China Gives Comprehensive Data Security Laws, Utilizing Technology Stocks.
Key Sentence:
- China has imposed extensive new rules on collecting and using personal data as Beijing tightens its regulations for its Technology Stocks.
According to the Xinhua State Agency, the Personal Technology Stocks Act was passed by the Standing Committee of the National People’s Congress on Friday and the 1st. To date, no law in China explicitly regulates the collection and use of such data. Instead, law enforcement agencies rely on statutes spread across existing regulations to handle data confidentiality cases.
The full text of the law has yet to be published, but Xinhua.
It “clarified” the rules for cross-border “processing” and “provision” of personal data, Technology Stocks among other things.
News of the law comes after several Chinese tech companies, including Didi, were accused of misusing user data in recent months. Shortly after Didi went public in the US, Chinese regulators accused him of “illegally collecting and using personal data.” Beijing has cited the risk of data misuse to national security as regulators pressure companies that have registered it overseas.
Xinhua also said the law would create stricter regulations of China’s public surveillance system. Which requires disclosing and labeling hardware used to identify individuals in public. The data collected can only be used to maintain public safety, the news agency reported. China operates an extensive network of cameras powered by advanced facial recognition. And artificial intelligence technology to control crime and verify identities in subways, schools, and office buildings.
According to state television CCTV, the law also stipulates that companies are not allowed to use personal information to reach individuals for marketing purposes. Therefore, businesses need to provide an easy way for consumers to leave targeted marketing.
CCTV also reports that sensitive personal data – such as biometrics, health care. And financial accounts – should only be processed with the individual’s consent. If the company handles personal data illegally, its services may be suspended or terminated by the law.
Those who refuse to make adjustments will be fined up to 1 million yuan.
The news rocked Chinese tech stocks on Friday, adding to what was already another disastrous week. JD.com (JD), Xiaomi, and Alibaba (BABA) fell 2% or more in Hong Kong. Health information subsidiaries JD, Alibaba, and Ping An Insurance (PIAIF) were among the worst performers, dropping 13% or more.
This week, Hong Kong’s Hang Seng Technology Index, which tracks the trade of the city’s 30 most prominent technology companies, fell more than 10%. This was the index’s worst weekly performance since February.