China Monthly TMT Update – January 2020

CAC Seeks Public Comments on the Administrative Measures for Release of Information on Cyber Security Threats

The Cyberspace Administration of China (CAC) issued the Draft Administrative Measures for Release of Information on Cyber Security Threats for public comments on 20 November 2019.

Under the Measures, cyber security threat information refers to (i) information used to describe the purposes, methods, tools, processes and results of an activity that may threaten the normal operation of a network; and (ii) information that may expose the vulnerability of a network. The following types of cyber security threat information are prohibited from being released: source code and development methods of malicious programs; programs and tools designed to be used in network intrusive activities; details that fully describe the occurrence and processes of cyber attacks; content of the data subject to attacks; design, topology structure, source code of the network concerned and the types and specifications of the devices concerned; cyber security risk assessment report and protection plans of specific networks; and other information that can be directly used to endanger the normal operation of networks. Before releasing certain types of cyber security threat information, the local cyber security authorities and the relevant network operators must also be notified.

The Measures aim to prevent or mitigate the risks that the inappropriately released cyber security threat information (e.g. information with unnecessary details or improper scope) might be manipulated by illegal attackers and bring further threats to the overall cyber security.

Please click here for the full text (Chinese only) of the latest draft.

MIIT Invites Public Comments on the Development Plan for the NEV Industry (2021-2035)

The Ministry of Industry and Information Technology (MIIT) issued the draft Development Plan for the New Energy Vehicle Industry (2021-2035) for public comments on 3 December 2019.

According to the Plan, it is a long term vision that, in the next 15 years, battery electric vehicles (BEVs) will go mainstream, fuel cell vehicles (FCVs) will be commercialized, and vehicles used for public purposes will all be electricity-powered.

The Plan rolls out measures to deepen the research and development for three vertical fields (i.e. FCVs, BEVs and hybrid electric vehicles (HEVs)) and three horizontal fields (i.e. the hybrid control unit (HCU), the motor drive system and its control unit, and the battery and battery pack management system). The draft plan also inspires enterprises in new energy vehicles, energy, transportation and information and communication sectors to realize synergy with each other.

For foreign companies, market entry will be further expanded. There will be full implementation of national treatment plus negative list management system. The mutual recognition of international and Chinese standards will be promoted.

Please click here for the full text (Chinese only) of the latest draft.

MOT Promotes Deep Integration of Big Data and Integrated Transport

The Ministry of Transport (MOT) issued the Outline of the Program on Boosting the Development of Big Data on Integrated Transport (2020-2025) on 9 December 2019.

According to the Outline, by 2025, the framework of big data standards for integrated transport will be made more thorough, and large-scale and systematic big data sets concerning infrastructure and conveyances will be created. Big data security measures will be improved. The 5G technology and other applications in various fields of transportation will be promoted.

The Outline lays down key tasks in five aspects, including consolidating the foundations for big data development, deepening the sharing and openness of big data and fully promoting the innovative application of big data, etc. Twenty-one specific measures are announced to improve the information resource catalogue system, facilitate the transformation of the digital industry, and boost the digital development of freight logistics.

The Outline encourages the innovative application of traveling services, new mode of mobility as a service and using data to match traveling demands and service resources, and analyse and evaluate the characteristics of the development of new and old business forms.

Please click here for the full text (Chinese only) of the Outline.

Face Payment Related Industry Standards are being Developed

At the end of 2019, the users of face payment was expected to reach 118 million. By 2022, the user number is estimated to exceed 760 million, and face payment will replace scan payment to become the main payment method.

Recently, the National Standard Working Group on Face Recognition Technology, which is composed of 27 institutions including Ant Financial Services, was formally established in China. It will mainly focus on personal data management specifications, technical specifications, interface specifications and other aspects to formulate technical standards in the facial recognition field. The Working Group will work under the general framework established by the Financial Technology (FinTech) Development Plan (2019-2021) (which was issued by People’s Bank of China in September 2019), further explores offline payment security applications for face recognition, as well as the possibility of building a transfer and settlement model with facial features as routing identifiers.

Please click here for the full text (Chinese only) of the policy.

Three Authorities Issued the Administrative Provisions on Online Audio-visual Information Services

On 18 November 2019, three authorities including the Cyberspace Administration of China (CAC) jointly issued the Administrative Provisions on Online Audio-visual Information Services, which will take effect from 1 January 2020.

The Provisions focus on the application of deep learning and virtual reality technologies in the operation of audio-visual services.

If such technologies are used in any audio-visual services with media or social mobilization attributes, the operators are required to conduct security assessments in accordance with relevant state regulations. If such technologies are used to produce any artificial audio-visual programs or contents, clear marks shall be attached to distinguish them from real ones. Audio-visual service operators shall not use such technologies to produce or distribute false news or other illegal information, and shall also improve the capability to identify, monitor and stop the distribution of such information on their platforms.

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