China Technology, Media and Telecom: Bi-monthly Update - July & August 2023 Issue
Written By
Legal Director
China
I am a Legal Director based in Hong Kong and lead the China data protection and cybersecurity team.
Associate
China
I am an associate in Privacy and Data Protection practice in our Beijing office. My practice focuses on data privacy, cybersecurity, telecommunications and M&A.
Related
Practices
Sectors
Regions
Countries
Offices
This newsletter summarises the latest developments in technology, media, and telecom in China with a focus on the regulatory, enforcement, and industry developments in this area.
If you would like to subscribe for our newsletters and be notified of our events on China technology, media, and telecom, please contact James Gong at [email protected].
Follow the links below to view the official policy document on the People’s Republic of China Government websites.
Legislative Developments
1. Cyberspace Administration of China and six other departments jointly announced Interim Measures for Management of Generative Artificial Intelligence Services
On 13 July, the Cyberspace Administration of China (the “CAC”) released the Interim Measures for the Management of Generative Artificial Intelligence Services (the “AI Measures”), in conjunction with the National Development and Reform Commission (the “NDRC”), the Ministry of Education, the Ministry of Science and Technology (the “MST”), the Ministry of Industry and Information Technology (the “MIIT”), the Ministry of Public Security, and the National Radio and Television Administration (the “NRTA”). The AI Measures have taken effect as of 15 August 2023.
The AI Measures aim to promote the healthy development and standardised application of generative AI technology. They emphasise maintaining a positive and prudent approach when implementing classification and grading supervision, while encouraging independent innovation and international cooperation in the field of generative AI technology. The main focus of these measures is on the obligations of generative AI service providers, including:
- Processing training data in accordance with the law.
- Establishing clear and lawful labelling rules and adhering to them during the R&D process of generative AI technology.
- Assuming the responsibilities of network information content producers and fulfilling relevant obligations in accordance with the law.
- Taking effective measures to prevent minors from becoming dependent on or addicted to generative AI services.
- Fulfilling obligations to protect users' input information and usage records, refraining from unlawfully collecting, storing, or providing them to others.
- Promptly taking action to rectify and report any illegal content to the relevant authorities when discovered.
2. State Council and Central Military Commission released Interim Regulation on Administration of Flight of Unmanned Aircrafts
On 28 June, the State Council and the Central Military Commission released the Interim Regulation on the Administration of the Flight of Unmanned Aircrafts (the "Unmanned Aircrafts Regulation"), which will come into effect as of 1 January 2024. The Unmanned Aircrafts Regulation consists of 63 articles in six chapters, establishing a comprehensive management system for the design, manufacturing, and operation of unmanned aircrafts. The Unmanned Aircrafts Regulation adopts a classified management approach and aims to enhance airworthiness management and quality control throughout the design, manufacturing, maintenance, and assembly processes of unmanned aircrafts. It introduces a system for product identification numbers and real-name registration for owners, while also specifying the qualification requirements for entities that utilise unmanned aircrafts and its operators. Furthermore, the Unmanned Aircrafts Regulation includes provisions concerning the administration of flight activities and airspace. It also establishes a system for flight activity applications and outlines specific rules governing flight activities.
3. MIIT released revised Regulation on Allocation of Radio Frequency
On 28 June, the MIIT released a revised version of the Regulation on the Allocation of Radio Frequency, which came into effect on 1 July. Through these updated rules, China has become the world's first country to allocate either all or a portion of the 6425 - 897125MHz frequency band for International Mobile Telecommunications services. The allocation of the 6GHz frequency band provides ample mid-band spectrum resources to foster the development of 5G and 6G technologies, while leveraging the advantages of the existing mid-band 5G global industry.
4. MIIT released Announcement on Launching and Promoting New Type of Network Access Permits
On 29 June, the MIIT released the Announcement on Launching and Promoting the New Type of Network Access Permits. The new digital network access permits have been put into use since 1 July and are gradually phasing out the existing paper-based ones. Starting from 1 January 2024, the digital permit will be the sole option available, although the paper permits issued previously will remain valid for their designated duration. In accordance with the relevant regulations, manufacturers are required to affix the permit on telecom devices that have obtained network access.
