China to Use Data Protection to Control Tech Giants

Posted by Arina Gumerova.

This article focuses on the fact that China wants to introduce a law that will protect personal data online because “globally, there has been a push toward more robust rules to protect consumer data and privacy as technology services continue to expand.” So at the moment, China is one of the main technology leaders in the world and is trying to compete with the United States. However, the data protection law could undermine many companies because they have to change their business model and it can cause slow down the development of the industry.

To date, this law has already been adopted in Europe and China is striving to do the same. The reason for this was that many Chinese users began to complain about Internet companies for misusing their personal information. Therefore, the law will now conduct more scrutiny and possible changes to the business models of the Chinese intranet giants.

Another problem is that “The Chinese data protection law contains a section on state agencies processing information.” That is, the state must adhere to the same rules as the company, but there is a lot of controversy about this. Government agents are some of the largest data processors in the country, but in some cases when people give their consent when collecting data, this may be contrary to police investigations by law enforcement. Therefore, this law will be difficult to pass because it has many different sides and it is difficult to please everyone so that no one is left on the sidelines.

Arina is a mathmatical finance major at the Stillman School of Business, Seton Hall University.