This newsletter summarizes 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
Regarding national security, on 1 July 2023, the revised Counter-Espionage Law (“CEL“) took effect, which demonstrates China’s commitment to strengthening its national security framework. For our comments on the CEL, please read our article at the link in “Our Views” section below. In October, the Law on Guarding State Secrets (Draft Revision) was submitted for consideration, which incorporated the established practice of periodic review and declassification of state secrets into the legal provisions.
Regarding governance of artificial intelligence (“AI“), the Cyberspace Administration of China (“CAC“) released the Global Initiative on Artificial Intelligence Governance, which systematically elaborates China’s programme on the governance of AI in terms of development, security and governance. The National Information Security Standard Committee continued to formulate technical documents on generative AI and provided basic guidance on the security issues of generative AI services, such as the methodology for content identification of generative AI services.
In terms of optimising the business environment, the Ministry of Industry and Information Technology (“MIIT“) issued the Opinions on Innovating the Management of the Information and Communication Industry to Optimise the Business Environment (Draft for Comment), proposing to revise the Telecommunications Business Classification Catalogue and to orderly expand the opening up of telecommunications businesses to foreign investment.
In other areas, the CAC comprehensively upgraded guidelines for Minors Mode in the mobile Internet, and clarified the security management requirements for face recognition technology. Ten ministries and commissions jointly issued the Measures for Science and Technology Ethics Reviews (for Trial Implementation), clarifying the work of the ethical review of science and technology and the regulatory mechanism. The State Administration for Market Regulation (“SMAR”) issued compliance guidelines on Internet advertising and live marketing, and National Medical Products Administration (“NMPA”) released compliance guidelines on online trading of medicines and medical devices. In addition, the Supreme Court, the CAC and the Beijing Internet Court issued a series of guidance cases or practical guidelines on online infringement in light of their practical experience.
Our Views
What You Need to Know about China’s Counter-Espionage Law
Follow the links below to view the official policy documents or public announcements.
Legislative Developments
1. Comments Sought on the Law on Guarding State Secrets (Draft Revision)
On 21 October, a draft amendment to the Law on Guarding State Secrets was submitted to the Standing Committee of the 14th National People’s Congress (NPC) for consideration. The draft amendment consists of six chapters and sixty-two articles, focussing on further strengthening the Party’s unified leadership of classified work and improving the management system and mechanism. The revision incorporated the established practice of regular reviews and declassification of state secrets into legal provisions. It has also provided standardised guidelines for classifying and declassifying state secrets, for instance, making it clear that organs and units should conduct annual reviews of identified state secrets. Additionally, it clarifies that state secrets will be declassified if the confidentiality period has expired, and no decision has been made to extend it. This will ensure the security of State secrets while facilitating the rational use of information.
On 7 October, the Ministry of Industry and Information Technology (“MIIT”) issued the Opinions on Innovative the Management of the Information and Communication Industry to Optimise the Business Environment (Draft for Comment) (the “Draft”), which will optimise the business environment in four aways: (1) optimising the access environment to be more efficient, open and unified; (2) creating a healthy, fair and orderly competitive environment; (3) accelerating the construction of a standardised, transparent and predictable regulatory environment; and (4) creating a convenient, reliable and high-quality service environment.
The Draft highlights the importance of expanding the telecommunications business in a systematic manner. It emphasizes the need to pilot the opening up of value-added telecommunications services and increasing support for private enterprises to engage in mobile communications resale and other innovative services. Additionally, it aims to promote the reform of the access system for satellite Internet businesses gradually and in stages, with the objective of allowing more private enterprises to participate in telecommunications business operations and expanding their channels and scope of involvement.
