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China Passes a Law on Data Privacy Protection Starting From November

China's National People's Congress passed a law to curb and protect online user data privacy. The policy implementation starts in November.

China Passes a Law on Data Privacy Protection Starting From November

China’s National People’s Congress passed a law to curb and protect online user data privacy. The policy implementation starts in November.

The law, called the Personal Information Protection Law (PIPL), was proposed last year signaling an intent by China’s communist leaders. The purpose of the law is to crack down on unscrupulous data collection in the commercial sphere by putting legal restrictions on user data collection.

The national data privacy law, China’s first, closely resembles the world’s most robust framework for online privacy protections. This contains provisions that require any organization or individual handling Chinese citizens’ personal data to minimize data collection and to obtain prior consent.

Governments face more public pressure over data collection in Europe. Beijing is expected to maintain broad access to data.

China has instructed its tech giants to ensure better secure storage of user data, due to public complaints. The complaints were about mismanagement and misuse which have resulted in user privacy violations. The country also places requirements on data processors to obtain consent from individuals. In order to be able to process sensitive types of data. Data such as biometrics, medical and health data, financial information, and location data.

Beijing Cranks up Tech Scrutiny on Data Privacy

China Passes a Law on Data Privacy Protection Starting From November

The PIPL comes as China’s regulatory scrutiny on the country’s technology companies intensifies. With the PIPL, alongside the country’s Cybersecurity Law and Data Security Law, China has beefed up its data regulation.

“The release of the PIPL completes the trifecta of China’s foundational data governance regime, and will usher in a new age of data compliance for tech companies,” said Kendra Schaefer, Beijing-based partner at Trivium China consultancy.

Globally there has been a push to create better rules around data protection. In 2018, the European Union’s landmark General Data Protection Regulation came into effect. That regulation aims to give citizens in the bloc more control over their data.

Beijing has been growing concerned about the amount of data companies are collecting — particularly in the internet sector, and the potential implications of that.

In July, China’s Cyberspace Administration of China (CAC), its top cyberspace regulator, announced it would launch an investigation. This investigation will be into Chinese ride-hailing giant Didi Global Inc (DIDI.N) for allegedly violating user privacy.

On Tuesday, China’s State Administration for Market Regulation (SAMR) passed a sweeping set of rules aimed at improving fair competition. These rules banned the practices of fake online reviews.

China’s technology giants are bracing for further restrictions on data privacy.

Tencent, the owner of the popular WeChat messaging app, warned on Wednesday that further regulations could be coming for the technology industry.

This year, regulators also introduced anti-monopoly rules for the so-called platform economy and regulations on unfair competition in the internet sector.


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