On 15 June, the NRTA released two industry standards that had successfully undergone the review by its Standardisation Technical Committee. These standards are the Technical Quality Requirements and Measurement Methods for Audio and Video of Digital Cable Television and the Technical Quality Requirements and Measurement Methods for Audio and Video of IPTV. The Technical Quality Requirements and Measurement Methods for Audio and Video of Digital Cable Television specifies the audio and video formats for cable digital television systems, as well as the technical quality requirements and measurement methods for transmission channels, code streams, services, and subjective assessment. Similarly, the Technical Quality Requirements and Measurement Methods for Audio and Video of IPTV provides specifications for the technical quality requirements and measurement methods of IPTV transmission channels, code stream layers, and audio and video components, while outlining the requirements for service quality and subjective assessment methods.
On 30 June, the State Administration for Market Regulation (the "SAMR") released the revised Provisions on Prohibiting the Abuse of Intellectual Property Rights to Exclude or Restrict Competition, which came into effect on 1 August 2023. The updated rules aim to 1) expand the scope for the "abuse of intellectual property rights to exclude or restrict competition"; 2) enhance the mechanism for determining the exercise of intellectual property rights in committing monopolistic conduct; and 3) reinforcing the regulation of both typical and special monopolistic conduct in the realm of intellectual property.
7. SAMR released Anti-monopoly Guidelines in Field of Standard-Essential Patents (Draft for Comments)
On 30 June, the SAMR released the Anti-monopoly Guidelines in the Field of Standard Essential Patents (Draft for Comments) (the "SEP Anti-monopoly Guidelines"). The SEP Anti-monopoly Guidelines cover various areas, including: 1) clarifying information disclosure requirements during the standard-formulation process; 2) emphasizing fairness, reasonableness, and non-discrimination principles in licensing commitments; 3) providing clarity on procedures and requirements for conducting good faith negotiations; 4) outlining methods for determining dominant market position involving SEPs; 5) listing key considerations for identifying abusive use of SEPs, such as unfairly high prices and tie-in sales; 6) offering guidance for the assessment of injunctive remedies; and 7) addressing issues related to SEPs involving the concentration of operators.
On 19 June, the SAMR released the Anti-monopoly Compliance Guidelines for Concentration of Business Operators (Draft for Comments) (the "Concentration Guidelines"), marking China's first compliance guidance in this area. The Concentration Guidelines cover various aspects, including determining controlling rights in minority interest acquisitions, calculating turnover, filing requirements for phased transactions, establishing a compliance management system, and introducing a compliance incentive mechanism.
9. SAMR released Interim Guidelines on Business Practices for Blind Boxes
On 8 June, the SAMR released the Interim Guidelines on Business Practices for Blind Boxes (the “Blind Box Guidelines”). The Blind Box Guidelines focus on regulating four key aspects within the blind box industry. They include the establishment of a negative list for prohibited items, clarifying information disclosure requirements, encouraging the implementation of spending caps and purchase limits, and improving protection measures for minors. The Blind Box Guidelines aim to set clear boundaries for the industry and promote compliance and governance among blind box operators.
On 6 June, the CAC issued the Provisions on the Management of Close-range Mesh Network Information Services (Draft for Comments) (the "Mesh Network Provisions"). According to the Mesh Network Provisions, close-range mesh network information services are the services that involve the exchange and dissemination of information through networks created using technologies such as Bluetooth and Wi-Fi. The Mesh Network Provisions detail the responsibilities and obligations of service providers and users. Providers must implement security management systems and technical measures, while users are prohibited from distributing or transmitting illegal information.
11. CAC released 12th batch of names and filing numbers for blockchain information servicesOn 12 July, the CAC issued the 12th batch of names and filing numbers (a total of 120) for blockchain information services in the Chinese mainland, in accordance with the Regulation on the Administration of Blockchain Information Services. Notably, 58 of these services are based in Beijing.
Enforcement Developments
12. National People's Congress Standing Committee to enhance law enforcement against deepfake scam
During a news conference held by the National People's Congress Standing Committee in Beijing on 27 June, Zang Tiewei, the spokesperson for the country's top legislature, addressed concerns regarding the fraudulent use of AI-powered face-swapping technology to create synthetic videos. Zang highlighted that this new form of AI-driven fraud is fundamentally similar to traditional fraudulent acts and shall be subject to criminal liability in accordance with the Anti-Telecom and Online Fraud Law and the Criminal Law.
