This newsletter summarises the latest developments in Technology, Media, and Telecommunications in China with a focus on the legislative, enforcement and industry developments in this area.
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Key Highlights
In 2023, we have witnessed remarkable regulatory advancements across various domains of the TMT sector in China. Notably, as the emerging technologies of artificial intelligence (“AI”) have been revolutionising whole industries and bringing problems such as false information, algorithm discrimination and technology ethics, Chinese government has released a series of regulations as the breakthroughs in its AI governance. In addition, regulatory changes have been taken place in other TMT domains such as internet advertising, online sales, telecommunications, intelligent and connected vehicles, and gaming-related issues. As we head into 2024, it will be crucial for businesses to adapt to these regulatory changes and tackle with the new challenges. Let’s take a closer look at these regulatory and enforcement developments and what we could expect for 2024 in the article at the link below.
Our Views
China TMT: Annual Review of 2023 and Outlook for 2024
Follow the links below to view the official policy documents or public announcements.
Legislative Developments
- The State Council of the People’s Republic of China approved and replied to the Work Programme to Support Beijing in Deepening the Construction of the Integrated Demonstration Zone for Opening Up of the National Service Sector, pushing forward the deepening of reforms in several service areas, including telecommunications (23 November)In its reply to the programme, the State Council asked the Beijing Municipal Government to deepen the construction of the Integrated Demonstration Zone for Opening Up the Service Sector by carefully organising and boldly practising the programme, and to carry out early and pilot tests for docking with international high-standard economic and trade rules on the premise of controllable risks. The programme will promote reform and opening up in the field of telecommunication services, i.e. to abolish the foreign equity ratio restriction on value-added telecommunication businesses such as information service business (App Store only, excluding online publishing services) and Internet access service business (Internet access services for subscribers only) in Beijing, and will study on the further opening up of value-added telecommunication businesses in due course.
- The National Press and Publication Administration publicly solicited comments on the Draft Measures for the Administration of Online Games (22 December)The draft was formulated in accordance with China’s laws and regulations relating to the protection of minors, cybersecurity and personal information protection, publication management and Internet information service management, and is applicable to online game publishing and operating activities in China, aiming to regulate the order of the online game industry and safeguard the physical and mental health of minors. The draft specifies rules on the licensing of online game publishing services, the approval of online games, the issuance of virtual currency and items in games, and transaction norms, as well as the protection of minors. Among other things, the draft clearly restricts the overuse and high consumption of games, stipulating that online games shall not set up induced rewards, shall not provide or condone the trading of virtual items at high prices, shall set up user purchase limits and make them public in terms of use, and shall carry out pop-up notifications for irrational consumption behaviour of users.
- The Ministry of Industry and Information Technology (“MIIT”) and four other departments issued the Notice on the Pilot Work of Access and Road Passage of Intelligent and Connected Vehicles (17 November)To implement the Opinions on Strengthening the Management of Intelligent and Connected Vehicles (“ICVs”) Manufacturing Enterprises and Product Access, MIIT, in conjunction with the Ministry of Public Security, the Ministry of Housing and Urban-Rural Development and the Ministry of Transport, has decided to carry out a pilot project for the access to and on-road passage of ICVs. The notice specifies the declaration method and implementation plan for the pilot work. For example, pilot automobile manufacturers need to pass product testing and safety assessment before submitting product access permit applications to MIIT. For the advanced technologies and products, feasible solutions, and innovative mechanisms for the integration of autonomous driving and “vehicle-energy-road-cloud” that have been proved by the pilot, the relevant promotable and replicable pilot results will be refined and further promoted and applied.
- MIIT issued the “5G+ Industrial Internet” Integration and Application Pilot Zone Pilot Work Rules (Interim) and its guidelines (6 November)The rules and its guidelines are aimed at guiding all parts of China to actively and orderly carry out the pilot construction of “5G+ Industrial Internet” integration and application pilot zones, promote the large-scale development of “5G+ Industrial Internet”, and create industrial clusters with national and regional leading effects. The rule specifies the process of the pilot zone, including declaration, assessment, approval, tracking and evaluation, and other major processes. The declaration materials include the work programme of the pilot zone and relevant supporting materials. The Guidelines further provide relevant guidelines on pilot development policies, pilot infrastructure, pilot industry applications, pilot industrial ecology, and pilot public services.
