Information/Technology - 22. page

China’s National Development and Reform Commission (NDRC) recently announced a draft “Negative List” for a Market Access List (2021 Version), and invited public comments. The draft stated that non-state capital is prohibited from carrying out news and media-related businesses, and from introducing news published by “overseas entities.”

The draft stated that non-state capital shall not engage in the news gathering, editing and broadcasting business, shall not invest in the establishment and operation of news organizations, including but not limited to news agencies, newspaper publishing units, radio and television broadcasters, radio and television stations, as well as online news information gathering and publishing services.

Non-state capital is also not allowed to operate pages, frequencies, channels, columns, or public accounts for news agencies; it shall not engage in the live broadcast business in the areas of political, economic, military, diplomatic, social, cultural, science and technology, health, education, sports and other activities related to the political direction, public opinion guidance and ideologies.

In addition, the draft points out that non-state capital is also not allowed to introduce news published by foreign entities and it cannot hold forums, summits, and awards ceremonies in the field of news media and any public opinion related business.

Source: Central News Agency, October 9, 2021
https://www.cna.com.tw/news/acn/202110090064.aspx

China has been strengthening its overall supervision of cyberspace. On September 15, the Cyber Administration of China (CAC), the country’s top cyber regulator, released the “Opinions on Further Clarifying the Responsibilities of the Online Platform Operators in terms of Information Content.”

The CAC pointed out that the main purpose of releasing the “Opinions” was to focus on different indications of web chaos, and “to ensure that the online platform always adheres to the correct political direction, public opinion guidance and value orientation.”

The “Opinions” gives ten key tasks, including setting up online community rules, the preparation of lists and directories of illegal and unhealthy conduct, the establishment of user credit records and evaluation systems, and the maintenance of records on users’ violations.

The “Opinions” requires the online platforms to improve the content approval mechanism, implement the chief-editor’s responsible system, further expand the scope of manual audits, and establish a dynamic updating mechanism for the database of illegal activities.

Source: Cyber Administration of China, September 15, 2021
http://www.cac.gov.cn/2021-09/15/c_1633296790051342.htm

China’s national data security law went into effect on September 1, 2021. Just days before it became effective, the China State Council’s State-owned Assets Supervision and Administration Commission (SASAC) for Tianjin issued a directive mandating state-owned enterprises in Tianjin to accelerate data migration from cloud services of tech companies like Alibaba and Tencent to the state-owned infrastructure. Currently, Alibaba, Huawei, and Tencent dominate the cloud computing market in China.

In a directive dated August 12, 2021, Tianjin’s SASAC directed state-owned enterprises in Tianjin not to build new data centers, or purchase servers and other storage hardware. State-owned enterprises cannot renew or sign new contracts with cloud platforms owned by Huawei, Alibaba, Tencent, China Unicom, China Mobile, and China Telecom. Data stored in these platforms must be migrated to cloud platforms controlled by SASAC within two months of the expiration of existing contracts, with the final deadline being at the end of September 2021.

Section 3(3)(1) on page 7 of the SASAC directive reads, “The data of state-owned enterprises are state assets and must be put under state-owned assets supervision and administration…”

Since early 2021, local SASACs have started local state-owned cloud platform projects. The essence of “state-owned cloud” is to shift from a cloud platform hosted by a third party to a state-owned cloud built and operated by local state-owned enterprises. In March 2021, Tianjin state-owned cloud started operation, with three state-owned enterprises, including Tianjin Communications Group and Tianjin State-owned Capital Investment and Operation Co., Ltd. In March, the SASAC of Zhejiang Province also initiated a project that included a state-owned cloud platform. In April, SASAC of Sichuan Province officially kicked off its state-owned cloud platform.

Sources:

Lianhe Zaobao, September 4, 2021
http://www.haozaobao.com/shiju/20210904/99713.html

State-owned Assets Supervision and Administration Commission of Tianjin, August 12, 2021
http://www.d1net.com/uploadfile/2021/0827/20210827062000825.pdf

Yicai, September 7, 2021
https://www.yicai.com/news/101166263.html

On August 27, 2021, the Cyber Administration of China, the country’s top Internet regulator, issued a draft version of the “Internet Information Service Algorithmic Recommendation Management Provision.”

“The use of algorithmic recommendation technology … refers to the use of generative or synthetic–type, personalized recommendation–type, ranking and selection–type, search filter–type, dispatching and decision-making–type, and other such algorithmic technologies to provide information content to users.”

The draft version stated, “Algorithmic recommendation service providers shall uphold mainstream value orientations, optimize algorithmic recommendation service mechanisms, vigorously disseminate positive energy, and advance the use of algorithms upwards and in the direction of good.”

“Algorithmic recommendation service providers may not use algorithmic recommendation services to engage in activities harming national security, upsetting the economic order and the social order, infringing on the lawful rights and interests of other persons, and other such acts prohibited by laws and administrative regulations. They may not use algorithmic recommendation services to disseminate information prohibited by laws and administrative regulations.”

“Algorithmic recommendation service providers shall strengthen information content management; they shall establish and complete feature databases to be used to identify unlawful and harmful information”

“Where unlawful information is discovered, transmission shall cease immediately, measures such as deletion shall be adopted to handle it, information spread shall be prevented, and relevant records preserved; and a report shall be made to the cybersecurity and informationization department. Where harmful information is discovered, it shall be dealt with according to online information content ecology management-related regulations.”

“Algorithmic recommendation service providers shall … vigorously present information content conforming to mainstream value orientations in key segments such as front pages and main screens, hot search terms, selected topics, topic lists, pop-up windows, and more.” “The national cybersecurity and informationization department is to establish a categorized and graded management system, to implement categorized and graded management of algorithmic recommendation service providers on the basis of the public opinion properties of algorithmic recommendation services or their social mobilization capability, content categories, scale of users, the degree of sensitivity of data handled in algorithmic recommendation, the degree of interference in users’ activities, etc.”

“The providers of algorithmic recommendation services with public opinion properties or social mobilization capabilities shall conduct a security assessment according to relevant State regulations.”

“Algorithmic recommendation service providers shall cooperate with relevant competent departments carrying out security assessment, supervision, and inspection work according to the law, and provide the necessary technical, data, other data, and support and assistance.”

The Provision also specifies the punishment such as a fine between 5,000 and 30,000 yuan for violating the regulations. “Where an act violating public order management is constituted, public order management punishment is to be imposed according to the law; where a crime is constituted, criminal liability is to be prosecuted according to the law.”

Source: Cyber Administration of China, August 27, 2021
http://www.cac.gov.cn/2021-08/27/c_1631652502874117.htm