On 7 September, ten ministries and commissions collectively released the Measures for Science and Technology Ethics Reviews (for Trial Implementation) (the “Measures”). The purpose of the Measures is to regulate the ethical review of science and technology in various areas such as scientific research, technology development, and other related activities. The aim is to enhance the prevention and control of ethical risks in the field of science and technology . The Measures, which will come into effect on 1 December 2023, clarify the scope of application, responsible parties, various types of procedures (general, simplified, expert review and emergency procedures) and regulatory mechanisms for science and technology ethical review. For example, institutions of higher education, scientific research institutions, medical and healthcare institutions, and enterprises are responsible for the management of their own science and technology ethical review, and units engaging in science and technology activities whose research involves sensitive areas of science and technology ethics, should set up science and technology ethics (review) committees. For scientific and technological activities involving human research participants, the focus of the review includes: the fairness of the recruitment programme; the legal compliance of the handling of biological samples and personal information; the reasonableness of the safeguard programme for research participants, and the protection of vulnerable people; and the content of the informed consent form and the compliance and reasonableness of the manner and process of obtaining the informed consent of individuals.
On 2 August, the CAC issued the Guidelines for Developing the Minors Mode in the Mobile Internet (Draft for Comment). The purpose of these guidelines is to upgrade the “children-friendly model” to a more comprehensive “minors model”, and expand its coverage from the App to the mobile smart terminals, application stores, to create a safe and healthy online environment for minors (the “Guidelines”). The Guidelines introduce the concept of “age-specific principle”, which means that mobile smart terminals, apps and app distribution platforms should provide minors of different ages with information and services that are suitable for their physical and mental development. In addition, the Guidelines outline the following requirements: the underage mode should have an automatic switching mode, mobile intelligent terminals should set the duration of use according to different age groups, mobile intelligent terminals should have an anti-bypass function, mobile Internet information service providers should provide exclusive content for minors, and application distribution platforms should set up special areas for minors’ applications.
On 8 August, the CAC issued the Safety Management of the Application of Face Recognition Technology (for Trial Implementation) (Draft for Opinion) (the “Draft”). Management Provisions consist of twenty-five articles that cover various aspects of face recognition technology usage. These articles include general requirements for the use of face recognition technology, requirements for the use of face recognition technology in different locations, stipulates the application of security management requirements, and the use of face recognition technology for the enterprise to provide compliance landing guidance.
For instance, organisations using face recognition technology for internal management purposes should reasonably determine the image information collection area based on actual needs. Businesses, such as hotels, airports, museums and libraries, are prohibited to force, mislead, defraud, or coerce individuals to accept face recognition technology as a method of personal verification on the grounds of conducting business and improving service quality (unless otherwise provided for by law and administrative regulations). The Draft also emphasises the importance of conducting assessments on personal information protection before using face recognition technology. This includes ethical and moral considerations, as well as limitations on accuracy, precision, and distance required to achieve the purpose. Furthermore, users of face recognition technology in public places, or those storing face information of more than 10,000 people, are required to register with the CAC at or above their local municipal level within 30 working days.
In order to optimise the business network environment, on 10 August, the CAC (Cyberspace Administration of China) issued the Rules for the Acceptance and Handling of Reports on Online Infringement Information Relating to Enterprises by Website Platforms, which puts forward the conditions of the report related to certain type of infringement information. When reporting infringement information related to enterprises, networks should provide enterprises, entrepreneurs or their reporting agent with identification documents, describing the reported matters and reasons, identifying the location of the infringing content, and submitting preliminary evidence to support the report’s authenticity and legitimacy.
However, for the reports involving counterfeiting information, insulting, or confidential information, additional evidence may not be required, apart from the identification of the reporting party. After filing the report, the website platform can take measures to rectify the situation. These include warnings and reminders, setting deadlines for correction, restricting account functions, suspending account usage, closure and prohibiting re-registration.