- Ministry of Transport issued the Guidelines on Transportation Safety Services for Autonomous Vehicles (Interim) (21 November)The Guidelines apply to the service of using autonomous vehicles to engage in urban public bus and electric trolley passenger transport, taxi passenger transport, road passenger transport, and road cargo transport operation activities on various types of roads where social motor vehicles pass, such as urban roads and highways. The Guideline consider the current level of development of autonomous vehicles, demonstration applications, safety production characteristics and safety management needs in various fields and specify the particular scenarios and applicable conditions for the use of autonomous vehicles to engage in transport operations in the fields of urban public buses and electric trolley buses, rental cars, road passenger transport, road freight transport and so on.
- MIIT issued the Interim Measures on Radio Management for Civil Unmanned Aircraft (27 December)To implement the Radio Management Regulations of the People’s Republic of China, the Interim Regulations on the Flight Management of Unmanned Aircraft and other superior laws, MIIT issued the Interim Measures in order to refine the policy on the radio management of unmanned aircraft, clarify the scope of management, simplify the administration as well as strengthen the supervision of use. For example, it clarifies the requirements for obtaining radio station licences for civil unmanned aircraft communication systems, and makes provisions for carrying other radio stations; and clarifies that some civil unmanned aircraft system radios are managed in accordance with ground-based public mobile communication terminals, and do not need to obtain radio station licences.
- Beijing issued Administrative Rules on Data Collection Safety in Beijing ICV Policy Pioneer Zone (Interim) (27 November)The management rules are aimed at enterprises and regulatory and supervisory authorities in Beijing’s high-level autonomous driving demonstration zones, taking the lead in clarifying the requirements for data collection for “vehicle, road and cloud” integration, and providing standardised operational guidelines for the clustering and unified management of industrial data resources. The rules require classification management and hierarchical protection of collected data. The core norms include the need to obtain passenger consent for data collection inside the vehicle, the timely deletion of relevant data outside the vehicle if individual consent cannot be obtained, and the adoption of the principle of minimum necessary when collecting data. In the future, Beijing’s high-level autonomous driving demonstration zone will build a basic system of “vehicle, road and cloud” integrated data security and circulation, empowering the city’s digital economy technology.
- Decision on Promoting the Development of Telematics and Intelligent Networked Vehicles issued by the Standing Committee of the Jiangsu Provincial People’s Congress (3 November)The decision clarifies the definition of connected vehicles and ICVs and emphasises the principles to be followed in their development. The Jiangsu provincial government should strengthen its leadership in the development of connected vehicles and ICVs, improve the policies and measures of pilot zones, encourage complementary co-operation between upstream and downstream industrial chains, support research in connected vehicle science and technology, and co-ordinate special funds related to enterprises in the province to support the industry’s development. In addition, the decision covers infrastructure development, business model exploration, and industry cluster development. The decision comes into effect on 1st January 2024.
- China Audio-Video and Digital Publishing Association issued the Guidelines for the Application of Generative Artificial Intelligence Technologies in the Publishing Industry (20 December)The guidelines provide guidance on the application of generative AI technology in the publishing industry to ensure that content is correctly orientated, complies with regulations, and protects privacy and data security. The main application scenarios include information collection, creation, review, editing and proofreading, publicity and promotion, decision-making and knowledge services. Publishing organisations need to follow relevant regulations and business processes and strengthen content screening and staff training. Service providers need to establish corresponding audit and protection mechanisms. The guidelines are effective since 20 January 2024.
- Shanghai Municipal Government released Several Measures for Promoting the Innovation and Development of AI Large Models in Shanghai (2023-2025) (7 November)The measures aim to implement the “Regulations of Shanghai on Promoting the Development of AI Industry” and accelerate the creation of a world-class industrial cluster of AI in Shanghai. The measures contain four main categories: (1) supporting large model innovation capabilities, (2) enhancing the supply capacity of innovation factors, (3) promoting large model innovation applications, and (4) creating a first-class innovation environment. Specific measures include giving green channel and priority support to qualified AI Data Center in terms of energy consumption indicators.
- Kunming issued the Measures to Accelerate the Development of the AI Industry in Kunming (Interim) (10 December)The measures aim to promote the demonstration of AI technology application in Kunming in terms of industry introduction, carrier construction, computing power layout, universal computing power service, scenario application, etc., and build a new growth engine of AI. For example, enterprises are encouraged to build dual innovation carriers such as AI industry empowerment centres, and are given financial subsidies ranging from RMB 200,000 to RMB 1 million and rent reduction or exemption support after comprehensive assessment.
