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Set up a Chinese Legal Entity on a Dynamics 365 Finance on European tenant

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In the hypothesis that I setup a cloud Dynamics 365 Finance on an European tenant, are there any restriction from the China Government to make business with a Chinese Legal Entity created in my D365?

Are there also any restriction about user data management for CRM?

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MATTGUO 22,349 Moderator on at

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Hi Fabrizio,

As far as i know, Chinese legal has no restriction on the location of the ERP servers.

But the Chinese network security law forbids transferring the personal data, and that also depend on the business you want to do, suggest contact the Chinese legal counsel and accounting firm.

Network delay should be the first issue if the server is in Europe.

The CRM is also same as ERP.

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Ludwig Reinhard Microsoft Employee on at

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Hello Fabrizio,

My understanding is a bit different.

Can you please have a look at the following website that describes the different deployment options for China:

docs.microsoft.com/.../china-local-deployment

Many thanks and best regards,

Ludwig

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Community Member on at

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Hi Ludwig,

I just read your mentioned article and the involvement of 21Vianet is out of my options.

The question is: which kind of business can I run in China with a D365 in an European tenant? Can I do, for instance, a B2C where the customer is Chinese and also the delivery address is in China?

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Ludwig Reinhard Microsoft Employee on at

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Hi Fabrizio,

How do you plan to follow the local legal regulations e.g. when creating invoices?

Do you have an external accountant/auditor in China who is doing all the local Chinese accounting and reporting for you or what is your plan to realize this?

Best regards,

Ludwig

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Community Member on at

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Hi Ludwing,

for the accounting we will use a local partner, but the main question is: can I manage Chinese personal customers data in an D365 "running in an European cloud"? Is there any reference about this?

Best regards,

Fab

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André Arnaud de Cal... 300,915 Super User 2025 Season 2 on at

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Hi Fab,

I do undestand that you have an European company who wants to do business with a Chinese customer?

China has a data protection regulation which is described here: (CDPR) www.chinalawblog.com/.../china-data-protection-regulations-cdpr.html.

I do think the best you can do is contact Chinese authorities for your question.

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