On 15 September, the Internet Information Office issued the Guiding Opinions on Further Regulating the Reporting of Online Infringement Information. These guidelines are designed to safeguard the rights and interests of individuals, specific groups (with a particular focus on minors), and businesses. For individuals, the guidelines focus on the importance of promptly addressing reports related to violent content found online. It proposed an efficient reporting channel, along with decisive actions against accounts that disseminate violent information, engage in harassment, or incite harmful behaviour. Regarding specific groups, such as minors, the guidelines prioritise their protection and well-being online. To protect businesses, it proposes the opening a dedicated section for online reporting on enterprises, provide clearer guidance on reporting, and focus on disposing of false and inaccurate information that infringes on the reputation of enterprises and entrepreneurs, illegal websites and accounts. In addition, the Guidance emphasises the main responsibility of network platforms and strengthens the supervision and inspection of platforms.
On 25 September, the SAMR issued the Guiding Opinions on Promoting the Standardized and Sound Development of Online Auctions (Draft for Comment) (the “Draft”). The draft introduces initiatives in ten areas to promote the development of online auctions in a standardised manner. One of the key areas addressed is strengthening the management of network auction market access by the integration of online and offline operations, and ensuring that entities engaged in online auctions comply with existing auction laws and regulations. The draft also focuses on fostering innovation in the online auction industry, strengthening the network auction platform technology innovation, as well as enhancing the service. For example, to guide various types of business entities to participate in big data storage, network and information security maintenance and other network auction; encourage network auction platform operators to use technology and promote the digital transformation of the auction industry.
On 28 August, the SAMR drafted the Guidelines for Regulatory Enforcement concerning the Identifiability of Internet Advertising (Draft for Comment) (the “Draft”). According to the Draft, the advertisers are required to use the word “advertisement”, and Internet advertisements released in audio form should be clearly prompted as “advertisements” through clear voice, and should not use “sponsorship”, “promotion”, “recommendation”, “AD” and other substitutes.
10. The National Radio and Television Administration (NRTA) Published the Issuance of Measures for the Administration of Standardisation of Radio, Television and Network Audiovisuals
On 8 September, the NRTA published a notice on the issuance of the Measures for the Administration of Standardisation of Radio, Television and Network Audiovisual (the “Measures”). The document encourages relevant units in the field of broadcasting, television and network audiovisual to build a linked innovation system of technology, standards and patents, improves the timeliness of the transformation of scientific and technological achievements into national standards and industry standards, and promotes the industrialisation and application of innovative achievements.
On 17 October, the SCA issued the Administrative Measures for Electronic Authentication Services in e-Government Affairs (Draft for Comment) (the “Draft”). It aims to implement supervision and management of the establishment of e-government e-certification service organisations and the provision of their certification services in China. According to the Draft, e-government electronic authentication service refers to the use of commercial cryptography to provide electronic signature authentication service for governmental activities to ensure the authenticity and reliability of electronic signatures. Organisations engaged in e-government e-certification services should be accredited by the State Cryptography Administration and qualified as e-government e-certification service organisations.
On 6 September, the NMPA issued the Guidelines for Inspection of Third-Party Platforms for Online Drug Trading (Draft for Comment), for third-party platforms that sell drugs online, following the implementation of the Measures for the Supervision and Administration of Online Drug Sales in December last year (the “Guidelines”). The Guidelines clarify that routine inspections for third-party platforms will focus on large third-party platforms with extensive operation, wide coverage, and a large volume of business. The Guidelines will also target service enterprises that are new to the pharmaceutical distribution industry and are carrying out their third-party platform business for the first time. According to the Guidelines, the inspections of third-party platforms by the pharmacological supervision department include: the filing of the merchants, qualification examination, and whether the sale of medicines is compliant; and whether the platforms have a department for the management of drug quality and safety and are equipped with pharmacy technicians.
