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Current Affairs

China’s new data privacy laws

Date: 24 August 2021 Tags: IT, Mobile & Computers

Issue

China has passed a new data protection law regarding collection and handling of customer data by companies.

 

Background

The law has introduced stricter measures that are part of Beijing’s new agenda of controlling operations of private companies.

 

Details

  • New rules have been set up regarding collection of data, processing and protecting it under the Personal Information Protection Law (PIPL).

  • The new law does not do enough to prevent surveillance of users but it may have large impact on working of technology giants.

  • The law has been framed based on Europe’s General Data Protection Regulation, which is considered the most robust privacy protection framework.

  • The prior consent of the individual will be needed if personal data of Chinese citizen is being collected by any individual or organization.

 

 The legislation

  • The firms collecting data will have to take consent of the user and subsequently reduce the amount of data that will be collected.

  • The Chinese government is accused of using data collected by big techs to suppress dissent in its northwestern Xinjiang province.

  • The law also stipulates companies against transferring data of Chinese citizens to countries having lower data protection standards than China.

  • Companies that do not comply with the new laws will be fined 50 million yuan or about 5 percent of their turnover.

 

The start

Many government associations had accused companies of violating rights of customers by misusing personal data and promoting their own products.

 

Data protection laws across the world

  • General Data Protection Regulation of Europe has been an example of customer data protection. It gives customers more rights over their data.

  • These laws not only apply to companies located in EU but also to others who offer goods or services to, or monitor the behaviour of, people in the bloc.

  • Users can find out where their personal data is being stored and to what purpose it is being used. They can also demand right to be forgotten for getting rid of it permanently.

  • Lei Geral de Proteção de Dados of Brazil is Latin America’s first major data protection law. It is also similar to European law.