- Guangdong issued Implementation Opinions on Accelerating the Construction of a Leading Place for General AI Industry Innovation (3 November)Guangdong plans to achieve the top national and global position in intelligent computing power by 2025, improve the general AI technology system, expand application scenarios, make the core industry scale exceed RMB 300 billion and the number of enterprises exceed 2,000, and become a national innovation leading place for the AI industry. The opinion proposes that Guangdong should build a national intelligent computing power hub centre, create a credible data integration and development zone in the Greater Bay Area, and create a general artificial intelligence industry cluster area, etc. It also proposes corresponding safeguard measures, such as building a high-level talent cluster and exploring the creation of an inclusive and prudent regulatory environment.
- MIIT issued the Work Programme for Promoting High-quality Development of Ageing-friendly Digital Technologies (19 December)To implement the requirements of the Barrier-Free Environment Construction Law and meet the needs of the elderly for digital life and information services, the programme puts forward key tasks such as strengthening standardisation, improving the quality of product and service supply, and optimising the user experience, and plans to realise a more robust system of standards and norms for ageing-friendly digital technologies by the end of 2025, and a steadily increasing sense of access, happiness and security for the elderly in the development of information technology. For example, it will promote the introduction of more than 20 urgently needed standards, including the Technical Specification for Ageing Adaptation of Mobile Internet Applications, and focus on guiding websites, apps and applets that rank among the top 30 in the country in terms of the number of users in various fields and among the top 10 in provinces and municipalities, to complete ageing-adaptation and accessibility modifications.
- Beijing Municipal Administration for Market Regulation issued Guidelines for the Protection of Trade Secrets of Beijing Internet Enterprises (8 November)The Guidelines are formulated in accordance with the Anti-Unfair Competition Law, the Provisions on the Prohibition of Infringement of Trade Secrets, etc., and provide Beijing Internet enterprises with directions and suggestions on the construction of a trade secret management system, protection strategies, and protection systems. Strategically, the protection of trade secrets of Internet enterprises focuses on prevention, and adopts a combination of technical means and management means. Enterprises are encouraged to set up internal trade secret management departments, build trade secret protection organisations, and hire professional third-party service providers to assist in building trade secret management systems according to demand. For example, for the possible leakage of trade secrets, set up a special emergency management department within the enterprise, and formulate an emergency management plan.
- Shanghai Municipal Administration for Market Regulation issued Compliance Guidelines for Live Webcast Marketing Activities in Shanghai (Revised Version 2023) (3 November)The Guidelines are applicable to live webcast marketing activities carried out in Shanghai, aiming to promote the healthy development of live webcast marketing activities, and require the corresponding activities to comply with the Measures for the Administration of Live Webcast Marketing (Interim) and other national regulations. If the corresponding activities constitute commercial advertisements, they shall comply with the provisions of the Advertising Law. The Guidelines set out specific compliance requirements for subjects such as live broadcast marketing platforms, operators within the platforms, live broadcast room operators, anchors, and anchor service organisations. For example, the Guidelines require platforms not to use minors under the age of ten as spokespersons for advertisements. The guidelines are effective from 3 November 2023 onwards.
- Shanghai Municipal Administration for Market Regulation issued the “Compliance Guidelines for Shanghai E-tailing Platforms” (10 November)The guideline mainly covers compliance requirements for the main body of Shanghai’s e-tailing platforms, merchant and product management requirements, operation and management requirements and consumer rights protection. The guidelines also emphasise the formulation and disclosure of platform agreements and transaction rules, and require e-tailing platform operators to set up compliance management bodies and establish compliance management systems. For example, e-tailing platform operators shall verify, register, and build a file of business licences, administrative licences and other subject qualifications submitted by operators applying for access to the platform in accordance with the law, and verify and update them at least once every six months. The guideline has been implemented since 10 November 2023 and aims to promote the healthy development of e-tailing platforms.
- Shanghai Municipal Administration for Market Regulation issued the “Compliance Guidelines for Shanghai Online Catering Service Platforms” (20 November)The guideline requires operators of online catering service platforms in Shanghai to register as market entities and obtain administrative licences in accordance with the law, and to prominently display the information on the platform. The platform shall set up a food safety management organisation, formulate platform service agreements and transaction rules, and make them public on an ongoing basis. The platform shall modify the rules in a prominent position on the main page for public consultation, and the modifications shall be publicised at least seven days before implementation. The platform should also establish a food business management system to protect public health and maintain market order. The guidelines also stipulate the platform for the application of the platform for the network catering service operators in the management requirements, including qualification standards and processes, platform catering service operators’ information disclosure, signing of food safety agreements. In addition, the guidelines also provide for the management of food and beverage distribution, advertising and marketing management, anti-unfair competition, algorithmic norms and other aspects.