On 14 September, the NMPA released the Good Practice for Online Sale of Medical Devices (Draft for Comment). It aims to strengthen the quality management of online medical devices’ sale, ensure the quality and safety of medical devices’ online sales, and promote the healthy and orderly development of the online sales of high-quality industry medical devices (the “Draft”). The Draft includes key guidelines such as the system and responsibilities of quality management for network sales operators, personnel and training, facilities and equipment, quality control of network sales process, and the system and responsibilities of quality management of platform operators. For example, it emphasizes the importance of implementing quality control measures throughout the entire process of providing medical device online trading services, and ensuring the quality, safety and traceability of the medical device products sold online by the network sales operators.
On 22 August, the MNR issued Opinions on Accelerating the Transformation and Upgrading of Surveying, Mapping and Geographic Information to Better Support High-Quality Development (the “Opinions”). The Opinions make overall deployment of strengthening the guarantee of surveying, mapping and geographic information data elements from four aspects, including accelerating the establishment of a new type of basic surveying and mapping system, consolidating the foundation of spatial and temporal information positioning, enriching the basic spatial and temporal data resources, and advancing the supply of data to the industry and enterprises.
On 27 September, the MNR issued 25 industry standards, including the Road High-Precision Navigation Electronic Map Data Specification. These standards cover a various areas, including high-precision navigation electronic map, emergency mapping, urban impermeable surface data, and public parking resource information. Notably, the Road High-Precision Navigation Electronic Map Data Specification is the first industry standard on high-precision navigation maps in China. This will widely serve the fields of intelligent networked cars, autonomous driving and robot intelligent navigation, and support the development of navigation technology and industry.
On 22 August, the General Office of the State Council issued the Measures for Archiving Electronic Documents and Managing Electronic Files for Government Services.(the “Measures”). The institutional mechanism for the archiving and management of electronic documents for government services has been improved, stipulating that the State Archives Administration and the General Office of the State Council are responsible for coordinating the archiving of electronic documents and the management of electronic files for government services throughout the country, and for studying and formulating the relevant policies, rules and regulations, and operational specifications.
17. The SAMR, the Standardisation Commission and the Internet Finance Association formally released four financial national standards, including Information Disclosure of Personal Online Consumer Credit in Internet Finance and Open Source Software Measurement Specification for the Financial Industry
On August 23, the SAMR, the Standardisation Commission and the Internet Finance Association formally released four financial national standards, i.e., the Internet finance personal network consumer credit information disclosure, financial industry open-source software evaluation norms, Internet finance intelligent risk prevention and control technical requirements, Internet finance personal identification technical requirements. The China Internet Finance Association will promote the implementation of these standards through self-regulatory management, testing and certification.
18. The Ministry of Industry and Information Technology (MIIT) is seeking opinions on 109 group standard application demonstration projects
On 23 October, the MIIT issued a notice to publicly solicit opinions on 109 group standard application demonstration projects. Artificial Intelligence Computing Device Scheduling and Collaboration Series Standard is issued by the China Electronic Industry Standardisation Association (CEISA), and involves a total of two standards: Artificial Intelligence Computing Device Scheduling and Collaboration Part 1: Technical Specification for Virtualisation and Scheduling System (T/CESA) (T/CESA 1228.1-2022) and Artificial Intelligence Computing Device Scheduling and Collaboration Part 2: Distributed Computing Technical Requirements (T/CESA 1228.2-2022).
On 25 August, the Information Security Standards Committee issued the Practice Guideline for Cybersecurity Standards – Content Identification Methods for Generative Artificial Intelligence Services”. These guidelines specify identification methods for AI service providers for four types of generated content such as text, images, audio, video, etc., and specific requirements for the identification of information. For example, when displaying AI-generated content, firms have to include continuous prompting text or explicit watermark logos indicating its origin.
On 7 August, the ISSC publicly solicited opinions on the Format for Interconnection and Interoperability Alert Information of Network Security Products. This guide aims to standardise the description and format of alarm information for different network security products. It categorises the information into five categories: malicious program alarms network attack alarms, data security alarms, abnormal behavioural alarms, and other alarms; and subdivides them into 21 subcategories. The guide also provides corresponding tables with required information for each category of alarms, including the field name, field description, field type and whether it is required.
