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Sun stressed that the memorandum signed between the city and the Cyberspace Administration of China (CAC) in June mainly targeted data flowing from mainland locations within the bay area to Hong Kong. He added that the city’s goal was to help Beijing make Hong Kong a global information hub and to lower the threshold for data leaving its soil.

He said that Hong Kong was working with the CAC to establish a standard contract to allow for free data flows from mainland China. The agreement would be implemented gradually over the next few months. It is aimed at promoting Hong Kong as an international hub for financial technology and data analytics, he added. “In the past, it was difficult to transfer data from mainland China,” he said. “But now it is easy.”

Big tech companies such as Facebook Inc., Twitter Inc. and Alphabet Inc’s Google have privately warned the Hong Kong government that they might pull their services from the territory if authorities move forward with plans to change data-protection laws in a way that makes them liable for the malicious sharing of individuals’ private information online. They have also urged the government to adopt measures that will protect their customers and promote their business.

The Hong Kong government has a number of options to deal with the issue, including stricter enforcement and imposing fines on offenders. But critics say it could be easier to prevent data breaches if the law allowed more control over personal information and better security practices.

HK’s telecommunications market is among the most liberal in Asia, with consumers able to choose from a wide range of service providers. This competition has helped keep prices low, a situation that is expected to continue in the near future. Nevertheless, regulators are keeping an eye on the industry and have the power to introduce new rules if necessary.

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