper will not satisfy regulators if your actual data flows diverge from what you document.

The practical goal is to implement a repeatable, well-documented process that is proportionate to your scale but defensible during an inspection.

Practical self-audit roadmap for smaller entities

1. Assemble a cross-functional team
   • Include representatives from legal/compliance, IT, product and operations.
   • Assign a coordinator to maintain the audit file and follow up on remediation.
2. Map your data and systems
   • Identify where you collect personal information: websites, apps, CRM, HR, CCTV, marketing tools.
   • Document categories of data, purposes, processing activities and any transfers to vendors or affiliates.
3. Review your legal bases and consent
   • Check whether each processing purpose has a lawful basis under PIPL (consent, contract, legal obligation, etc.).
   • Verify that consent interfaces are clear, granular and not bundled in a way regulators dislike.
4. Assess retention and deletion practices
   • Identify whether retention periods are defined and actually implemented in systems.
   • Test deletion in at least a sample system and record the results.
5. Review third-party sharing and contracts
   • List all vendors and partners that receive personal information.
   • Check whether contracts contain PIPL-compliant clauses on purpose, security, sub-processing and breach notification.
6. Document gaps and remediation plan
   • Classify gaps as high, medium or low risk.
   • Assign owners and deadlines; track completion in an auditable format.

When should smaller entities involve external experts?

• If you operate in high-risk sectors (finance, healthcare, children, facial recognition) regardless of user volume.
• If you plan significant cross-border data transfers or rely on complex cloud architectures.
• If you are preparing for investment, listing, or M&A where buyers will scrutinize PIPL compliance.

What must a China personal information compliance audit cover in practice?

A PIPL compliance audit in China must assess your entire personal information lifecycle, with special focus on consent mechanisms, data retention and third-party sharing. Auditors will cross-check policies, user-facing interfaces, contracts and technical logs to confirm that what you declare matches how systems actually behave.

Failure in any of these three focus areas is a common driver of enforcement, reputational damage and rectification orders.

1. Consent mechanisms

• Transparency: Privacy notices must be clear, prominent, in Chinese, and specify purposes, categories of data, sharing, retention and contact details.
• Granularity: Separate consent for different purposes such as marketing, profiling, sharing with partners and use of sensitive personal information.
• Freely given: Avoid tying non-essential data collection to core service access; use separate opt-in for value-added features.
• Record-keeping: Maintain logs of when and how consent was obtained, modified or withdrawn, linking to user IDs or device identifiers.
• Interface testing: Auditors will often walk through real app flows to ensure no dark patterns or pre-ticked checkboxes exist.

2. Data retention periods

• Defined schedules: Each category of personal information should have a documented retention period tied to business and legal needs.
• System configuration: Schedules must be reflected in database settings, archival rules or batch job scripts, not only on paper.
• Deletion and anonymization: Clear standards for when data is deleted vs anonymized, and how anonymization is implemented.
• Backups and logs: Treatment of personal data in backups and log files is frequently overlooked; auditors will ask.
• Evidence: Produce audit logs or reports showing deletions actually executed for a sample period or user set.

3. Third-party sharing

• Data sharing inventory: A current list of all third parties receiving personal information, including cloud providers, analytics tools, marketing partners and group companies.
• Purpose limitation: Each sharing arrangement must have a clear documented purpose consistent with user notices and consent.
• Contracts and clauses: Written agreements should allocate roles (controller vs processor), define security measures and set audit/inspection rights.
• Cross-border transfers: Where data is exported out of China, ensure the chosen compliance path (standard contracts, security assessment, certification) matches your data volume and sensitivity.
• Oversight and monitoring: Procedures for onboarding, periodic review and offboarding of vendors, including incident handling and data return/destruction.

4. Additional standard PIPL audit elements

• Organizational structure and policies for data protection.
• Technical and organizational security measures (access control, encryption, logging).
• Data subject rights handling (access, correction, deletion, portability, objection).
• Incident response and breach notification readiness.
• Training and awareness for staff and contractors.

What licensing and filing requirements affect media, tech and telecoms operators in China?

Most MTT businesses in China need one or more telecoms or content licences in addition to company registration. Operating without the right MIIT or NRTA licence can lead to shutdowns, fines and difficulty monetizing services with major partners.

You should identify at the planning stage whether your model falls into VATS, online audio-video, online news or other regulated categories.

Common licences and filings

Practical licensing tips

• Use a gap analysis to compare your planned services with licence scopes and typical regulator interpretations.
• Consider structuring options (e.g. partnering with a licensed local entity) where direct licensing is restricted or not realistic for foreign investors.
• Build licensing timelines of at least 6-12 months into market entry plans, especially for content-heavy services.

How do data localization and cross-border transfer rules impact MTT companies in China?

Data localization and cross-border transfer rules heavily influence architecture, vendor choice and group data strategies for MTT companies in China. Personal information and important data collected in China are often required to be stored domestically, and exports must pass through specified legal mechanisms.

MTT operators with global platforms usually adopt a "China stack" with localized hosting, separate data management and controlled interfaces to global systems.