13. Ministry of Transport conducted regulatory talk with online car rental platforms
On 26 July, the Ministry of Transport (the “MOT”) conducted a regulatory talk with various car-hailing platforms, including Didi and Gaode. During the talk, the MOT highlighted concerns regarding certain platforms and companies that engage in problematic practices such as arbitrarily modifying operating regulations, infringing upon the rights and interests of passengers and drivers, and disrupting market order. These behaviours not only introduce uncertainty and potential risks to the industry's operation but also contribute to safety incidents. The MOT emphasised the importance of maintaining market order, ensuring that enterprises fulfil their main responsibilities, and protecting the legitimate rights and interests of drivers and passengers.
14. SAMR to address issues in advertising regulatory practices
On 19 June, the SAMR released the Notification on Addressing Issues in Advertising Regulatory Practices (the "Advertising Notification"). The Advertising Notification urges to standardise and streamline the review of advertisements for food supplements, food for special medical purposes, pharmaceuticals, and medical devices. It also emphasises the need to strengthen supervision and monitoring while continuously enhancing the safety management of advertising monitoring data.
15. SAMR launched special action to optimise platform agreement rules
On 15 June, the SAMR launched a five-month special action to optimise platform agreement rules. The primary objective is to encourage platform enterprises to adhere to existing laws and regulations while improving and refining the rules governing platform agreements to effectively safeguard the legitimate rights and interests of consumers, platform operators, and platform enterprises. The special action encompasses four distinct stages: mobilisation and deployment, platform self-examination, local guidance and rectification, and assessment conducted by the SAMR.
On 27 June, the Beijing Municipal Administration for Market Regulation (the "Beijing MAMR") exposed several illegal cases in live broadcast marketing, among which seven companies had been punished for fake advertising and price fraud. This is part of the efforts in an ongoing special law enforcement campaign aimed at combating fraudulent and illegal advertisements online, particularly within the realm of live streaming marketing. The primary objective of this campaign is to crack down on illicit practices in live streaming sales and safeguard the legitimate rights and interests of consumers.
In the cybersecurity protection level determination and filing program implemented by the Jiangxi Provincial Communications Administration (the “Jiangxi CA”), telecoms operators are obligated to submit their level determination information to the appropriate system to complete the filing process within 30 days of receiving the level determination results. On 28 June, the Jiangxi CA published a list of six enterprises that had failed to submit the required materials within the designated timeframe. These enterprises are now required to submit the necessary information within the specified time limit; failure to do so will result in penalties in accordance with the law.
18. Hubei Provincial Communications Administration released cybersecurity protection level determination for industrial Internet and Internet of Vehicles enterprises in the provinceOn 25 July, the Hubei Provincial Communications Administration (the “Hubei CA”) led an expert team to review the cybersecurity protection level determination filing information submitted by industrial Internet platform enterprises, industrial Internet identifier resolution enterprises, and Internet-of-Vehicles service platform operators within the province. A total of 68 companies were included in the review, and 54 of them were found to have failed to implement relevant requirements. The Hubei CA required them to complete the rectification by 23 August 2023. Failure to comply or posing a risk to cybersecurity will lead to regulatory talks or administrative penalties.
Industry Developments
On 30 June, the Advertising Supervision Department of the SAMR and the China Economic Information Service of Xinhua News Agency jointly released the Index Report on the Development of China's Advertising Industry (2022). This report offers a quantitative evaluation of China's advertising industry across five key dimensions, namely overall situation, industry strength, industry environment, social efficiency, and economic performance. Its findings serve as a valuable reference for businesses and regulatory authorities alike. According to the report, the development of China's advertising industry in 2022 exhibited a generally stable and resilient trajectory.
