Legislation
Legislative Affairs Commission of the NPC: Develop a Supporting System for Personal Information Protection Law
On July 28, 2022, the Propaganda Department of the Central Committee of the Communist Party of China held a series of press conferences on the theme of China in this decade. Xu Anbiao, member of the Standing Committee of the National People's Congress and deputy director of the Legislative Affairs Commission, emphasized that for the implementation of the Personal Information Protection Law, there are many provisions that require supporting regulations, such as the management of image collection in public places, the management of personal information security, personal information security assessment on cross-border transfer and other specific rules. 1
CAC Releases the Security Assessment Measures for Data Export to Come into Force on September 1, 2022
On July 7, 2022, the Cyberspace Administration of China (“CAC”) issued the Security Assessment Measures for Data Export (“Measures”), which will come into effect on September 1, 2022. The relevant person in charge of the CAC said that the introduction of the Measures aims to implement the provisions of the Cybersecurity Law, the Data Security Law and the Personal Information Protection Law, regulate data cross-border transfer, protect the rights and interests of personal information, safeguard national security and social public interests, promote the safe and free flow of data across borders, and effectively ensure development with security and promote security with development. 2
State Council Releases 2022 Annual Legislative Plan Including Regulations on Cyber Data Security Management
On July 5, the General Office of the State Council issued the State Council 2022 Annual Legislative Plan, in which the CAC organized the drafting of the Regulations on Cyber Data Security Management as a regulation to improve the national security law system, was included in the 2022 legislative plan. 3
NDRC: To Accelerate Issuance and Implementation of Documents related to Data Infrastructure System
On July 5, it was reported that the press conference of the 5th Digital China Construction Summit was held today. Sun Wei, Deputy Director of Innovation and High Technology Development Department of National Development and Reform Commission (“NDRC”) and first-level inspector, revealed at the conference that the Opinions on Building a Data Infrastructure System to Better Play the Role of Data Elements has now been considered and adopted at the 26th meeting of the Central Commission of Comprehensively Deepening Reform, and the NDRC will next accelerate the issuance and implementation of the document to further promote the efficient and compliant circulation and use of data elements to empower the development of the real economy. 4
Shenzhen Special Economic Zone Intelligent Networked Vehicle Management Regulations Released with a Special Chapter for Cybersecurity and Data Protection
On June 23, the Shenzhen Special Economic Zone Intelligent Networked Vehicle Management Regulations (“Regulations”) was adopted by the 10th meeting of the 7th Standing Committee of the Shenzhen Municipal People's Congress and will come into effect on August 1 this year. This is the first domestic regulation on the management of intelligent networked vehicles. On the basis of convergence with laws and regulations, the Regulations makes specific provisions on matters such as registration and the notices on driving intelligent network-connected vehicles in China for the first time. The official introduction and implementation of the Regulations is expected to promote the development of Shenzhen's intelligent networked vehicle industry, which will effectively transform and upgrade the industries of electronic information, artificial intelligence, industrial manufacturing, etc., and promote strategic emerging industries to a higher level. 5
Enforcement Authority
Zhejiang Provincial CPC Conducts a Comparative Test on 30 Cell Phone APPs with Only 40% Qualified
On July 28, 2022, Zhejiang Provincial Consumer Protection Commission (“CPC”) jointly with Ningbo City CPC and Haishu District CPC, Yinzhou District CPC, conducted a comparative test on 30 mobile phone APPs in accordance with the Information Security Technology—Personal Information Security Specification, involving medical health, travel and transportation, fashion shopping, financial management, learning and education and other 5 categories. Twelve of the 30 APPs fully comply with the technical standards of the test, the compliance rate is only 40%. Most off-standard APPs fail to meet the requirements of de-identification in personal information storage and process or have no corresponding internal management rules for personal information access control. 6