Key localization and export obligations

• Domestic storage of personal information and important data gathered by critical information infrastructure operators and, in practice, many major platforms.
• Export mechanisms for personal information:
  • Security assessment by CAC for high-volume or sensitive transfers.
  • Standard contracts for cross-border transfers for many routine exports.
  • Certification by approved institutions in some sectors.
• Contractual alignment between China subsidiaries, HQ and external vendors to reflect chosen export paths.

Strategic implications for architecture and vendors

• Evaluate whether to host user-facing services on China-based cloud infrastructure (local or JVs of global providers).
• Implement data minimization in outbound flows: export only what is needed for clear, disclosed purposes.
• Maintain a cross-border data transfer register including destinations, recipients, categories of data and legal bases.
• Coordinate PIPL export compliance with your global data governance program to avoid inconsistent positions across jurisdictions.

What are the main enforcement risks, penalties and typical regulator actions?

Enforcement in China's MTT sector is active and often high profile, combining administrative penalties, rectification orders and reputational impact. For serious PIPL and data breaches, regulators can impose fines up to 5 percent of annual turnover in the previous year and, in severe cases, suspend or shut down services.

Practically, many cases result first in rectification orders, on-site inspections and public notices, which can still be damaging to brand and investor confidence.

Common triggers for investigations

• Large-scale data breaches or leaks reported in media or social networks.
• High-profile consumer complaints about intrusive data collection or misuse of consent.
• Regulator thematic campaigns targeting apps, live-streaming, minors' protection or algorithmic practices.
• Signals discovered in licensing or periodic inspections by MIIT, CAC, NRTA or MPS.

Penalty range and non-monetary consequences

• Fines: For PIPL, up to RMB 50 million or 5 percent of last year's turnover for the most serious breaches; lower but still material amounts for lesser violations.
• Service suspensions: Temporarily removing apps from stores, suspending certain data processing activities, or ordering business model changes.
• Rectification orders: Mandatory timelines to fix issues, with follow-up inspections.
• Credit and reputation: Public naming, inclusion in "bad credit" systems, and heightened scrutiny for future approvals.
• Personal liability: Responsible individuals can face administrative sanctions and, in extreme cases, criminal exposure.

When should you hire a lawyer or external expert for China media, technology and telecoms issues?

You should involve China-experienced lawyers and technical experts when your business model touches regulated content or telecoms services, or when your data footprint approaches the 1 million user threshold. External support is also critical for cross-border data transfers, complex platform ecosystems and any regulatory investigation or enforcement contact.

Timely specialist input usually reduces long-term costs by preventing missteps in licensing, architecture and public-facing practices.

Scenarios where expert help is strongly recommended

• Market entry or major pivot into China-facing media, streaming, social, cloud, fintech or adtech services.
• Structuring VATS, ICP or content licences, especially where foreign investment restrictions apply.
• Audit Measures compliance for companies at or above 1 million users, or with high-risk data categories.
• Designing consent, retention and sharing frameworks that meet PIPL while remaining commercially viable.
• Preparing for or responding to inspections by CAC, MIIT, NRTA, MPS or SAMR.
• M&A, fundraising or IPOs, where buyers, underwriters and exchanges now expect a clear PIPL compliance narrative.

What kind of experts do you need?

• Regulatory counsel for interpreting laws, managing regulator dialogue and drafting key policies and contracts.
• Technical security and privacy engineers for system-level controls, logging, retention automation and incident response.
• Specialist auditors familiar with the 2025 Audit Measures to design and execute PIPL audit programs and reporting.

What are the practical next steps for in-house and compliance teams operating in China?

In-house and compliance teams should first confirm their regulatory perimeter, then build a concrete roadmap for audits, licensing and technical controls. Focus on quick wins that reduce enforcement risk, while planning for sustainable governance and documentation.

A structured, prioritized action list will help you demonstrate seriousness to regulators, management and investors.

1. Confirm your regulatory footprint
   • Identify whether you hold or require MIIT/NRTA/CAC licences or filings.
   • Quantify your China user base and confirm whether you exceed or may soon exceed 1 million users.
   • Inventory cross-border data flows and high-risk data types (minors, financial, health, biometric).
2. Design your Audit Measures strategy
   • For >1 million users: shortlist qualified third-party auditors, plan budget and timelines, and align with internal audit calendars.
   • For <=1 million users: build a repeatable self-audit framework using checklists and templates, with periodic external review as needed.
3. Fix consent, retention and sharing foundations
   • Review and, where necessary, redesign consent flows in apps, websites and offline collection points.
   • Implement or refine retention schedules and automate deletion where possible.
   • Standardize contracts and onboarding for vendors and partners receiving personal information.
4. Strengthen governance and documentation
   • Establish a China data governance committee or working group with clear reporting lines.
   • Maintain an audit-ready file with policies, DPIAs, audit reports, training records and remediation logs.
   • Roll out targeted training for product, marketing and engineering teams on China-specific rules.
5. Prepare for regulator interaction
   • Draft playbooks for responding to inspections, information requests and incident notifications.
   • Assign spokespeople and escalation paths, including external counsel contacts.

Taking these steps will position your media, technology or telecoms business to operate more confidently in China, align with the 2025 Audit Measures and PIPL, and manage both regulatory and commercial expectations in a fast-moving environment.