London Daily

Focus on the big picture.
Wednesday, Sep 03, 2025

China passes one of the world’s strictest data-privacy laws

China passes one of the world’s strictest data-privacy laws

China has approved a sweeping privacy law that will curb data collection by technology companies, but that policy analysts say is unlikely to limit the state’s widespread use of surveillance.

China’s top legislative body, the Standing Committee of the National People’s Congress, passed the Personal Information Protection Law at a meeting in Beijing on Friday, according to the state-run Xinhua News Agency.

The law will take effect Nov. 1, Xinhua said. The full text of the final version wasn’t released upon passage.

The national privacy law, China’s first, closely resembles the world’s most robust framework for online privacy protections, Europe’s General Data Protection Regulation, and contains provisions that require any organization or individual handling Chinese citizens’ personal data to minimize data collection and to obtain prior consent.

However, unlike in Europe, where governments face more public pressure over data collection, Beijing is expected to maintain broad access to data.

Though the new privacy rules could allow China’s central government to control how lower-level agencies use and share data, nothing suggests "anything resembling legal limits on government surveillance," said Karman Lucero, a fellow at the Yale Law School Paul Tsai China Center.

"Chinese civil society still has very limited means of ‘watching the watchmen,’ " he added.

China’s new privacy framework comes as frustration grows within the government and in Chinese society over online fraud, data theft and data collection by domestic technology giants. For years, loose rules on accessing data allowed domestic companies to quickly develop and adopt new products and technology, but also fueled a black market for consumer data.

The new privacy law is part of a tighter regulatory regime for Chinese tech companies. Over the past year, Beijing has clamped down on the tech sector on matters including data security and anticompetitive practices, for example imposing a multibillion-dollar fine on Alibaba Group Holding Ltd. for forcing vendors to sell exclusively on its e-commerce platform—a practice that used to be par for the course in China’s winner-takes-all market.

After several years in which tech companies largely had free rein to access consumer data, the new privacy law is a "sign of the market maturing," said Neil Liang, co-founder of The CareVoice, a Shanghai-based tech startup, who has been following changes in the regulatory landscape for tech companies’ user data policies.

Costs will likely increase, as tech companies must dedicate more resources to compliance, similar to what his firm had to do to adapt to Europe’s GDPR framework a few years ago, said Mr. Liang.

Chinese President Xi Jinping in a March 2020 file photo. China’s new privacy law, which unifies previously piecemeal legislation on personal information protection, also tackles a number of concerns that have come to light in recent years, such as th


But the new rules could also provide new opportunities for third parties who help companies with data management, he added.

China’s new privacy law, which unifies previously piecemeal legislation on personal information protection, also tackles a number of concerns that have come to light in recent years, such as the proliferation of facial recognition.

In urban residential compounds around China, where cameras equipped with facial-recognition technology are used to verify residents and visitors, complaints from tenants have spurred local governments to take action, such as banning the collection of biometric data without consent. Last month, China’s highest court instructed building managers to offer alternatives for residents who don’t want to submit to facial recognition.

According to the latest draft of China’s privacy law, facial recognition cameras installed in public places must be marked with prominent alerts and only be used to maintain public security.

The new law will also seek to address the issue of algorithmic discrimination, which has drawn increasing public concern, especially in cases where online platforms offer different prices to different users based on their online behavior.

The latest draft, which requires automated decision-making to be transparent and fair, also instructs companies to give individuals the option to opt-out of personalized marketing.

Violating the new privacy law could come at a high cost for companies. Illegal activities that are considered serious could result in a fine of up to $7.7 million, or up to 5% of the preceding year’s business income, according to the law’s latest draft.

If companies are compliant with Europe’s GDPR, "they are going to be fine complying with the Chinese privacy law," said Alexa Lee, senior manager of policy at the Information Technology Industry Council, a Washington-based trade association of high-tech companies.

But national security-related provisions in the law, such as one enabling the blacklisting of overseas data handlers who endanger China’s national security or public interest, could be driven by considerations unrelated to privacy, such as U.S.-China relations, she said. "That is an area companies can’t predict and they cannot control."

Separately, Chinese regulators on Friday also published new rules requiring companies that process auto data to enhance data security and protect personal information collected from vehicles. The rules require important data, including sensitive military and government locations, to be stored in China, and also set principles for reducing unnecessary collection and sharing of data.

The new rules on auto data, published by five Chinese ministries led by China’s cyberspace authority, will take effect on Oct. 1.

Newsletter

Related Articles

0:00
0:00
Close
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Court of Appeal Allows Asylum Seekers to Remain at Essex Hotel Amid Local Tax Boycott Threats
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Pickles are the latest craze among Generation Z in the United States.
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
WhatsApp is rolling out a feature that looks a lot like Telegram.
Investigations Reveal Rise in ‘Sex-for-Rent’ Listings Across Canada Exploiting Vulnerable Tenants
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
×