On 11 October, the ISSC released the Generative Artificial Intelligence Service Security Basic Requirements (Draft for Comment). This draft provides guidelines on security issues faced by generative AI services, such as corpus security, model security, security measures and assessment, and filing applications (the “Draft”). The Draft Basic Requirements allow generative AI service providers to conduct their own assessment or entrust a third party to carry out a safety assessment, while it can also be used as an important reference for relevant regulatory authorities to judge the safety level of generative AI services. In addition, the Draft Basic Requirements require service providers to avoid using corpus with conflicting rights or of unknown origin, and to have proof of the legitimacy of the source of the corpus, such as authorisation agreements, transaction contracts, and other legally valid documents.
On 17 August, the Beijing Municipal Commission of Health released the Implementation Measures for the Supervision of Internet Diagnosis and Treatment in Beijing (for Trial Implementation). These measures regulate medical institutions, practitioners, business content, quality and safety related to internet diagnosis and treatment. In addition, the document also clarifies the basis of punishment for medical institutions and medical personnel who violate laws and regulations, as well as the responsibility of the health and wellness administrative department to deal with medical accidents or medical disputes when they arise. On the other hand, the document points out that the healthcare information services provided by medical institutions to patients through Internet diagnosis and treatment platforms (such as consultation navigation, registration and booking, report query, public welfare live broadcasting, and literature provision, etc.) will be regulated by the relevant national regulations, and are not within the scope of regulation of the Implementation Measures. The Measures further regulate the Internet diagnosis and treatment activities in Beijing and strengthen the supervision of Internet diagnosis and treatment.
23. Beijing Municipal Bureau of Economy and Information Technology issues measures to promote the robot industry in Beijing
On 16th August, Beijing Municipal Bureau of Economy and Information Technology issued measures to promote the robot industry in Beijing, aims to promote the innovative development of the robotics industry in Beijing and the Beijing-Tianjin-Hebei region, and to promote technological upgrading and industrial synergy. The document focuses on technological innovation, industrial ecology, scenario application and factor protection, and puts forward 16 specific policy measures on the development of Beijing’s robotics industry as well as specific implementation plans for demonstration projects.
On 30 August, the Beijing Municipal Administration of Market Supervision issued the Guidelines on Compliance for Internet Advertising Enterprises in Beijing (the “Guidelines”). The document aims to further regulate Internet advertising activities in Beijing, ensure the legality, authenticity and identifiability of advertising activities. For example, the guidelines emphasise the use of legal media, not illegal Internet media; and make clear that advertisements are identifiable and not to be confused with non-advertising messages.
On 7 August, the Shanghai Municipal Administration of Market Supervision issued three exposure drafts of compliance guidelines, including the Compliance Guidelines for E-tailing Platforms in Shanghai (the “Draft”), the Compliance Guidelines for Online Catering Service Platforms in Shanghai (Draft) and the Compliance Guidelines for Live Streaming Marketing Activities in Shanghai (Draft), stressed that operators of online catering service platforms should optimise the system rules and platform algorithmic rules involving the labour rights and interests of delivery personnel; live marketing platforms need to abide by the principles of fairness, impartiality and transparency when using algorithmic technology, and platforms using algorithmic recommendations and other means of releasing Internet advertisements should incorporate the relevant rules and advertisement placement records into their advertisement files.
Enforcement Developments
On 25 September, the Supreme Court and three other departments jointly issued the Guiding Opinions on Punishing Cyber Violence Offences and Crimes in accordance with the Law, which consists of a total of 20 articles, including 10 items, such as clarifying the rules for applying the crime of cyber violence, the rules for dealing with cyber violence offences, the principles of the policy for punishing cyber violence offences, and the boundaries between cyber violence offences and lawful acts. Specifically, cyber violence offences may, depending on the severity of the circumstances, constitute the crimes of insult, defamation, infringement of citizens’ personal information, illegal use of information networks, and refusal to fulfil the obligation of information network security management, respectively. In cases where cyberviolence is committed against minors or persons with disabilities, where generative artificial intelligence technologies such as “deep synthesis” are used to publish illegal information, and where cyberviolence is initiated or organised by network service providers, heavier penalties will be imposed in accordance with the law.
