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Starting in September, China Will Require a Security Assessment before Data Is Sent Overseas,

According to the Cyberspace Administration of China (CAC), starting in September, an official “security assessment” will be required for data to be sent outside of China. This includes operators who have access to information on over 1 million people or have cumulatively provided information on more than 100,000 people.

The CAC, China’s top cyber regulating agency, announced the Measures on the Security Assessment for Data Export on July 7, 2022. “Data export” refers to the overseas transfer from China of data collected and generated within China, as well as the scenario in which a foreign entity or foreign individual is granted the authority to access any data stored within China.

The Measures prescribe several scenarios in which data processors are required to file an application with the authorities for a security assessment before exporting data. 1) The provision of important data outside the country; 2) Operators of Critical Information Infrastructure (CII); 3) Data processors processing the personal information of more than 1 million individuals; 4) operators that have transferred personal information of a total of 100,000 individuals on a cumulative basis since January 1 of the previous year; 5) operators that have transferred sensitive personal information of a total of 10,000 individuals on a cumulative basis since January 1 of the previous year.

The Measures will come into effect on September 1, 2022. The security assessment result is valid for two years. A data processor is also required to re-submit an application for a government security assessment in certain circumstances, such as where the cross-border data transfer purpose has changed.

Source: Central News Agency (Taiwan), July 8, 2022
https://www.cna.com.tw/news/acn/202207in which080164.aspx

China’s CPI is Calculated Differently from the U.S.

At a press conference on July 15, China’s National Bureau of Statistics announced that the Consumer Price Index (CPI), the key measure of inflation, was 2.3 percent in the second quarter. It was 2.1 percent for both April and May, and 2.5 percent for June. In the U.S., the CPI in June was 9.1 percent, reaching a 40-year high.

The South China Morning Post (SCMP) has reported on why China’s inflation rate has been relatively lower than that of the West. A major reason for China’s lower inflation rate is that the weight of products included in the CPI calculation is very different.

CPI tracks the prices people pay for a “basket” of goods and services. The list of goods is weighted, with those more often bought for daily consumption getting a higher weight.

While China puts more weight on food and clothing, the U.S. values housing and transportation more, the latter being more susceptible to global energy prices.

According to Huang Wentao, an analyst at the China Securities Finance Corporation (CSF), in China’s CPI calculation, the weight of food is about 18.4 percent, while that weight in the U.S. CPI is 7.8 percent; China’s weight for clothing and apparel is about 6.2 percent, while in the U.S. it is 2.8 percent. The rent for housing accounts for 16.2 percent in China’s CPI, and 32 percent in the U.S. calculation. Transportation accounts for 10.1 percent in China, which is much lower than the 15.1 percent in the U.S. counterpart.

Source: Central News Agency (Taiwan), July 15, 2022
https://www.cna.com.tw/news/acn/202207150277.aspx

China: Discrimination against Job Seekers Previously Infected with Covid-19

In Shanghai, China, people who recovered from Covid-19 have hit walls in their job hunting. Some job openings openly state, “Those who were admitted to Covid mobile hospitals are not wanted. Those who previously tested ‘positive’ are not wanted.”

The Shanghai municipal government said to all government branches and all units in Shanghai that all those who have previously tested positive and have recovered should be treated equally and without discrimination.

However, according to the Chinese media Caixin, a number of business owners said that if an employee who already recovered from Covid unfortunately got infected with Covid again, everyone in the company would have to be quarantined for two days and the office spaces would have to be sealed off. This would have a great impact on the normal production and operations. According to Shanghai municipal government’s policy, the company is responsible for preventing the spread of the disease. Once there is an infection, the person in charge of the company has to take the responsibility.

Under China’s “Dynamic zero Covid” policy, even a single case of infection is treated as a total disaster. Even if government officials ask that there be no discrimination, it is still impossible to prevent discrimination against those who have recovered from the disease.

Source: Central News Agency (Taiwan), July 12, 2022
https://www.cna.com.tw/news/acn/202207120282.aspx

China’s Most Restrictive Game Ban

Last year, the Chinese government issued an anti-addiction game ban, stipulating that minors can play online games for no more than three hours a week.

According to the Chinese media Yicai, this is the first summer since the implementation of the game ban, also known as the “most restrictive anti-addiction game ban in history.” Normally the summer vacation in China extends from July 11 to August 31. According to the rules, minors can only play games for one hour between 8pm and 9pm every Friday, Saturday and Sunday. This translates into a total of 21 hours of online games during the whole summer.

According to available data from large gaming companies, the share of corporate revenue made from minors has decreased now that the ban has been in effect for nearly one year.

For example, in Q4 2021, after the implementation of real-name registration and facial recognition, the total game time for minors at Tencent decreased by 88 percent from the same period last year. The total traffic of minors decreased by 73 percent annually.