- Guangdong Municipal Administration for Market Regulation issued Operational Guidelines for E-Commerce Platform Operators to Modify Platform Service Agreements and Transaction Rules (6 November)The Guidelines aim to promote the standardised, healthy and sustainable development of the platform economy and protect the legitimate rights and interests of consumers and operators. The Guidelines require that e-commerce platform operators in Guangdong Province should follow the principles of openness, fairness and impartiality in accordance with the law to formulate and revise platform service agreements and transaction rules in order to clarify the rights and obligations with respect to entering and exiting the platform, guaranteeing the quality of goods and services, protection of consumers’ rights and interests, and protection of personal information. The process of revising platform service agreements and transaction rules shall include drafting, solicitation of opinions and publicity, and shall ensure that operators and consumers can read and download them in a convenient and complete manner.Enforcement Developments
- The Cyberspace Administration of China launched a special operation entitled “Clean Up – Rectifying the Problem of Undesirable Information Content Orientation in Short Video” (12 December)The January special action aims to focus on rectifying the frequent chaos in the short-video sector, focusing on solving the problems of biased algorithmic value orientation of short-video platforms and insufficient high-quality content. The special action will target three categories of prominent issues, namely false information, inappropriate behaviour and misconceptions, and require short video platforms to strengthen their content review systems and standardise their functioning, so as to satisfy the spiritual and cultural needs of the people, promote the formation of a benign competitive environment, and facilitate the healthy development of the industry.
- National Radio and Television Administration continues to regulate online micro-dramas (15 November)PRC has taken several measures to continuously carry out the governance of online micro-short dramas, aiming to regulate the industry’s ecology. Since last year, PRC has taken down several non-compliant micro-dramas and imposed penalties on non-compliant platforms. As a next step, PRC will further improve its management mechanism and intensify its management efforts in seven aspects, including formulating relevant rules, studying and promoting the incorporation of APPs and ” mini programmes” into daily management, and establishing a “blacklist” mechanism. In addition, PRC will also promote industry self-discipline and mutual supervision, carry out special rectification work again, strengthen the guidance of creative planning, and create more masterpieces.
- The Beijing Internet Court made public the judgement of the first copyright infringement case of AI-generated images in China (1 December)The judgement of the first AI-generated picture copyright infringement case was released, the defendant infringed and compensated RMB 500. The court held that if AI-generated pictures reflect the original intellectual input of a person, they should be protected by copyright law. In this case, the plaintiff used the AI model to generate the picture, and the defendant used the picture without permission, infringing the plaintiff’s right of authorship and the right of information network dissemination. The Defendant argued that it was uncertain whether the Plaintiff had the right to the image in question, and that the main content of its posting was an original poem rather than the image in question, so it did not have the intent to infringe. The court ruled that the defendant should make a public apology and compensate the plaintiff RMB 500. It is worth noting that this case is different from the case of direct generation of AI works, and the judge devoted a significant portion of the judgement arguing the plaintiff’s involvement.
- Beijing Internet Court heard the First “AI Sound Infringement Case” in China (13 December)China’s first “AI voice infringement case” was heard at the Beijing Internet Court, where AI technology is capable of mimicking and reproducing human voices, triggering suspicions of personality right infringement. The plaintiff, Ms Yin, was engaged in voice-over and broadcasting work when she discovered that her voice had been transformed by AI into a product called “Magic Xiao Xuan”, which was used by internet users to dub short videos. The plaintiff sued the five companies, requesting that they stop infringing on her voice rights, take down the product, and publicly apologise. All five defendants denied infringement. The case involves the protection of rights and interests in new industries and fields, and the judgement will be made by a full panel after full deliberation.
- Beijing Intellectual Property Court issued Answers to Litigation Questions for Parties in Civil Cases of Infringement of Trade Secrets and Ten Typical Cases of Infringement of Trade Secrets (5 December)Beijing Intellectual Property Court released ten typical cases of trade secret infringement, aiming to create a business environment based on the rule of law. These cases are of guiding significance in clarifying the trial ideas and adjudication rules of trade secret infringement cases, enhancing enterprises’ awareness of self-protection and compliant operation, and forming a favourable atmosphere of respecting trade secrets and protecting trade secrets in the whole society.
