PIPL
China's comprehensive law protecting personal information rights
AEO
International framework for supply chain security partnerships
Quick Verdict
PIPL mandates data privacy compliance for China operations with heavy fines, while AEO is voluntary certification granting trade facilitation for secure supply chains. Companies adopt PIPL to avoid penalties and access markets; AEO for faster customs clearance and competitive edge.
PIPL
Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial reach for foreign processors targeting China
- Consent-first processing without legitimate interests basis
- Strict cross-border transfers via security reviews or SCCs
- Fines up to 5% of annual global revenue
- Explicit consent required for sensitive personal information
AEO
Authorized Economic Operator (AEO)
Key Features
- Risk-based supply chain security controls
- Customs compliance history verification
- Financial viability and solvency checks
- Records management and audit trails
- Mutual Recognition Arrangements (MRAs)
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
PIPL Details
What It Is
PIPL (Personal Information Protection Law) is China's comprehensive national regulation enacted in 2021, effective November 1. It governs collection, processing, storage, transfer, and deletion of personal information with extraterritorial scope. Modeled partly on GDPR, it uses a risk-based approach emphasizing consent, minimization, and national security.
Key Components
- Eight chapters, 74 articles covering processing rules, cross-border transfers, individual rights, handler obligations.
- Core principles: lawfulness, necessity, minimization, transparency, accountability.
- Sensitive PI (biometrics, health, minors <14) requires explicit consent.
- Compliance via security assessments, SCCs, certifications; no broad legitimate interests basis.
Why Organizations Use It
Mandatory for entities handling Chinese residents' data; enables market access, builds trust. Mitigates fines up to 5% revenue, operational disruptions. Enhances resilience, competitive edge in China's digital economy.
Implementation Overview
Phased: gap analysis, data mapping, policies, controls, audits (6-12 months). Applies to multinationals, domestic firms; requires PIPO, China representative for foreigners. No formal certification but CAC enforcement.
AEO Details
What It Is
Authorized Economic Operator (AEO) is a voluntary certification program under the WCO SAFE Framework, recognizing low-risk businesses in international trade. Its primary purpose is to secure supply chains while facilitating trade through risk-based partnerships between customs and compliant operators. Scope covers all supply chain actors like importers, exporters, and logistics providers.
Key Components
- Four pillars: customs compliance, records management/internal controls, financial viability, and supply chain security.
- 13 criteria (A-M) in WCO SAQ, including cargo security, personnel vetting, and crisis management.
- Built on SAFE Framework Pillar 2; involves self-assessment, validation, and mutual recognition.
Why Organizations Use It
- Trade facilitation: fewer inspections, priority clearance, cost savings.
- Strategic: MRAs enable cross-border benefits; enhances reputation.
- Risk reduction: focuses enforcement on high-risk trade.
Implementation Overview
- Gap analysis, SAQ completion, site validation, ongoing monitoring.
- Applies globally to supply chain firms; 6-12 months typical; requires audits and continuous compliance.
Key Differences
| Aspect | PIPL | AEO |
|---|---|---|
| Scope | Personal data protection, processing, transfers | Customs compliance, supply chain security |
| Industry | All sectors handling Chinese personal data | Trade, logistics, supply chain operators |
| Nature | Mandatory national privacy law | Voluntary customs certification program |
| Testing | CAC security reviews, DPIAs, audits | Customs validation, site audits, re-assessments |
| Penalties | Fines to 5% revenue, business suspension | Status revocation, loss of facilitation benefits |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and AEO
PIPL FAQ
AEO FAQ
You Might also be Interested in These Articles...
What if the EU would not have made GDPR mandatory...
Explore a world without mandatory GDPR: How would organizations manage data? What data privacy regs would emerge? Uncover impacts on businesses and privacy laws
CMMC Level 3 Implementation Guide: Integrating NIST SP 800-172 Enhanced Controls for APT Defense
Step-by-step CMMC Level 3 guide for DIB contractors. Implement 24 NIST SP 800-172 controls on Level 2. Prep for DIBCAC, C3PAO scoping & 180-day POA&Ms. Boost cy
CIS Controls v8.1 for Cloud & Kubernetes: A Practical Implementation Playbook (AWS/Azure/GCP + IaC)
Translate CIS Controls v8.1 to cloud-native: Kubernetes patterns for IAM, logging, vuln mgmt, hardening on AWS, Azure, GCP + IaC. Practical playbook for teams.
Run Maturity Assessments with GRADUM
Transform your compliance journey with our AI-powered assessment platform
Assess your organization's maturity across multiple standards and regulations including ISO 27001, DORA, NIS2, NIST, GDPR, and hundreds more. Get actionable insights and track your progress with collaborative, AI-powered evaluations.
Check out these other Gradum.io Standards Comparison Pages
APPI vs ENERGY STAR
Compare APPI vs ENERGY STAR: Japan's privacy law meets U.S. efficiency cert. Decode compliance, risks, ROI, and phased strategies for global ops success.
ITIL vs HIPAA
ITIL vs HIPAA: Compare ITIL's ITSM best practices with HIPAA's health data rules. Align frameworks for compliant, efficient IT ops, risk management & value-driven services now.
ISO 20000 vs IATF 16949
Discover ISO 20000 vs IATF 16949: IT service management meets automotive quality standards. Compare HLS alignment, core tools, and benefits for integrated compliance. Explore now!