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China has passed major data protection legislation amid increased regulatory oversight

Chinese mobile phone users in Shanghai. China has passed the Personal Information Protection Act (PIPL) for the first time, which sets out a comprehensive set of rules regarding data collection.

Chi Yang | Moment | Getty Images

Guangzhou, China — China passed major data protection legislation on Friday, setting stricter rules on how businesses collect and process user information.

This rule adds to Beijing’s tightening of regulations, especially on data, and could affect how China’s tech giants operate.

The Personal Information Protection Act (PIPL) is the first to set out a comprehensive set of rules regarding the collection, processing and protection of data, previously governed by fragmented legislation.

After several drafts, the PIPL was passed by the Chinese Parliament on Friday. According to state media.. However, the final version of the law has not yet been released.

Earlier draft of the law The data collector needs to obtain the user’s consent to collect the data, and the user can revoke that consent at any time, he said. Companies that process data cannot refuse to provide services to users who do not agree to collect the data. However, unless that data is required to provide the product or service.

There are also strict requirements for transferring data from Chinese citizens abroad.

Companies that violate the rules may be fined.

Beijing strengthens technology scrutiny

PIPL will come as regulators’ scrutiny of Chinese tech companies increases. With PIPL, China has tightened data regulations along with national cybersecurity and data security laws.

Kendra Schaefer, a Beijing-based partner of Trivium China consultancy, said:

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https://www.cnbc.com/2021/08/20/china-passes-key-data-protection-law-as-regulatory-scrutiny-increases.html China has passed major data protection legislation amid increased regulatory oversight

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