On 24 July, the People's Government of Shanghai Pudong New Area released the Three-Year Action Plan for the High-Quality Development of the Intelligent and Connected Vehicles Industry in Pudong New Area (2023 - 2025) (the “Pudong ICVs Plan”). The Pudong ICVs Plan aims to transform Pudong New Area into a leading centre for innovation and development in the ICVs industry by 2025. It sets forth a series of objectives including technological breakthroughs, the establishment of a robust industry ecosystem, the promotion of large-scale adoption, the expedited development of infrastructure, and the implementation of a comprehensive legislative framework to support the ICVs industry in Pudong New Area.
On 3 July, the Shanghai Municipal Commission of Economy and Information Technology, along with other authorities, issued the Action Plan for Promoting the High-Quality Development of Industry Internet Platforms in Shanghai (2023 - 2025). The plan focuses on fostering the growth of industry internet platforms, which are innovative business models utilizing technologies such as the Internet, big data, blockchain, and artificial intelligence to provide valuable services such as information matching, trade facilitation, digital supply chain, and logistics support to real enterprises along the industry value chain. The plan outlines several key tasks to be undertaken:
- Prioritizing vertical service platforms in key industries like electronic information, pharmaceutical supply, equipment and apparel, and automotive services.
- Facilitating the growth of digital service platforms for industrial products in terms of product types and volumes.
- Enhancing the technological capacity and innovation capability of industrial internet platforms.
- Leveraging the advantages of digital service platforms and utilizing industry data effectively.
- Promoting the development of cross-border industry digital service platforms.
On 19 June, the General Office of the State Council issued the Guiding Opinions on Further Building a High-Quality Charging Infrastructure System to support the development of the new-energy vehicle industry and work towards the goal of reaching carbon neutrality. According to the document, China's charging infrastructure still faces major challenges. To address these issues, it emphasises the need to expedite the construction of a high-quality charging infrastructure system, enhance the network's optimisation, accelerate development in key areas, and elevate the level of operation and service. Furthermore, it underscores the importance of strengthening coordination between central and local policies.
23. Beijing unveiled Action Plan for Innovation and Development of Robotics Industry in Beijing (2023 - 2025)
On 28 June, the Beijing Municipal Government unveiled the Action Plan for the Innovation and Development of the Robotics Industry in Beijing (2023 - 2025). The strategy is designed to accelerate the growth and innovation of the robotics sector in the city. By 2025, the plan aims to cultivate a diverse range of 100 high-tech and high value-added robot products, along with 100 different application scenarios. Additionally, the plan emphasises providing support to robotics enterprises, including assistance in establishing manufacturing facilities that enable the production of robots by robots, as well as the creation of experience centres for smart manufacturing. The plan also aims to foster the development of high-quality companies in the field and nurture unicorn enterprises with significant global influence. The city's robot industry is expected to generate revenue of more than CNY30 billion yuan by 2025.
24. Hangzhou released Implementation Opinions on Accelerating Innovation and Development of AI Industry
On 27 July, the Hangzhou Municipal Government released the Implementation Opinions on Accelerating the Innovation and Development of the AI Industry, with an aim to capitalise on emerging opportunities in the sector and position Hangzhou as a frontrunner in AI innovation and development. The document provides opinions on various aspects, including optimizing algorithm, bolstering computing capabilities, advancing model construction and innovation, data sources, AI applications, and nurturing AI enterprises.
On 19 June, the Beijing Municipal Bureau of Economy and Information Technology released the Implementation Plan for the Construction of a Sci-tech Innovation System for Cutting-edge Industries in Beijing (Draft for Comments). The plan emphasises the need for a selection system that recognises and promotes talented individuals, along with a motivating incentive and reward mechanism and a management and fund utilisation system to effectively support the achievement of goals.
On 7 June, the Beijing Municipal Commission of Planning and Natural Resources released the Notification on Expanding the Scope of Advanced Assisted Driving Map Review for ICVs in Beijing. This expansion will encompass the entire administrative area of Beijing.
On 30 June, the Shanghai Administration for Market Regulation released the Guidelines for Assessing Competition Compliance of Internet Platform Enterprises (Draft for Comments) (the "Competition Guidelines"). The Competition Guidelines categorise the assessment results into three distinct categories and seven fundamental levels. The assessment results should be provided to the assessed organisations to facilitate continuous improvement of their competition compliance systems and shared with relevant authorities to serve as a reference for implementing competition policies and promoting competition compliance among enterprises.
