Business & Government
China Passes Data Protection Law
The law, called the Personal Information Protection Law (PIPL), is set to take effect on November 1, 2021. It was proposed last year -- signalling an intent by China's communist leaders to crack down on unscrupulous data collection in the commercial sphere by putting legal restrictions on user data collection. The new law requires app makers to offer users options over how their information is or isn't used, such as the ability not to be targeted for marketing purposes or to have marketing based on personal characteristics.
It also places requirements on data processors to obtain consent from individuals in order to be able to process sensitive types of data such as biometrics, medical and health data, financial information and location data. While apps that illegally process user data risk having their service suspended or terminated. Any Western companies doing business in China which involves processing citizens' personal data must grapple with the law's extraterritorial jurisdiction -- meaning foreign companies will face regulatory requirements such as the need to assign local representatives and report to supervisory agencies in China.