Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

China passes one of the world’s strictest data-privacy laws

China passes one of the world’s strictest data-privacy laws

China has approved a sweeping privacy law that will curb data collection by technology companies, but that policy analysts say is unlikely to limit the state’s widespread use of surveillance.

China’s top legislative body, the Standing Committee of the National People’s Congress, passed the Personal Information Protection Law at a meeting in Beijing on Friday, according to the state-run Xinhua News Agency.

The law will take effect Nov. 1, Xinhua said. The full text of the final version wasn’t released upon passage.

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

However, unlike in Europe, where governments face more public pressure over data collection, Beijing is expected to maintain broad access to data.

Though the new privacy rules could allow China’s central government to control how lower-level agencies use and share data, nothing suggests "anything resembling legal limits on government surveillance," said Karman Lucero, a fellow at the Yale Law School Paul Tsai China Center.

"Chinese civil society still has very limited means of ‘watching the watchmen,’ " he added.

China’s new privacy framework comes as frustration grows within the government and in Chinese society over online fraud, data theft and data collection by domestic technology giants. For years, loose rules on accessing data allowed domestic companies to quickly develop and adopt new products and technology, but also fueled a black market for consumer data.

The new privacy law is part of a tighter regulatory regime for Chinese tech companies. Over the past year, Beijing has clamped down on the tech sector on matters including data security and anticompetitive practices, for example imposing a multibillion-dollar fine on Alibaba Group Holding Ltd. for forcing vendors to sell exclusively on its e-commerce platform—a practice that used to be par for the course in China’s winner-takes-all market.

After several years in which tech companies largely had free rein to access consumer data, the new privacy law is a "sign of the market maturing," said Neil Liang, co-founder of The CareVoice, a Shanghai-based tech startup, who has been following changes in the regulatory landscape for tech companies’ user data policies.

Costs will likely increase, as tech companies must dedicate more resources to compliance, similar to what his firm had to do to adapt to Europe’s GDPR framework a few years ago, said Mr. Liang.

Chinese President Xi Jinping in a March 2020 file photo. China’s new privacy law, which unifies previously piecemeal legislation on personal information protection, also tackles a number of concerns that have come to light in recent years, such as th


But the new rules could also provide new opportunities for third parties who help companies with data management, he added.

China’s new privacy law, which unifies previously piecemeal legislation on personal information protection, also tackles a number of concerns that have come to light in recent years, such as the proliferation of facial recognition.

In urban residential compounds around China, where cameras equipped with facial-recognition technology are used to verify residents and visitors, complaints from tenants have spurred local governments to take action, such as banning the collection of biometric data without consent. Last month, China’s highest court instructed building managers to offer alternatives for residents who don’t want to submit to facial recognition.

According to the latest draft of China’s privacy law, facial recognition cameras installed in public places must be marked with prominent alerts and only be used to maintain public security.

The new law will also seek to address the issue of algorithmic discrimination, which has drawn increasing public concern, especially in cases where online platforms offer different prices to different users based on their online behavior.

The latest draft, which requires automated decision-making to be transparent and fair, also instructs companies to give individuals the option to opt-out of personalized marketing.

Violating the new privacy law could come at a high cost for companies. Illegal activities that are considered serious could result in a fine of up to $7.7 million, or up to 5% of the preceding year’s business income, according to the law’s latest draft.

If companies are compliant with Europe’s GDPR, "they are going to be fine complying with the Chinese privacy law," said Alexa Lee, senior manager of policy at the Information Technology Industry Council, a Washington-based trade association of high-tech companies.

But national security-related provisions in the law, such as one enabling the blacklisting of overseas data handlers who endanger China’s national security or public interest, could be driven by considerations unrelated to privacy, such as U.S.-China relations, she said. "That is an area companies can’t predict and they cannot control."

Separately, Chinese regulators on Friday also published new rules requiring companies that process auto data to enhance data security and protect personal information collected from vehicles. The rules require important data, including sensitive military and government locations, to be stored in China, and also set principles for reducing unnecessary collection and sharing of data.

The new rules on auto data, published by five Chinese ministries led by China’s cyberspace authority, will take effect on Oct. 1.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
White House Announces No Imminent Summit Between Trump and Putin
China Presses Netherlands to “properly” Resolve the Nexperia Seizure as Supply Chain Risks Grow
Merz Attacks Migrants, Sparks Uproar, and Refuses to Apologize: “Ask Your Daughters”
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
×