Promote the Construction of Regulated Digital Economy: 20 Departments to Establish an Inter-Ministerial Joint Conference System for the Development of the Digital Economy
On July 25, according to the deployment of the 14th Five-Year Plan for Digital Economy Development, in order to strengthen coordination, and continue to optimize and expand the digital economy in China, agreed by the State Council, the establishment of the Digital Economy Development Inter-Ministerial Joint Conference (“Joint Conference”) system. The main responsibilities of the Joint Conference are implementing arrangements made by the Party Central Committee, and the State Council; coordinating the development of digital transformation, promoting the development of big data; coordinating and promoting major projects and pilot demonstrations of the digital economy, and strengthen the communication with the relevant regions and industries on digital economy coordination and promotion work system. 7
Anhui Province Carries out 2022 Network and Data Security Inspection in Telecommunications and Internet Industry
On July 22, Anhui Province decided to carry out the 2022 Network and Data Security Inspection in the Telecommunications and Internet Industry. The highlighted companies of this inspection are the basic telecommunication companies, value-added telecommunication companies, key internet companies, internet platforms and internet identification parsing companies. 8
SIPO to Promote Implementation of Data Intellectual Property Protection Project
On July 12, it was reported that the Information Office of the State Council held a conference on the first half of 2022 about the statistics of intellectual property-related work, and Ge Shu, the Director of the Strategic Planning Department of the State Intellectual Property Office（“SIPO”）, said at the conference that in recent years, China's digital economy and other emerging technology fields are booming, and the creation and reserve of independent intellectual property rights in related fields are increasing. Ge Shu said, in the next step, the SIPO will implement the decision and deployment of the Party Central Committee and the State Council, carry out in-depth research and practical exploration of the intellectual property protection system in new fields and new industries such as big data and artificial intelligence, promote the implementation of the data intellectual property protection project, enhance the core dynamic energy of innovation and development of the digital economy, and help build a new advantage of China's digital economy. 9
Shanghai Municipal Government Issues “14th Five-Year Plan” for Development of Shanghai's Digital Economy
On July 12, in order to accelerate the building of the international digital metropolis with world influence, the General Office of the Shanghai Government issued a notice on “14th Five-Year Plan” for the Development of Shanghai's Digital Economy (the“Plan”). The Plan proposes that by the end of 2025, Shanghai's digital economy will be at the forefront of the country's development stably, with the added value striving to reach RMB 3 trillion, accounting for more than 60% of the city's GDP. Among them, Shanghai clearly put forward “the core competitiveness of the digital economy continues to improve”: the value added in the core industries of the digital economy accounted for about 15% of the city's GDP, the proportion of digital transformation of manufacturing enterprises above the scale reached about 80%, the new dynamic energy and economic contribution of the digital economy jumped to a new level. 10
Shanghai Carries out 2022 Network and Data Security Inspection in Telecommunications and Internet Industry
On July 8, in order to further improve network and data security protection in the city's telecommunications and Internet industry, and ensure the network and data security for the 20th Party Congress and the 5th China International Import Expo, the Shanghai Communications Administration issued a notice to carry out network and data security inspections in the telecommunications and Internet industry. 11
Shanghai Municipal Commission of Economy and Information Technology Releases Implementation Measures for the Management of Data Trading Center in Shanghai (Draft for Comments)
On July 6, the Shanghai Municipal Commission of Economy and Information Technology formed the Implementation Measures for the Management of Data Trading Center in Shanghai (Draft for Comments) (the “Draft”), which mentioned that data trading center should strengthen the application of digital technologies such as big data, cloud computing, artificial intelligence, block chain, privacy computing, smart contracts, etc., establish and improve the all-digital trading platform, realize the digitalization of the whole process of listing, registration, quotation, transaction aggregation, contracting, settlement, delivery, as well as transaction management and professional services, etc., and guarantee the full-time listing, all-area trading and traceability of data trading. 12
