China Monthly TMT Update January 2018

China

China publishes the three-year action plan for AI development

The Ministry of Industry and Information Technology (“MIIT”) published the Three-Year Action Plan to Encourage the Industrial Development of the New Generation of AI (“Action Plan”) on 14 December 2017.

The Action Plan identifies the key areas of AI development between 2018 and 2020, which include intelligent vehicles, service robots, drones, medical image aided diagnosis systems, video and image identification systems, voice interaction systems, translation systems, smart home products, intelligent sensors, neural network chips, and open source platforms. In each area, the key technologies and applications involved are also specified.

AI development is considered as a critical catalyst of the “Made in China 2025” initiative. The government will formulate more encouraging policies and economic incentives to support the AI development in China.

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

New standards are published to guide barcode payment business

It is reported that China's mobile payments hit a total of USD 5.5tn during 2016 and the growth continued in 2017. Most of the payments are conducted by scanning a barcode. To regulate the use of barcodes in mobile payment business and to protect the finance security of users, the People’s Bank of China published the Standards for Barcode Payment Business (Trial) (“Standards”) on 27 December 2017.

The Standards reemphasise the qualification requirements for the operators of barcode payment business, set out the classification of payment verification capabilities and the relevant requirements, specify the requirements for obtaining true identifications of both individuals and entity users, and provides the general standards concerning the use of barcodes and protection of personal information.

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

China publishes guidelines for the standardised construction for intelligent vehicles

The MIIT and the Standardisation Administration of China jointly issued the Guidelines for the National Intelligent Connected Vehicle Industry Standard Construction (Intelligent Connected Vehicle) (2018) (“Guidelines”) on 29 December 2017.

According to the Guidelines, more than 30 and 100 standards will be formulated by 2020 and 2025 respectively to support the industry development from driving assistance to high-level automation. Information perception and decision control are the two key factors of connected intelligent vehicles. As to the physical structure of the products, key factors include functionality/application, software/platform, network/transmission, device/terminal, and foundation/general basis. Standards will be formulated to address the main technical issues in each key factor. The Guidelines also include a list identifying the specific standards that are now in plan or will be formulated in the near future.

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

NDRC issues draft strategy for the development of intelligent vehicles

The National Development and Reform Commission (“NDRC”) issued a draft Strategy for the Innovation and Development of Intelligent Vehicles (“Draft Strategy”) on 5 January 2018 to solicit public opinions.

The Draft Strategy identifies the development of intelligent vehicles as an inevitable trend of the Chinese automotive industry. By 2025, the regulatory regime governing intelligent vehicles should be well established; the “people-vehicle-road-cloud” coordination system and 5G-V2X communication networks should be ready to support the application of intelligent vehicles on a large scale.

In order to achieve the objective, the main strategies include encouraging independent and controllable technology innovations, creating a cross-sector ecosystem for the intelligent vehicle industry, building comprehensive road and network facilities, formulating regulations and technical standards, imposing necessary quality and safety controls, and protecting information and date security. The government will implement more encouraging and supportive policies to facilitate the development of the industry.

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

Foreign investment bans in the entertainment sector are further lifted in free trade zones

The State Council published a new regulation on 9 January 2018, which lifted the bans on foreign investment in the free trade zones in China. Among others, there are major developments in the entertainment sector.

Now in the free trade zones, foreign invested entities (with certain restrictions on investment ratios) are allowed to engage in the printing business, and to operate travel agency business for approved overseas destinations (excluding Taiwan). Wholly foreign owed entities are allowed to operate entertainment venues, and to provide performance agency services within the province where it is registered. The relevant government authorities will formulate implementation rules to guide the practice in the free trade zones.

Please click here to check the other bans lifted by this regulation.

More cybersecurity standard drafts are published to solicit public opinions

The National Information Security Standardization Technical Committee published a few new draft cybersecurity standards on 19 January 2018 to solicit public opinions.

The drafts covers risk assessment specification for information security, guidelines for grading of classified cybersecurity protection, type and code of cybersecurity special products, requirements for bodies providing audit and certification of information security management systems, and a few other aspects concerning cybersecurity products and services. The public will have until 5 March 2018 to submit comments and opinions.

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