In an uncharacteristic looking move for end-user privacy and choice, China has passed sweeping new legislation entitled the Personal Information Protection Law. It’s set to take effect on November 1, 2021, and includes provisions governing consent in user data collection of tech applications and specifies how companies can use that data, especially if that data is to be transferred out of China.
This is the second of two pieces of legislation to emerge this year as China takes a hard look at their cyberspace and try their hand at oversight.
The Data Security law, which came into effect on Sept. 1, set classification frameworks for data based on “its economic value and relevance to China’s national security” as cited in Reuters.
According to experts, both laws will require companies to reevaluate how they collect and store data on a massive scale. As regulations continue to develop rapidly during China’s re-examination of their tech industry, companies are scrambling to meet the stringent new requirements and adjust their infrastructure for compliance at a break-neck pace.
- The Personal Information Protection Law similar in design to Europe’s General Data Protection Regulation
- China’s top cyberspace regulator, Cyberspace Administration of China (CAC), issued an investigation into Didi Global Inc, their version of Uber, with accusations of user privacy violations
- An extensive set of rules targeting business practices that undermine fair competition, such as cultivating reviews, were implemented by China’s State Administration for Market Regulation (SAMR)
- 43 apps were accused of illegally transferring user data and called out by the Ministry of Industry and Information Technology and required to make “rectifications”
Similar cyberspace scrutiny is happening in the US regarding monopolies held by some of the biggest players in tech like Google, Facebook, and Amazon but is moving very slowly through the legislative process.
In terms of how this impacts Americans, TikTok is currently one of the single most downloaded apps in the US and owned by Beijing-based company ByteDance. According to The Sun, ByteDance is now the most valuable startup in the world with an estimated value of 1 billion USD.
Many doubt that China actually cares about privacy, but some believe that keeping up the appearance of playing by modern corporate rules benefits their government as they seek global dominance.