China passes new personal data privacy law coming into effect on November 1st

File Photo: The Chinese flag will be seen on April 29, 2020 in Beijing, China.Reuters / Thomas Peter

August 20, 2021

By Josh Horwitz

Shanghai (Reuters)-Friday’s National People’s Congress in China has officially passed a law aimed at protecting the privacy of online user data and will implement the policy from November 1.

The enactment of the law is expected to complete another pillar of the country’s efforts to regulate cyberspace and further increase compliance requirements for domestic businesses.

China has instructed tech giants to ensure more secure storage of user data in common complaints about mismanagement and misuse that have led to user privacy breaches.

The law states that the handling of personal information must have a clear and rational purpose and is limited to “the minimum range necessary to achieve the handling goals”.

It also describes the conditions under which a company can collect personal data, such as obtaining personal consent, and guidelines for ensuring data protection when data is transferred abroad.

The law also requires the handler of personal information to appoint a person responsible for the protection of personal information, and also requires the handler to carry out regular audits to ensure compliance with the law.

The second draft of the Personal Information Protection Law was published in late April.

The Personal Information Protection Act, along with the Data Security Act, sets out two major regulations set to control the Internet in China in the future.

The Data Security Act, which will come into force on September 1, sets up a framework for businesses to classify data based on its economic value and its relevance to China’s national security.

The Personal Information Protection Act, on the other hand, recalls the European GDPR in setting up frameworks to ensure user privacy.

According to experts, both laws require Chinese companies to examine data storage and processing practices to ensure they comply.

The law came amid tightening regulations on the industry from Chinese regulators, which have upset large and small businesses.

In July, China’s top cyberspace regulator, China’s Cyberspace Administration (CAC), announced that it would begin investigating China’s ride-hailing service giant Didi Global Inc, alleging it was invading user privacy.

On Tuesday, China’s National Immigration Administration for Market Regulation (SAMR) passed a series of drastic rules aimed at improving fair competition, banning practices such as fake online reviews. ..

In January, the government-backed China Consumers Association issued a statement criticizing tech companies for “bullying” consumers to buy and promote them.

Since then, regulators have regularly accused businesses and apps of invading user privacy.

On Wednesday, the Ministry of Industry and Information Technology of China accused 43 apps of illegally transferring user data and called for corrections by August 24.

(Report by Josh Horwitz, edited by Michael Perry)

China passes new personal data privacy law coming into effect on November 1st

Source link China passes new personal data privacy law coming into effect on November 1st

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