TL;DR: The Cyberspace Administration of China (CAC) is China’s top authority on internet governance, overseeing data privacy, cybersecurity, and platform regulation. It is the primary regulator behind major laws such as the Cybersecurity Law (CSL), Data Security Law (DSL), and Personal Information Protection Law (PIPL). For foreign companies operating in or serving Chinese users, understanding the CAC's role is essential to managing regulatory risk and ensuring platform compliance. The CAC issues laws, conducts security assessments, enforces penalties, and mandates corrective actions when digital operations fall short of legal requirements.

Disclaimer: This guide is intended for informational purposes only and does not constitute legal advice. Chinafy is not a legal or corporate advisory entity. Given that legal obligations vary by business type and context, we recommend consulting with qualified legal counsel for advice specific to your organization. If needed, Chinafy can connect you with one of our experienced legal partners.

What is the CAC?

The Cyberspace Administration of China (CAC), also known as the Office of the Central Cyberspace Affairs Commission, is the chief internet regulator in mainland China. Established in 2014, the CAC is tasked with enforcing and coordinating the country's evolving digital governance framework.

It reports directly to the Central Cyberspace Affairs Commission (CCAC), a high-level policy formulation and implementation body under the Chinese Communist Party (CCP), reflecting the strategic and political importance of internet governance in China.

The CAC leads policymaking and regulatory enforcement across a wide range of digital topics, including:

Cybersecurity and information infrastructure protection

Personal data protection and privacy oversight

Online content supervision and censorship

Cross-border data transfer approvals and security reviews

Algorithmic governance and platform economy regulation

What does the CAC regulate?

The CAC is the lead implementing body for China’s three major data governance laws:

1. Cybersecurity Law (CSL)

Effective since 2017, the CSL governs network security, data localization for Critical Information Infrastructure Operators (CIIOs), and baseline cybersecurity standards.

2. Data Security Law (DSL)

Enacted in 2021, the DSL introduces risk-based classifications for data (e.g., “important data”) and outlines how such data should be stored, transferred, and protected, especially for cross-border scenarios.

3. Personal Information Protection Law (PIPL)

Also enacted in 2021, the PIPL is China’s comprehensive privacy law. It establishes individual rights, defines lawful bases for processing, and places restrictions on automated decision-making (ADM) and cross-border data transfers.

In addition to these, the CAC issues supplementary guidance through administrative measures and draft regulations, including:

Measures for Security Assessment of Cross-Border Data Transfers

Regulations on the Administration of Algorithmic Recommendation Services

Provisions on the Governance of Internet Information Services

Why does the CAC matter to international businesses?

The CAC’s regulatory scope has extraterritorial reach, meaning businesses outside China that handle the personal data of Chinese users may still fall under its jurisdiction.

International businesses need to be aware of CAC oversight if they:

Host or operate platforms accessible from mainland China

Collect or process personal data from Chinese users

Use algorithmic decision-making (ADM) that impacts users in China

Transfer data from China to overseas servers or cloud platforms

Partner with Chinese entities subject to data classification rules

Understanding CAC enforcement priorities helps avoid operational disruptions, reputational harm, or penalties that could arise from non-compliance.

How does the CAC enforce compliance?

The CAC has both regulatory and enforcement powers. These include:

Conducting cybersecurity and data transfer reviews

Requiring security assessments for cross-border data flows

Ordering rectification or suspension of digital services like in 2024, the CAC issued warnings or fines to 4,046 platforms, ordered 585 websites to suspend certain functions or updates, and removed 200 mobile Apps and 40 mini-programs.

Issuing administrative fines for violations of CSL, DSL, or PIPL

It often coordinates with sectoral regulators such as the Ministry of Industry and Information Technology (MIIT), the Ministry of Public Security (MPS), and the State Administration for Market Regulation (SAMR).

Recent CAC actions have targeted:

Apps that allegedly excessive personal data

Platforms perceived as lacking transparent algorithms

Companies exporting large volumes of user data without the requisite approval

What are the implications for platform operations in China?

For international digital platforms, CAC oversight introduces a number of operational considerations:

Localization and data governance

Companies may need to localize servers or adopt hybrid cloud models to minimize cross-border data dependencies.

Consent and user rights

Platforms should ensure that privacy policies, consent mechanisms, and opt-outs meet PIPL standards, including transparency around ADM. Keep in mind the language used for these policies as well to be inclusive of the audience you have in mind (e.g. simplified Chinese).

Algorithm and content management

Not so unlike privacy laws elsewhere in the world, platforms using recommendation systems should register their algorithms and provide users with visibility and control over personalization. Keep in mind content differentiation and personalization for specific markets outside of which they operate may be even illegal for certain industries.

Legal representation and filing

In some cases, foreign businesses should designate a local representative and submit data impact assessments or filing documentation with CAC authorities.

Proactively aligning with CAC requirements can reduce regulatory risk and demonstrate trustworthiness to Chinese users, partners, and regulators.

Chinafy collaborates with specialized partners, such as Lianwei Pancloud and MS Advisory who can offer insight into regulatory trends and compliance considerations.

Get in touch with Chinafy today to better understand the next steps for your company’s website and data in China.