PIPL
China's comprehensive law for personal information protection
TISAX
Automotive standard for trusted information security assessments
Quick Verdict
PIPL mandates personal data protection for China operations with heavy fines, while TISAX is a voluntary automotive security assessment enabling supply chain trust. Companies adopt PIPL for legal compliance and market access; TISAX for OEM contracts and resilience.
PIPL
China's Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial scope for foreign processors targeting China
- Explicit separate consent for sensitive personal information
- Cross-border transfers via SCCs, certification, security reviews
- No broad legitimate interests; consent-centric legal bases
- Fines up to 5% annual revenue or RMB 50 million
TISAX
Trusted Information Security Assessment Exchange (TISAX)
Key Features
- Standardized assessments exchanged via ENX Portal
- Three risk-based levels: AL1 to AL3 audits
- Automotive-specific prototype protection modules
- 70+ VDA ISA controls on ISO 27001 base
- Three-year labels with no annual surveillance
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, effective November 1, 2021, governing collection, processing, storage, transfer, and deletion of personal information. It applies to domestic and foreign organizations handling data of individuals in China, using a risk-based approach with strict consent and minimization principles, modeled partly on GDPR but with national security emphasis.
Key Components
- Eight chapters, 74 articles covering processing rules, cross-border transfers, individual rights, handler obligations.
- Core principles: lawfulness, necessity, minimization, transparency, accountability.
- Sensitive personal information (SPI) rules, automated decision-making restrictions, data subject rights (access, deletion, portability).
- Compliance via internal governance, PIPIAs, no certification but CAC enforcement.
Why Organizations Use It
PIPL is mandatory for China-exposed entities, avoiding fines up to 5% revenue. It enables market access, builds consumer trust, reduces breach risks, supports cross-border operations via SCCs/security reviews.
Implementation Overview
Phased: gap analysis, data mapping, policies, controls, monitoring (6-12 months). Applies universally by size/industry/geography; requires DPOs for large handlers, local representatives for foreigners, ongoing audits.
TISAX Details
What It Is
TISAX (Trusted Information Security Assessment Exchange) is an industry framework developed by the ENX Association, based on the VDA ISA catalog, for standardizing information security assessments in the automotive supply chain. It verifies protection of sensitive data like IP, prototypes, and personal information using risk-based assessments at three levels: Basic (self), Significant, and Very High.
Key Components
- Over 70 controls across 7 groups: Policy, Organization, Personnel, Physical Security, Access, Cryptography, Operations.
- Built on ISO 27001 with automotive extensions like prototype protection.
- Modular objectives for information security, data protection, prototypes.
- Labels exchanged via ENX portal, valid 3 years.
Why Organizations Use It
- Contractual mandates from OEMs (e.g., BMW, Volkswagen) prevent revenue loss.
- Reduces duplicate audits by 70-90%, enables market access.
- Mitigates cyber risks, builds supply chain trust.
- Delivers ROI via efficiency, resilience, competitive edge.
Implementation Overview
Phased: gap analysis, remediation, audits (6-18 months). Targets Tier 1/2 suppliers, service providers; scalable for SMEs to globals. Requires accredited providers for higher levels.
Key Differences
| Aspect | PIPL | TISAX |
|---|---|---|
| Scope | Personal data protection, processing, transfers | Information security, prototype protection |
| Industry | All sectors, China-focused, extraterritorial | Automotive supply chain, global |
| Nature | Mandatory national law, fines enforced | Voluntary industry assessment, contractual |
| Testing | Self-assessments, DPIAs, CAC reviews | Audits AL1-AL3, ENX providers |
| Penalties | Fines to 5% revenue, suspensions | Contract loss, no legal fines |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and TISAX
PIPL FAQ
TISAX FAQ
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