On 16 October, the Supreme Court released typical cases involving the protection of personality rights of private enterprises and private entrepreneurs. Typical cases released on this occasion involve the fabrication and dissemination of false information by online media infringing on the reputation of private enterprises, the infringement of private entrepreneurs’ human dignity by registering trademarks based on improper purposes, the smearing of enterprises or their products without any factual basis, the publication of insulting remarks infringing on the enterprises’ right to reputation, and the commercial defamation of competitors in the same industry by means of false complaints, and other issues.
On 24 October, the CAC issued the thirteenth batch of a total of 204 names and filing numbers of domestic blockchain information services in accordance with the Administrative Provisions on Blockchain Information Services. According to the Administrative Provisions, blockchain information service providers shall, within ten working days from the date of service provision, fill in information such as the name of the service provider, service category, service form, application field, server address, etc. through the blockchain information service filing management system of the State Internet Information Office to fulfil the filing procedures. The blockchain information service providers that have completed the filing shall indicate their filing numbers in the prominent positions of their Internet websites and applications that provide services to the public.
On 29 August, the National Copyright Administration and four other departments jointly launched the “Sword Net 2023” special operation to combat online copyright infringement and piracy. The special action will focus on three main aspects. Firstly, it will strengthen the remediation of copyright in professional fields, such as sports events, on-demand cinemas, and cultural, creative works and regulate the order of copyright in online communication. Secondly, it will enhance copyright protection for online videos, online news and audiobooks. Thirdly, it will strengthen copyright supervision of e-commerce platforms, browsers and search engines.
On 19 October, the General Administration of Financial Supervision reminds financial consumers to be cautious of new fraudulent means that threaten personal and family property security. These techniques involve simulating other people’s voices or faces to gain trust and deceive people for monetary gain. To protect financial consumers’ rights and interests, Financial Supervision and Administration suggests verifying the authenticity of online information, confirming the identity of the other party before transferring money, and safeguarding personal information such as photographs and voices.
On 24 October, the department directed websites and platforms to strengthen monitoring and verification. They conducted investigations, rectifications, traced back and closed the first rumour account. In total, 1,781 unlawful and illegal accounts were disposed of. The CAC emphasised its commitment to cracking down on internet rumours, investigating and dealing with accounts that spread rumours, exposing violations of the law and creating a safe cyberspace. They also encouraged relevant departments and individuals to actively participate in monitoring and reporting to eradicate the breeding ground for internet rumours.
On 10 October, the General Administration of Financial Supervision, in conjunction with the People’s Bank of China and the China Securities Regulatory Commission (CSRC), released typical cases of financial consumer rights protection. For example, a commercial bank has established an anti-fraud intelligent risk control system for retail business, which actively monitors and intercepts telecommunication frauds to help consumers avoid financial losses.
33. Beijing Internet Court Releases Typical Cases Involving Internet Violence
On 3 August, the Beijing Internet Court held a press briefing on the trial of cases involving online violence and released eight typical cases. The released cases involve a number of cases involving online tort liability disputes. Judges of the Internet Court suggested that to control violence and purify the network environment, network users need to abide by the norms of using the Internet. Network service providers also need to comply with laws and regulations, properly perform their duties, and safeguard the legitimate rights and interests of network users.
