China Monthly TMT Update November 2017


MIIT publishes guide for the development of key industrial generic technologies

The Ministry of Industry and Information Technology (“MIIT”) published the Guide for the Development of Key Industrial Generic Technologies (“Guide”) on 30 October 2017. The Guide was formulated for the further implementation of the “Made in China 2025” initiative and the research and development of key generic technologies in different industries.

Intelligent technologies have been a focus in all the five main industries covered by the Guide. For example, in the raw material industry, there are big data based technologies for the quality control of steel products, key technologies for the intelligent manufacturing of customised steel, and 3D printing of metals. In the equipment manufacturing industry, there are technologies for intelligent and connected cars. In the electronic information and communication industry, there are technologies for flexible display, virtual reality, intelligent voice and industrial internet platforms.

In the following years, it is likely that the development of the technologies identified in the Guide will enjoy more encouraging policies and support from the government.

Please click here to read the full text (Chinese only) of the Guide.

CAC publishes rules regulating new technologies and applications in online news services

The Cyberspace Administration of China (“CAC”) published the Administrative Provisions for the Security Evaluation of New Technologies and Applications Used in Online News Services (“Provisions”) on 30 October 2017. The Provisions are part of the government’s efforts to strengthen security administration in the online news services sector in accordance with the PRC Cybersecurity Law.

The new technologies and new applications (“NTNA”) refer to innovative applications used for the provision of online news and information services and the supporting technologies. NTNA might include websites, applications, forums, blogs, microblogs, public subscription accounts, instant messaging tools, and online live broadcastings.

Where a new NTNA with public broadcasting characteristics or social mobilisation capabilities is used by an online news service provider, or where the changes of user scale, functionalities, or technical solutions in an NTNA can significantly affect its news characteristics or social mobilisation capabilities, the online news services provider shall conduct a security assessment and report the result to the CAC or its local branches.

Please click here to read the full text (Chinese only) of the Provisions.

CFDA publishes rules governing online food ordering services

The China Food and Drug Administration published the Administrative Measures for the Supervision of Online Food Ordering Services and Food Safety (“Measures”) on 6 November. The Measures will take effect from 1 January 2018.

The Measures require that an operator without a physical store or a food operation licence shall not open a store on an online platform to sell food or engage in other relevant activities. The operator of the online platform is obligated to check the required licences of the store operators residing on its platform and establish effective food safety monitoring mechanisms. The Measures also set out requirements on the food delivery process, which includes provisions on  the personal health of delivery staff and the hygiene of take-out boxes and other delivery tools.

By the end of 2017, the entire online food services market is expected to reach 25 billion EUR. The requirements introduced by the Measures are expected to better regulate the market and provide increased protection to customers.

Please click here to read the full text (Chinese only) of the Measures.

SAIC seeks comments on measures against illegal and dishonest conduct in online transactions

On 14 November 2017, State Administration of Industry and Commerce published the draft Interim Measures for Punishment against Illegal and Dishonest Conduct in Online Transactions to solicit public opinions (“Draft”).

Illegal and dishonest conduct in online transactions is divided into ordinary violations and serious violations. The activities of both online transaction platform operators and operators of online stores will be regulated. Some illegal and dishonest acts  that are unique to online transactions, such as providing misleading or exaggerated information about sales performance, deleting negative customer reviews, and publishing malicious reviews to damage competitors’ goodwill, are specifically targeted by the Draft.  Violators might be recorded in a “black list” that is published to the public. They might also be ordered to shut down online stores or be subject to other technical restrictions.

Please click here to read the full text (Chinese only of the Draft).

MIIT publishes the emergency response plan for cybersecurity incidents

The MIIT published the Emergency Response Plan for Cybersecurity Incidents in Public Networks (“Plan”) on 14 November 2017. This Plan further implements the general principles set out in the PRC Cybersecurity Law and an emergency response plan published by the CAC in June.

According to the Plan, a Cybersecurity Emergency Response Office (“Office”) under the leadership of CAC and MIIT will be responsible for coordinating the relevant sectoral authorities and local authorities to handle public cybersecurity incidents. The Plan divided incidents into four categories (i.e. extremely significant incidents, significant incidents, relatively significant incidents, and ordinary incidents), in accordance with the scope affected (e.g. the amount of leaked users’ information, geographic areas in which users cannot get access to the Internet) and the potential risks involved (e.g. whether top-level domain names and major websites cannot function normally).

After an incident occurred, the relevant internet companies, network operators, and cybersecurity institutions shall immediately report the incident to the local MIIT and the Office. The report shall specify the time of the incident, a preliminary estimation of the affected scope and the risks involved, the remedial measures already taken and other relevant information. Depending on the significance of an incident, the local MIIT and/or the Office will decide the response level (from Level 1 to 4) and instruct the relevant entities to take corresponding measures.

Please click here to read the full text (Chinese only) of the Plan.