On 13 June, the Shanghai Municipal Government released the Action Plan for Achieving Breakthroughs in Key Technologies in the Meta-universe Filed (2023-2025). The plan takes into consideration the industry development in domestic and international markets as well as the R&D foundation in Shanghai. With a specific focus on immersive technology and Web 3.0 technology, the plan aims to establish a new highland in key technology areas such as immersive audio-visual experiences, immersive computing, new display technologies, sensory interaction, and blockchain.
On 19 June, the Shanghai Municipal Administration of Culture and Tourism released the Action Plan for Building a New Track for Culture and Tourism Meta-universes in Shanghai (2023 - 2025). The plan sets forth the primary objectives for constructing a new track dedicated to culture and tourism meta-universes by 2025. It also outlines specific focus areas for the next three years, including the development of new digital infrastructure for culture and tourism, advancements in technology tools, the creation of new scenarios within culture and tourism meta-universes, the creation of digital artworks, and the generation of immersive and interactive content.
On 21 June, the Science and Technology Commission of Shanghai Municipality released the Draft Implementation Plan for Piloting Innovation and Reform in the Transformation of Sci-tech Achievements in Shanghai. The plan encompasses several significant reform measures, including: 1) removing ownership restrictions on sci-tech achievements to foster “full empowerment” trials; 2) providing guidelines for pilot organisations to establish a dedicated management system for sci-tech achievements; 3) enabling pilot organisations to carry out compliance rectifications for enterprises set up by scientific researchers; and 4) promoting the implementation of due diligence and exemption mechanisms through institutional guidelines, alleviating concerns among stakeholders involved in the transformation of sci-tech achievements."
31. China's first smart park for ICVs commenced operations in Beijing
On 14 July, the Taiheqiao Smart Park, China's first and only integrated smart park for ICVs, commenced operations in Beijing. The park serves as a testing ground for the vehicle-road-cloud integration system for ICVs in China. It also acts as a platform to display the latest research and development achievements and integrated application in the industry. The park highlights the complete life cycle of ICVs, both in physical and digital forms, offering a window into the advancements and possibilities of ICVs technology."
32. 2023 World Artificial Intelligence Conference kicked off in Shanghai
On 6 July, the 2023 World Artificial Intelligence Conference commenced in Shanghai. The event was jointly hosted by the NDRC, the MIIT, the MST, the CAC, the Chinese Academy of Sciences, the Chinese Academy of Engineering, the China Association for Science and Technology, and the Shanghai Municipal People's Government. the Conference. With the theme “Intelligent Connectivity: Generating the Future,” the event attracted over 1,400 guests, including domestic and international scholars, renowned entrepreneurs, and representatives from international organisations.
33. Shanghai unveiled Project Implementation Plan to Promote Urban Blockchain Digital Infrastructure System (2023 - 2025)
On 31 July, Shanghai unveiled the Project Implementation Plan to Promote the Urban Blockchain Digital Infrastructure System in Shanghai (2023 - 2025). The plan outlines key objectives to be achieved by 2025, which include the full establishment of the Pujiang Digital Chain digital infrastructure system, breakthroughs in core blockchain technology, and the construction of a standard system. Additionally, it aims to promote coordination among blockchain network resources in the Yangtze River Delta region to develop the region into an international blockchain exchange hub.
34. 2023 China Internet Conference was held in Beijing
The 22nd China Internet Conference took place in Beijing from 18 - 20 July. As part of the conference, the Digital Government Forum was held on 19 July, co-organised by the China Academy of Information and Communications Technology and China Economic Information Service. The forum aimed to share valuable insights on the development of digital government construction and foster discussions on the implementation path, with the goal of constructing a digital China that is led and driven by digital government initiatives.
35. 2023 China Computing Power Conference was held in Yinchuan, Ningxia
The 2023 China Computing Power Conference was held in Yinchuan, Ningxia, from 18 - 19 August. Co-hosted by the MIIT and the local government, the conference brought together both decision-makers and industry experts. With a focus on the theme of “Leading the Trend of New Industries and Empowering High-Quality Development,” the event aimed to showcase the latest advancements in the computing industry and foster a platform for industry collaboration.