Knowing that some underage players would play the games using the identity of their parents, Tencent claimed that its facial recognition system will come into play in the summer. All adult accounts suspected of being operated by minors will trigger facial recognition during the login and other sessions and the system will start a “round-the-clock patrol.”

Source: Central News Agency (Taiwan), July 11, 2022
https://www.cna.com.tw/news/acn/202207110218.aspx

Document: Government Sanctioned Forced Adoption of Illegally Born Children

In the past, when China enforced its family planning policy, parents who had children who were born illegally were often fined. A document that recently circulated on the Internet revealed a policy in which a local government office has taken those “illegal” children away  for “rearrangement.” The document, dated July 1 and bearing the seal of the Health Bureau of Quanzhou County in Guangxi province, is an official response to a petition letter filed by a resident who reported a child abduction case.

The Health Bureau of Quanzhou replied that, according to the family planning policy enforced in the 1990s, the Quanzhou county government made the decision to “select” a child for “rearrangement” if the child was born in violation of the laws or regulations and policies on family planning. It ”was made at the request of the higher authorities, including the Guilin city government and the Guangxi provincial government.”

The document stated that the petitioner’s seventh illegally born child was “carried away by the county for social “rearrangement,” and there was no “child trafficking.” No record was kept of the whereabouts of the child.

A lawyer in Beijing said that if the incident involved a joint effort between law enforcement officers and human traffickers, it could be a crime of trafficking of women and children, which carries a maximum sentence of death.

In the past, similar cases have been reported in China. In 2014, China Youth Daily  and in 2011Caixin Magazine  exposed the forced removal of illegally born babies in Dazhou of Sichuan and Shaoyang of Hunan respectively.

To control population growth, China has had a family planning policy since the 1970s, which for a long time allowed only one child to be born to an average family. However, in recent years, as the birth rate has declined, the country has relaxed the policy several times.  In 2021, It shifted toward encouraging people to have three children.

Source: Central News Agency (Taiwan), July 5, 2022
https://www.cna.com.tw/news/acn/202207050238.aspx

Chinese Premier: Prevent Incidents that Break the Moral Bottom Line

On June 27, Chinese Premier Li Keqiang said at an event that, “The population trapped in dire conditions has increased due to the impact of the epidemic and natural disasters.” Li told China’s officials to “detect in a timely manner those people who lost their jobs, those who need to be included in the low-income programs, and those in temporary distress, and prevent the occurrence of incidents that break the moral bottom line.”

Although Li did not specify what the events might be that could “break the moral bottom line,” this is not an often used wording for the premier to use to describe China’s economic difficulties.

Li Keqiang considered that the current economy has recovered to a certain extent, but “the foundation is not yet solid.” He emphasized that, “The unemployment rate should be brought down and controlled as soon as possible.”

The above remarks were made on June 27 when Li Keqiang visited the Ministry of Civil Affairs and the Ministry of Human Resources and Social Security.

Source: Central News Agency (Taiwan), June 28, 2022
https://www.cna.com.tw/news/acn/202206280409.aspxhat

Profit of China’s Local State Enterprises Plunged 22.7 Percent in the First Five Months

China’s Ministry of Finance released the economic statistics of state-owned and state-controlled enterprises for the first five months of 2022. Due to the impact of the epidemic, the profit of local state-owned enterprises dropped by 22.7 percent.

Although the revenue of state-owned enterprises from January to May increased by 9.2 percent over the same period last year, the profit of all state-owned enterprises dropped 6.5 percent. Among them, local state-owned enterprises saw a deep profit dive of 22.7 percent.

As of the end of May, the asset and liability ratio of Chinese state-owned enterprises was 64.3 percent, of which the ratio for central enterprises was 67 percent, and 63.0 percent for local state-owned enterprises.

Source: Central News Agency (Taiwan), June 28, 2022
https://www.cna.com.tw/news/acn/202206280330.aspx

Under Xi Jinping, the Number of Chinese Asylum-seekers Is Increasing. Despite COVID

Figures released by the United Nations’ refugee agency UNHCR showed that around 12,000 Chinese nationals sought asylum overseas in 2012, the year that Xi took office as CCP general secretary. By 2021 that number rose to nearly 120,000.

According to the release of Safeguard Defenders, a human rights NGO based in Madrid, Spain, “By 2019, that figure surpassed 100,000, and despite travel restrictions both in China and worldwide, it continued to increase in both 2020 and 2021. Last year, that figure reached nearly 120,000 people. That is ten times the number of asylum seekers the year Xi came to power.”

“In one year of Xi Jinping’s rule, 2021, China had more asylum-seekers than during the last eight years of the rule of his predecessor Hu Jintao.”

“In fact, since 2012 China has seen some 730,000 people seek asylum. Another 170,000+ persons are living outside of China under refugee status. The number of refugees has held steady for a long time (Many of them are Tibetans living in India).”

Source: Central News Agency (Taiwan), June 18, 2022
https://www.cna.com.tw/news/acn/202206180103.aspx