34. Shanghai’s 18 Compliant Online Taxi Platform Companies
Since 14 August, several departments, including the Municipal Transportation Commission, the Municipal Road Transportation Bureau, the Municipal Public Security Bureau, the Municipal Market Supervision Bureau, the Municipal Communications Bureau, have been dealing with 18 network car companies in Shanghai that have received complaints. Platform companies that have a poor track record in implementing measures will be required to present a monthly implementation plan by the end of this year. In cases where platform companies refuse to implement or implement ineffectively, further measures, such as joint household inspections, suspension of Internet services in the region and other joint disposal measures may be taken as deemed necessary.
Recently, Shanghai Minhang Court heard a case of illegal control of a computer information system. In this case the defendant used a mobile phone software with embedded in the mandatory pop-up codes and hidden the background icons to camouflage the software process. The intention was to force users to view advertisements and make illegal profits. The court considered the circumstances to be serious and concluded that they had committed the crime of illegally controlling the computer information system as joint perpetrators.
36. Shanghai CAC held a “self-media” information content published in the classification guidance, reminding not to illegally edit
August 3, Shanghai Internet Information Office held a “self-media” information content. During the meeting, the Shanghai Internet Information Office presented the “Internet News Information Service Management Regulations” and provided detailed explanations on five types of typical violations by “self-media”. The meeting emphasized that “self-media” without an Internet news information service license should not engage in illegal activities related to internet news information services. It also highlighted the importance of enhancing internal management systems and effectively managing account information, content editing, information dissemination, and follow-up comments through rigorous auditing.
October 11, Shanghai Pudong Market Supervision Bureau released Pudong New Area Enterprise Trade Secret Protection Guide to assist enterprises with building a three-dimensional protection mode of trade secrets. The Guide makes new attempts in enterprise self-protection, rights protection guidelines, and legal guidance on international trade secret protection, for example, it specifies the implementation of different protection strategies for large enterprises, medium-sized enterprises, and small enterprises, establishes standards and norms for personnel, premises, information network construction, and document and data management. Moreover, it helps enterprises understand the legal environment of trade secret protection in different countries, develop effective response strategies and risk prevention and control.
A few days ago, the Guangdong Provincial Consumer Council organised and held a “Minors’ game top-up supervision interview”. They interviewed several headline online game companies and software platform enterprises and requested effective measures to be taken to address the problems of minors using adult accounts to log in to the game, recharge, refund their fees, and to effectively fulfil the legal responsibility and obligation of preventing minors from becoming addicted to online games.
In response to the current problems of underage game top-ups, the CCPC outlined the following requirements: further strengthening the real-name authentication function, strengthening top-up management, restricting minors from using their parents’ identities for top-ups, addressing the problem of minors’ top-ups, and increasing the refund ratio. Enterprises indicated that they would introduce improvement measures promptly.
Industry Developments
39. The CAC Released Global Initiative on Artificial Intelligence Governance
On 18 October, the State Internet Information Office released the Global Initiative on Artificial Intelligence Governance. This initiative systematically elaborates on China’s programme for artificial intelligence governance in the three areas: development, security and governance. The Initiative puts forward eleven initiatives, including the development of artificial intelligence should adhere to the concept of “people-oriented”, respect the sovereignty of other countries, and promote the establishment of a risk level testing and assessment system. Specifically, the Initiative points out the need to gradually establish and improve laws and regulations to safeguard personal privacy and data security in the research, development and application of AI. It also opposes illegal collection and use of personal information such as theft, tampering, leakage. The Initiative proposes to enhance the representation and voice of developing countries in the global governance of artificial intelligence. It also aims to ensure equal rights, opportunities and rules for the development and governance of artificial intelligence in all countries. The initiative suggests carrying out international cooperation and assistance for developing countries to bridge the intelligence divide and the gap in governance capabilities.