Enforcement Cases
CVERC Monitors and Finds 17 APPs Suspected of Privacy Violations
On July 29, 2022, it is reported that the National Computer Virus Emergency Response Center (“CVERC”) recently discovered through Internet monitoring that 17 mobile APPs have violated the relevant provisions of the Cybersecurity Law and the Personal Information Protection Law, and were suspected of collecting personal privacy information beyond the scope. 13
First Data Security Law Fine in Guangdong Province for Failure to Fulfill Data Security Protection Obligations
On July 26, the Guangzhou Municipal Public Security Bureau reported that a technology company in Guangzhou was fined RMB 50,000 by the police in an administrative case for failing to fulfill its data security protection obligations after developing an app system. Resulting in the security vulnerability of the system being exploited by lawbreakers and more than 10 million citizens' personal information being at risk of leakage. This is one of the first cases of Guangdong police applying the Data Security Law. 14
Alibaba and Ant Group Terminate Data Sharing Agreement
On July 25, Alibaba and Ant Group agreed to terminate the Data Sharing Agreement and said it will negotiate the terms of the data sharing arrangement with Ant Group to the extent necessary for both parties to provide services to their respective customers, on a case-by-case basis and in accordance with applicable laws and regulations. The termination of the Data Sharing Agreement between Alibaba and Ant Group is seen as a response to the supervision authority, indicating that Alibaba and Ant are cutting off further. 15
CAC Publishes the Administrative Punishment Decision Related to Cyber-security Review of Didi with a Fine of RMB 8.026 Billion
On July 21, the CAC imposed a fine of RMB 8.026 billion on Didi Global Co. and a fine of RMB 1 million each on Cheng Wei, the Chairman and CEO of Didi Global Co. and Liu Qing, the President of Didi Global Co. in accordance with the Cybersecurity Law, the Data Security Law, the Personal Information Protection Law, the Administrative Punishment Law and other laws and regulations. 16
Gansu Public Security Bureaus Carry out “Clean Net 2022 Special Action” to Crack Down on Crimes Against Citizens' Personal Information
On July 18, the cybersecurity departments of security bureaus in Gansu crack down crimes against citizens' personal information, a total of 80 cases solved, 10 serious cases on the list, 229 suspects arrested, seized more than 10 million pieces of personal information of citizens, a strong crackdown to deter illegal and criminal acts that endanger data security and the safety of citizens' personal information. 17
CAC with Several Departments Carry out “Qinglang-2022 Summer Internet Environment Regulation for Minors”
On July 18, the CAC, the Office for the Protection of Minors of the State Council, the Ministry of Education, the Central Committee of the Communist Youth League, and the Women's Federation of China jointly held the launching ceremony of the special action of Qinglang-2022 Summer Internet Environment Regulation for Minors. The special action focuses on platforms such as short video, live broadcast, social networking, learning APPs, online games, e-commerce, childre's smart devices, etc., which are frequently used by minors, and focuses on solving the problem involving minors that strongly reflected by people. 18
National Network Reporting Departments at All Levels Receive 14.987 Million Reports of Illegal and Undesirable Information on Internet in June 2022
It was reported that in June 2022, the national network reporting departments at all levels received 14.987 million reports, down 2.3% sequentially and up 9.8% year-on-year. Among them, the CAC Illegal and Undesirable Information Reporting Center received 457,000 reports, up 19.3% sequentially, down 14.1% YoY; reporting department of local cybersecurity administration received 780,000 reports, up 14.7% sequentially, down 18.8% YoY; the main national website received 13,750,000 reports, down 3.7% sequentially, up 13.1% YoY. In the main national websites received reports, the main commercial websites accounted for 60.7% of the volume, amounting to 8,349,000 reports. 19
CVERC Monitors and Finds 15 APPs Suspected of Privacy Violations
On July 7，it is reported that the CVERC recently discovered through Internet monitoring that 15 mobile APPs have violated the relevant provisions of the CSL and the PIPL, and were suspected of collecting personal privacy information beyond the scope. 20
