China Monthly TMT Update – February 2018


Detailed standards published to guide personal data protection in China

The National Information Security Standardisation Technical Committee (the so-called “TC260”) published the “Information Security Technology – Personal Information Security Specification” (“Specification”) on 24 January 2018. 

Although the nature of the Specification is non-mandatory, it is recommended and the requirements contained therein are considered best practice in China. The Specification sets out detailed requirements concerning the collection, processing, storage and use of personal information. 

Most importantly, the Specification includes a detailed Template Privacy Policy, which provides draft samples for the key sections of a Privacy Policy.

Please click here to read a CMS Law-Now article discussing more details of the Specification.

MIIT issues draft interim regulation on fully automated flights

The Ministry of Industry and Information Technology of China (“MIIT”) issued a draft interim regulation on fully automated flights (“Draft Regulation”) on 26 January 2018 to solicit public opinions.

The Draft Regulation divides the civil unmanned aerial vehicles ("UAV") into five categories, mainly according to the weight, speed and flight height of the UAVs, and allocates different flight airspaces for different categories of UAVs.

The Draft Regulation sets out the qualification requirements for UAV pilots. It also simplifies the current application and approval procedures of flight planning, and exempts certain categories of UAV from the application and approval procedures.

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

CNNIC publishes the 41st statistical report on China’s Internet development in China

The China Internet Network Information Centre (“CNNIC”) published the 41st Statistical Report on China’s Internet Development (“Report”) on 31 January 2018.

According to the Report, up to December 2017, China has 772 million Internet users. The Internet penetration rate reached 55.8%, exceeding 4.1 percent of the global average rate and 9.1 percent of the Asian average rate. The number of mobile Internet users in China reached 753 million. Mobile netizens accounted for 97.5% of the total netizen population, which means the mobile phone has become the center and basis of the Internet of Things.

The number of Internet companies listed in the PRC and overseas reached 102, with an overall market capitalisation of 8.97 trillion RMB. The total market value of Tencent, Alibaba and Baidu accounts for 73.9% of the total market capitalization. 77 “Network Information Unicorn” companies have been established, with most located in Beijing and Shanghai. These companies are defined as companies that exceed 1 billion US dollar in valuation during their latest financing.

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

CAC publishes administrative provisions on information services on microblogs

The Cyberspace Administration of China (“CAC”) issued the Administrative Provisions on Information Services on Microblogs (“Provisions”) on 2 February 2018. The general administrative approach is consistent with several provisions published by CAC in 2017 regulating the operation of subscription accounts, Internet forum and community services.

According to the Provisions, microblog service providers shall hire adequate professionals and possess technical capacities suitable to their respective scale. They shall establish information review systems, information security management and emergency response systems. If a microblog service provider wants to engage in Internet news publication, it must obtain the Internet news information service licence.

Microblog service providers shall execute service agreements with microblog service users to specify their respective rights and obligations. Microblog service providers are responsible for conducting the identity verification and registration process for the users.

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

SAPPRFT issues circular on strengthening the management of live webcast quiz game shows

The State Administration of Press, Publication, Radio, Film and Television of China (“SAPPRFT”) issued the Circular on Strengthening the Management of Live game shows (“Circular”) in February 2018, which aims to regulate the webcast quiz activities.

Live webcast quiz shows are typically hosted via online social network applications or websites. The host asks a series of increasingly difficult multiple-choice questions for players to answers in real time and gain rewards.

According to the Circular, live webcast quiz shows must not include any illegal or inappropriate content. The operators of the online applications or websites must obtain a licence for the distribution of online audio or visual programs. The operators shall also establish information review systems, engage qualified hosts and take full responsibility for the operation of the live show. In addition, operators are prohibited from over-marketing or over publicising the shows.

Please click here to read the major content (Chinese only) of the Circular.