China's data laws increasingly require local storage for certain data types. We help you understand when localization is mandatory, evaluate your options, and implement the most cost-effective compliant architecture.
Not all companies need to localize data in China. Understanding the triggers helps you avoid over-engineering (expensive) or under-engineering (non-compliant).
Must store personal information and important data collected in China domestically.
Sector-specific regulations may require local storage of defined "important data."
If you hit CAC thresholds and want to export data, you must either localize OR pass security assessment.
Some companies choose localization even without legal requirements.
Three main approaches to China data compliance, each with different cost, complexity, and flexibility trade-offs.
Store and process all China-origin data in mainland China data centers. No cross-border transfers.
Local storage for regulated data; global systems for non-sensitive operations. Compliant cross-border transfers where needed.
Minimal local footprint, transfer most data abroad via approved mechanisms (CAC assessment, SCCs, or certification).
We help you find the right balance between compliance, cost, and operational efficiency.
Map all data flows involving China. Classify by sensitivity, regulatory category, and business criticality. Identify what actually needs localization vs. what can stay global.
Analyze your specific obligations based on sector, data types, and volumes. Not everyone needs full localization—we find your actual requirements.
Design a compliant data architecture that minimizes cost while meeting all requirements. Consider cloud providers, data segregation, sync mechanisms, and failover.
Evaluate local cloud providers (Alibaba Cloud, Tencent Cloud, AWS China, Azure China) and help negotiate contracts with compliance-appropriate terms.
Guide technical teams through implementation, ensure proper controls, and validate compliance before go-live.
Regulations evolve. We monitor changes and help you adapt your architecture as requirements shift.
Data localization costs vary dramatically based on your approach. Here's what to budget for:
| Component | Full Local | Hybrid | CAC Route |
|---|---|---|---|
| Infrastructure (annual) | $50K-500K+ | $20K-150K | $5K-30K |
| Implementation (one-time) | $100K-300K | $50K-150K | $30K-80K |
| Regulatory (one-time) | $10K-30K | $30K-80K | $50K-120K |
| Ongoing compliance | $15K-40K/yr | $20K-50K/yr | $25K-60K/yr |
| Timeline | 6-12 months | 4-8 months | 8-14 months |
Many companies over-localize out of caution, spending 2-3x more than necessary. Proper data classification can often reduce your localization footprint—and costs—by 40-60%.
Stop guessing about what needs to stay in China. Get a clear analysis of your requirements and the most cost-effective path to compliance.
Get Strategy Assessment