China Monthly TMT Update December 2017

China

MIIT released plan to use 3000-5000MHz for 5G

The Ministry of Industry and Information Technology (“MIIT”) released the plan to use 30005000MHz (middle-frequency band) for 5G systems on 14 November 2017, making China the first country to release the 5G system frequency plan in the middle-frequency band.

According to the plan, 3300-3400MHz should be reserved for indoor use, while 3400-3600MHz and 4800-5000MHz should be used as the working frequency band of 5G systems. It is stipulated that 5G systems shall not use the frequency band to interfere with the legal operation of other activities using the same or adjacent frequency band.

The 5G system is an important information infrastructure for developing a new generation of information and communication technologies. The plan has comprehensively taken into consideration all international and domestic perspectives and the demand for frequencies used for national defence, satellite communications and scientific research departments and industries. The plan also protects the rights and interests of existing users in accordance with the law.

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

Draft industrial standards on e-commerce were published to solicit public comment

The Ministry of Commerce published five draft industrial standards on 21 November 2017 to solicit public opinion. The five draft standards include: the Monitoring Indicators of Online Retail, the Fake Transactions on Online Retail Platform Management Specifications, the Proprietary Trading Services on Online Retail Platform Evaluation and Grading Criteria, the Specification for Quality Inspection Sampling of E-commerce Consumer Goods, and the Specification for Operation of Mobile E-commerce Service Commodity.

The final versions of the draft standards will be suggestive in nature. Although the requirements will not be mandatory, they reflect best practice of the relevant areas.

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

MIIT further regulates the use of domain names

MIIT published a notice on 27 November 2017 to provide further requirements on the use of domain names by internet information services providers (“Notice”).

According to the Notice, if the provider is an individual, the domain name used for the provision of information services must be registered under his/her own name; if the provider is an entity, the domain name used must be registered under the entity’s name, a shareholder’s name or a senior executive’s name. Domain name administrative entities will share with MIIT its database, in order for MIIT to verify whether the requirements under the Notice have been satisfied when it reviews the applications for ICP licences or records.

The Notice does not differentiate between for-profit and non-for-profit operations of information services. As such, the operation of the websites and online platforms should be subject to the requirements of the Notice.

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

China Game Industry Development Report is published

The China Culture & Entertainment Industry Association published the China Game Industry Development Report (“Report”) on 28 November 2017.

During 2017, the overall income of the game industry saw 23.1% growth and reached around RMB 219 billion. According to the Report, the development of the industry has shown the following characteristics: (i) the increase of new users has slowed down; the profit growth has been led by mobile games; (ii) top online game operators have occupied large market shares; costs for SMEs to enter into the market is increasing; (iii) IP has played a more critical role; (iv) e-sports continues to be a popular industry; the value chain is maturing; (v) the scope of outbound investment has expanded from southeast Asia to cover west Asia, Africa, Europe and the US; (vi) more legal requirements have been published to regulate online game operations and player protection; (vii) enforcement against illegal operations has been strengthened.

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

China held the 4th World Internet Conference

The fourth World Internet Conference concluded on 5 December in the east China town of Wuzhen after three days of discussions and exhibitions of cutting-edge internet products. Around 1,500 guests from around the world, including heads of international organizations, leading figures in the internet area, online celebrities, and academics attended this year’s summit.

Forums focusing on AI developments, cooperation in countering cybercrimes, global digital economy, digital silk road, cooperation of major countries in cyberspace, investment trend and FinTech were organised during the conference. Well-known tech companies including Apple, Alibaba and Huawei, released their latest products. Two reports were also issued at the conference, covering the development of the internet around the world and in China respectively. According to the reports, China's digital economy reached 22.58 trillion yuan (about 3.4 trillion U.S. dollars) in 2016, ranking second globally and accounting for 30.3 percent of the national GDP.

Please click here to read more information about the conference.