On 29 August, the Ministry of Industry and Information Technology along with five other departments issued the Three-Year Action Plan for the Innovative Development of the Metaverse Industry (2023-2025) (the “Action Plan”). The Action Plan follows the principles of innovation-driven, scenario-driven, integration and mutual promotion, safe and reliable, and open and collaborative. It specifies short-term and future long-term development goals to be achieved by 2025. For example, the Action Plan aims to cultivate 3-5 ecological enterprises with global influence and a number of specialised small and medium-sized enterprises. It also aims to create and 3-5 industrial development clusters. The key tasks of the Action Plan include building an advanced meta-universe technology and industrial system, cultivating three-dimensional interactive industrial meta-universe, creating immersive and interactive digital life applications, building systematic and complete industrial support, and building a safe industrial governance system. To achieve these goals, it is necessary to strengthen coordination, optimise talent training and deepen international cooperation.
On 26 August, the Supreme People’s Court issued a research report on the judicial protection of people’s rights and interests in the digital economy. The Report highlights the challenge of balancing the protection people’s rights and interests in the digital economy. The Supreme Court conducted comprehensive internet research and identified several problems. The first major problem identified is related to the application of laws on the civil judicial protection of data rights and interests. The second major problem is the difficulties in judicial protection of the rights and interests of workers in the new forms of employment. The third major problem is the judicial protection of civil rights and interests of online consumers. The fourth major problem is the difficulty in judicial protection of civil rights and interests in online infringement disputes. The fifth major problem is the exploration and improvement of the algorithmic technology judicial system.
42. The CAC Released the 52nd Statistical Report on Internet Development in China
On 29 August, the China Internet Network Information Centre (CNNIC) released the 52nd Statistical Report on Internet Development in China (the “Report”). The report states that as of June 2023, the number of Internet users in China reached 1.079 billion, with an Internet penetration rate of 76.4%. The construction of digital infrastructure has been accelerated, and the foundation of the Internet of things has been strengthened. Various internet applications continue to develop, with growing user bases in multiple categories. The transformation of internet applications for the elderly is also being actively promoted.
On 23 September, the China Advertising Association released the Specification for After-sales Service of Live Webcast Marketing (the “Code”). It is a group standard that provides guidelines for alive webcast marketing and in live sales and after-sales service. For example, a complaint handling system before the live broadcast is to clarify the process, nodes and responsibilities of all parties. During the live broadcast, active e attention is paid to after-sales problems and timely response to consumer needs. After the live broadcast, after-sales service commitments are fulfilled, and consumer-initiated after-sales applications are handled.
On 12 September, China Securities Investment Funds Association issued the Technical Specification for Mobile Internet Applications of Fund Management Companies (the “Specification”). The purpose is to provide guidance for public fund management companies in offering mobile Internet application services to enhance their ability to serve investors. Fund management companies should understand the Technical Specification, assess the company’s existing mobile Internet applications and make necessary adjustments and improvements. Internal should be formulated to specify the requirements for technical development, testing, operation and maintenance of mobile Internet applications incorporating the contents of the Technical Specification. Focus should be placed on the security and compatibility of mobile Internet applications enhancing data encryption and protection measures to ensure user information security. A management system for research and development, operation and maintenance should be established to ensure stability, reliability and timely updates of mobile internet applications. Exploration and promotion of innovative applications should be encouraged, incorporating emerging technologies such as artificial intelligence and blockchain to enhance user experience, service capabilities and meet investor needs.
On 29 August, the country’s first digital real estate right certificate was officially released in Shenzhen. The certificate combines blockchain, cloud computing, biometrics and other technologies, along with real estate structured information, electronic certificates, and entity BIM (Building Information Model) data. It enables the query of full spatial elements, and provides detailed information on location, area, layout, design, components and environmental monitoring of a house. The data can be used to various businesses such as architectural design, housing rental and sale, decoration, mortgage financing and e-commerce. It enables full-cycle intelligent tracking , and facilitates the supervision of construction approval, law enforcement for investigation and violation, structural quality and fire safety, and urban space design The application scenarios of digital real estate right certificates will continue to expand in the future.
