Illustration: VCG

South China's Guangdong Province announced on Sunday that it will ramp up efforts on data regulation by exploring the establishment of a "Data Customs" to review cross-border data flow and create a big data center in the Guangdong-Hong Kong-Macao Greater Bay Area. The move came as the nation strengthens its regulation on cybersecurity following Didi's fallout.

The provincial government will support the construction of the Guangzhou Nansha (Guangdong-Hong Kong-Macao) Data Cooperation Pilot Zone and the Zhuhai Hengqin Guangdong-Macao Intensive Cooperation Zone, explore the establishment of a "Data Customs", and carry out the review, evaluation and supervision of cross-border data flow, according to a notice released by the authorities of Guangdong on Sunday.

The proposed legislation on data in Shenzhen also includes the construction of a pilot demonstration zone for building socialism with Chinese characteristics, the promotion of capitalization and supervision of data rights and interests, and the standardization of data collection, processing, application and quality management.

A data center for the Greater Bay Area and a data trading market are expected to be established in Shenzhen.

Similarly, Shanghai has been actively promoting data legislation and is working to formally roll out new regulations on  data within this year, local media Shanghai Observer reported on Sunday.

The move by the local governments on data regulation came on the heels of the crackdown by Chinese authorities on data breaches in the sprawling internet sector, which could pose risks to national and public security if crucial data is leaked.

China tightened cybersecurity requirements for Chinese companies with a set of draft rules on Saturday. These include a regulatory review for businesses in China that hold data of 1 million users or more before applying for an IPO overseas.

The announcement came less than a week after a flurry of regulations were imposed on internet platforms over data protection and monopolistic practices.

Other three Chinese internet platforms were put in the crosshairs on July 5, three days after the Chinese cybersecurity regulator announced a review into the country's top ride-hailing platform, Didi Chuxing.