Data Compliance in China

Opening-up of Value-added Telecommunications Business

On April 10th, the Ministry of Industry and Information Technology (MIIT) issued the Notice on Pilot Expansion of Opening-up of Value-added Telecommunications Business, making arrangements for pilot expansion of opening-up of value-added telecommunications business. The second part of the Notice mentions that foreign capital equity restrictions will be lifted for the following types of businesses in areas approved for pilot programs: Internet Data Centers (IDCs), Content Delivery Networks (CDNs), Internet Access Services (ISPs), Online Data Processing and Transaction Processing, Information Services including Information Release Platforms and Delivery Services (excluding Internet news information, network publishing, network audio-visual, and Internet cultural operations), and Information Protection and Processing Services.

Data Security Assessment in Shenzhen

On April 22nd, the Shenzhen Municipal Government issued the “Public Data Security Assessment Method” (hereinafter referred to as the “Method”), which will be implemented on May 1, 2024. The Method stipulates the general rules for public data security, general management security assessment requirements, general technical security assessment requirements, data processing activity security assessment requirements, overall assessment and assessment conclusions. The Method is applicable to the public data security assessment of public data supervisory authorities and public management and service institutions at all levels, and also to the assessment of the data security capabilities of service platforms that handle a large amount of personal information. It is not applicable to the public data security assessment involving state secrets.

Enforcement regarding Mobile Apps

In the past months, the nationwide App governance work has been further strengthened. • On March 27th, the Zhejiang Provincial Communications Administration issued the “Notice on 27 Apps Infringing on User Rights (2024 Batch 2)”. • On March 29th, the Guangdong Provincial Communications Administration issued the “Notice on Taking Down 3 Apps Infringing on User Rights”. On the same day, the Guangdong Provincial Communications Administration publicly notified 18 apps that had not completed rectification as required. • On April 2nd, the Shandong Provincial Communications Administration issued the “Notice on App Infringing User Rights (2024 Batch 3)”, a total of 26 apps that were found to have problems and were notified to rectify within a time limit but did not complete the rectification within the time limit were notified.

• The main problems with the above-mentioned apps are:

Illegal collection of personal information;
Excessive collection of personal information;
Frequent self-starting and associated starting of apps;
Compulsory, frequent, and excessive access to permissions;
Illegal use of personal information;
Forcing users to use targeted push functions, etc.

Forced Face Scanning Prohibited

On April 19th, the Shanghai Hotel Industry Security Management Information System issued notices and reminders one after another, strictly prohibiting the “forced face scanning” verification of visitors who have shown their valid ID cards, and strictly prohibiting the problem of not being able to check in without “face scanning”.

According to the “Guest Registration Inquiry Flow Chart” made by the Public Security Corps and Exit-Entry Administration Bureau of the Shanghai Municipal Public Security Bureau, there are two ways to verify the identity of mainland residents who arrive at the hotel without a valid ID card, and “face scanning” requires consent.

• If the passenger agrees to have their facial information collected, they will proceed to the “Registration without ID” module for processing.
• If the passenger does not agree to have their facial information collected, please ask the passenger to go to the police station to obtain a relevant certificate.

If you have any concerns or questions about how these trends may impact your business,  we encourage you to reach out to our legal experts for guidance.

Shanghai Office Beijing Office
Albert WANG
Partner
wangdongfang@eastconcord.com

SHEN Xiaoyu
Partner
xiaoyu_shen@eastconcord.com

ZHU Xiangming
Partner
zhuxiangming@eastconcord.com

YE Peng
Partner
yepeng@eastconcord.com

KAN Hui
Partner (also at Guangzhou
Office)
kanhui@east-concord.com

ZHANG Mai
Partner
mai_zhang@eastconcord.com

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