LONDON: Chinese authorities, businesses, and consumers have long grappled with the impact of emerging technologies on the protection of personal data.
Baidu Inc. Chairman and Chief Executive Robin Li speaks in Wuzhen town of Jiaxing, Zhejiang province, China, December 17, 2015. Personal data regularly leak from businesses and government databases; surveys report that 85 per cent of Chinese consumers have been affected by data breaches - which include leaked bank account information, social media details, and illegally sold phone numbers.
This regulates how organisations should protect digital information, and outlines measures to safeguard Internet systems, products and services against cyberattacks.Called the “Personal Information Security Specification” – or simply the “Specification” – it is the country’s most comprehensive document to date on the protection of personal data, effectively constituting a best practice guide for the collection, processing, and sharing of sensitive information.
Organisations must formulate a contingency plan for all security incidents involving personal information, and must meet additional requirements for access controls, third-party assessments, user breach notifications, and cross-border transfers. Expectations of control over third-parties that have access to such data have also been raised - requiring a full legal contract between the controller and processor, a full risk assessment, and constant monitoring. The controller is encouraged to complete regular audits of third-party code, scripts, or any other tool involved in data processing.
Though consent is a core principle behind the Chinese approach, drafters seem to have sought to moderate these rules to avoid undermining prospects in data-intensive developing fields like artificial intelligence and e-commerce, crucial sectors that will drive China’s economy.
As global legislation begins to shape operations in major markets, US companies are becoming increasingly reactive in fashioning solutions for international compliance. Legal ramifications for violating the CSL can include rectification orders, fines of up to 1 million yuan, and the revocation of operational licenses. Those directly responsible for breaches or leaks above a certain threshold may face up to seven years imprisonment.
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