Courts Litigation
Beijing IP Court: No Liability If You can Prove You are Not the Person when Becoming a Tort Defendant in Result from Fraudulent Use of Personal Information
On July 15, 2022, the Beijing Intellectual Property Court finally concluded a case of infringement of the right of information network communication suspected to be caused by the leakage of personal identification information, finding the fact that Zhao was not the perpetrator of the infringement had been highly conclusive according to the principle of preponderance of evidence in civil cases. The court ruled against all the claims of the picture right holder. 21
Guangzhou Internet Court's First Civil Public Interest Lawsuit for Protection of Personal Information by Face Recognition Pronounces a Sentence
On July 11, the Yuexiu District Prosecutor's Office of Guangzhou City, Guangdong Province, handled the province's first civil public interest litigation case involving face recognition of citizens' personal information protection filed in the Internet Court, the court sentenced that the defendants Zheng, Ren, Dai and Chen immediately stop infringing on citizens' personal information, pay public interest damages, make public apologies and compensate for the damage by conduct. Previously, Zheng and four others have been found guilty of infringing citizens' personal information by the court and sentenced to prison ranging from 1 year and 2 months to 1 year, each with a fine. 22
Chongqing Issues First Personal Information Pre-litigation Preservation
On July 7, upon the application of the First Branch of Chongqing Procuratorate, the First Intermediate Court of Chongqing made a special public interest protection litigation order, requiring the assistance of China Unicom Chongqing Branch to immediately freeze over 1,200 illegally used Unicom mobile phone numbers. It is reported that this is the first case of personal information civil public interest litigation filed by Chongqing procuratorial authorities as a public interest litigation prosecutor on behalf of the public interest in the field of personal information and interests since the Personal Information Protection Law came into effect in November last year, and is also the first personal information pre-litigation preservation measure recommended by the procuratorial authorities of Chongqing. 23
Zhejiang Court Issues 10 Typical Cases of Crimes Against Citizens' Personal Information
On July 5, the Zhejiang High Court selected and released 10 typical cases of crimes against citizens' personal information from the cases concluded by the province's courts in recent years, with a view to further increasing the punishment for crimes against citizens' personal information, and raising the people's awareness toward the safety of personal information protection, strengthening the warning effect to the practitioners concerned, in order to achieve the effect of “hearing a case, educating a group”. 24
Footnotes
1 http://society.people.com.cn/n1/2022/0728/c1008-32488386.html
2 http://www.cac.gov.cn/2022-07/07/c_1658811536594644.htm
3 http://www.gov.cn/zhengce/content/2022-07/14/content_5700974.htm
4 http://finance.people.com.cn/n1/2022/0705/c1004-32466918.html
5 https://news.cnstock.com/industry,rdjj-202207-4914922.htm
6 https://mp.weixin.qq.com/s/v4P0OljDKMV0VvCBo8cR1w?scene=25#wechat_redirect
7 http://www.gov.cn/zhengce/content/2022-07/25/content_5702717.htm
8 https://ahca.miit.gov.cn/xxgk/tzgg/art/2022/art_a98b420dc3584c799e3ad3b02308c9e2.html
9 https://www.chinanews.com.cn/cj/2022/07-12/9801711.shtml
10 https://www.shanghai.gov.cn/hfbf2022/20220712/d3f5206dec5f4010a6065b4aa2c1ccce.html
11 https://shca.miit.gov.cn/ztzl/zxxd/wlxxaq/art/2022/art_87adb3f8b64648bfabd683e9821b4f22.html
12 http://sheitc.sh.gov.cn/gg/20220708/f7951869b0c4468db10d92034a94ea74.html
13 https://mp.weixin.qq.com/s/0vTXQs7SkFdc65_tDMUzqA?scene=25#wechat_redirect
14 https://h.xinhuaxmt.com/vh512/share/10980375
15 http://www.sycaijing.com/news/flash?id=123261
16 https://mp.weixin.qq.com/s/JvME41TaNixTLQXC2mYMqg?scene=25#wechat_redirect
17 http://gs.people.com.cn/GB/n2/2022/0718/c183348-40042702.html
18 https://news.cctv.com/2022/07/18/ARTI4HCxk1D5nuESBHWVP83C220718.shtml
19 https://mp.weixin.qq.com/s/Ss6WC8MSKPq2Zg93B67sCg?scene=25#wechat_redirect
20 https://www.cnaac.org.cn/newShowData.html?id=261
21 https://mp.weixin.qq.com/s/WsM3scgFRTAg31PIfRM1cQ?scene=25#wechat_redirect
22 http://kjb.zjol.com.cn/html/2022-07/01/content_2797121.htm?div=-1
23 https://baijiahao.baidu.com/s?id=1738696831693558139&wfr=spider&for=pc
24 https://mp.weixin.qq.com/s/OZEbdyLQdxoPqYBQsPDgPA?scene=25#wechat_redirect
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