- 15 Departments launched the “Say No to Telecommunications Network Fraud” Special Campaign (24 November)The campaign aims to protect the legitimate rights and interests of teenagers, combat telecommunication network fraud through the collaborative work of various departments, and raise teenagers’ awareness of prevention. The campaign will last until March 2024, and each department will carry out relevant work based on the division of responsibilities in response to the frequent and high incidence of telecommunication network fraud cases and outstanding problems.
- MIIT announced the Second List of Typical Cases of Mobile Internet of Things Applications, the List of Typical Application Cases of Advanced Computing in 2023, and the List of Excellent Cases of Improving the Service Capacity of Mobile Internet Applications (11 December)MIIT announced the list of Typical Application Cases of Advanced Computing in 2023, and a total of 34 application cases were selected. These cases come from all over the country and involve different fields, demonstrating the wide application and potential of advanced computing. The notice requires localities to combine the actual situation, increase support for the selected cases, and promote the large-scale application of the excellent results.Industry Developments
- National Work Conference on Industry and Informatisation held in Beijing, easing telecom market access (21 December)The meeting summarised the work of industry and informatisation in 2023 and deployed tasks for 2024, stressing the importance of taking Xi Jinping’s Thought on Socialism with Chinese Characteristics in the New Era as a guide, advancing the new type of industrialisation, accelerating the optimisation and upgrading of the manufacturing innovation system and industrial structure, promoting the development of small and medium-sized enterprises (SMEs) specialising in specialties and new products, promoting the high-quality development of the information and communications industry and continuously optimising the environment for the development of industry. The meeting pointed out that 2024 is a crucial year to fully implement the deployment of the National Conference on Promoting New Industrialisation, adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and promote the cause of industry and information technology to a new level.
- China Academy of Information and Communications Technology (“CAICT”) and others released the Blue Skin Report on Big Model Governance (2023) – From Rules to Practice (24 November)The report analyses the risks and challenges triggered by the technological changes of big models, refines the basic framework of big model governance, and focuses on four major topics to explore corresponding institutional solutions. At the same time, the report also focuses on the latest trends in global big model governance and explores the main landing tools for big model governance in China. The report aims to provide useful reference for improving the big model governance system and promote the sustainable development of AI.
- CAICT released Research Report on Legal Issues of Intellectual Property Rights in AI (2023), White Paper on the Connected Vehicles, White Paper on Blockchain (2023), White Paper on Metaverse (2023)CAICT released a research report and three white papers focusing on developments in the areas of AI intellectual property rights, automobiles, blockchain and metaverse. Among them, the Research Report on Legal Issues of Intellectual Property Rights in AI (2023) conducts a comprehensive study on the development of intellectual property rights and the governance of issues in the field of artificial intelligence on a global scale. In addition, CAICT released the White Paper on Connected Vehicles (2023) and the White Paper on Blockchain (2023), focusing on the development trend and industrial ecology of the autonomous vehicle industry and blockchain technology. Finally, the institute released the White Paper on Metaverse (2023) in conjunction with the Virtual Reality and Metaverse Industry Alliance, which provides a comprehensive overview and study of the development of the metaverse.
- Beijing Fintech Industry Alliance released Fintech Governance and Application-Related Research Results, including the Implementation Guidelines for Blockchain Operation Service Governance (27 October)From 26 to 27 October 2023, Beijing Fintech Industry Alliance held the 2023 Fintech Security and Innovation Conference in Jinan. Focusing on topics such as financial data, digital infrastructure and new-generation artificial intelligence technology, the conference invited experts and scholars from all walks of life to share industry experience and explore development paths, aiming to promote the deep integration of financial business and digital technology. Several research results were released at the conference, including reports on digital transformation planning, data asset valuation, AI chip application, and financial data element circulation technology, providing reference for the industry.
Vice minister of MIIT, Zhang Yunming, attended the opening ceremony via video and delivered a speech. Zhang said that the Chinese government has achieved a series of positive results in the innovation and development of 6G, including the establishment of a promotion group, clear policy guarantees and strengthening of international cooperation. As a new generation of intelligent and comprehensive digital information infrastructure, 6G needs to be deepened by the global industry, academia, research and use of all parties to further enhance the depth of innovation, the breadth of integration, and the strength of cooperation.
