China passed major data protection law as regulatory scrutiny on tech sector intensifies

China passed a major data protection law setting out tougher rules on how companies collect and handle their users’ information.

Daily Current Affairs Quiz 2021

The Personal Information Protection Law (PIPL) lays out for the first time a comprehensive set of rules around data collection, processing and protection, that were previously governed by piecemeal legislation.

Under the new rules passed by China’s top legislative body, state and private entities handling personal information will be required to reduce data collection and obtain user consent.

It will also prevent companies from setting different prices for the same service based on clients’ shopping history.

The national privacy law 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.