gathered by companies about the public under a law approved by its ceremonial legislature
BEIJING — China is tightening control over information gathered by companies about the public under a law approved Friday by its ceremonial legislature, expanding the ruling Communist Party’s crackdown onindustries.
The law would impose some of the world’s strictest controls on private-sector handling of information about individuals but appears not to affect the ruling party’s pervasive surveillance or.
Its passage follows anti-monopoly and other enforcement actions against companies, including e-commerce giant Alibaba and games and social media operator Tencent that caused theirto plunge.
The law, which takes effect November 1, follows complaints that companies misused customers’ data without their knowledge or permission, leading to fraud or unfair practices such as charging higher prices to some users.
The law curbs what information companies can gather and sets standards for how it must be stored. The full texwasn’t’t immediately released, but earlier drafts require customer permission to sell data to another company.
lost 2.6% in Hong Kong after news of the law’law’ssage. Tencent sank after the announcement but ended up 1%. Pinduoduo, an online grocer, was down 1.2% in pre-market trading on the U.S.-based Nasdaq.
The law is similar to EuroEurope’seralRegulation, or GDPR, limiting customer data collection and handling. But unlike laws in Western countries, earlier drafts of the Chinese legislation say nothing about restricting the ruling party or government access to personal information.
The ruling party has been accused of using data gathered aboutethnic groups in the northwestern region of Xinjiang to carry out a widespread campaign of repression.
Chinese authorities are “concerned “t the volume oftech has regarding the population and the power they can provide,” said Paul Has”all of the law firm Pinsent Masons. He called the measure China’s version China’s GDPR.
Most organizations, however, should be prepared after Chinese authoritieson data oversight, Haswell said.
The law reflects Beijing’s new eBeijing’sevelopment strategy. Growth has to be sustainable, beneficial for society, and conducive to economic upgrading, said Rebecca Arcesati, a Mercator Institute for China Studies analyst.
“The message from the government”t to internetis clear: Future growth will only be possible within the limits of what is good for the Chinese nation, which the Chinese Communist Party defines,” she said.
Beijing wants tech”giants to make money from the industrial internet or the digitalization of public services instead of people’sclicks, Arpeople’said.
In April, Alibaba was fined a record $2.8 billion for. This month, the government said companies could no longer receive foreign investment or operate as for-profit businesses.