New Delhi/Beijing 28 December : .China is stepping up its fight against Big Tech companies and other international businesses.
The new Personal Information Protection Law, (PIPL), now mandates that global businesses processing information from China to get user consent, and create a data map. According to ZDNet, the Chinese legislation that was in force on last month outlines data processing requirements of companies located outside China.This includes “passing security assessments conducted by state authorities”.
Eileen Yu contributed to this media outlet.
She stated that multinational corporations (MNCs), which move the personal data of the country, will also have to get certification from professional institutions on data protection.
China has been undergoing a massive crackdown against big tech companies, both American and Chinese.
It was designed as a Chinese data protection law.This introduces regulations regarding how data may be stored and collected.The threat of massive fines up to 5% of an organization’s annual turnover.
According to the Chinese government, the law was necessary in order to fix the chaos created by online platforms that had excessively collected personal data.
As with the EU’s General Data Protection Regulation, (GDPR), companies would have to get consent prior to collecting or using customer data under PIPL.
The Chinese law, however, does not consider legitimate purposes or interests as conditions for processing data, but GDPR.
The report stated that “The exclusion from legitimate purposes could lead to MNCs having to obtain consent from all employees in China before they are allowed to process their personal data.”
The new Chinese data protection law will punish violators who fail to follow orders to correct the breach with fines up to 150,000 yuan ($150,000).While the fines for compliance-related violations can range from 10,000 to 100,000 yuan ($1,500), to those responsible for monitoring compliance, the fines are between 10,000 and 100,000 yuan ($15,000).
According to the report, Chinese authorities can also impose fines up to 50,000,000 yuan ($7.5million) on “serious” cases.This is 5% of the company’s previous fiscal year’s turnover.
Several global companies that have still operations in China are now leaving after the introduction of the personal data law.
As China’s regulations became more strict, Yahoo was the latest US-based tech company to close its operations in China.
In November, the firm stated that it had made this decision due to “increasingly difficult business and legal environments” in the country.
Yahoo’s decision follows Microsoft’s October announcement that it would remove LinkedIn, its business-focused social media network, from China.This was also due to “a significantly harder operating environment” and higher compliance requirements.
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