China TMT: Bi-monthly Update - September & October 2024 Issue
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This newsletter summarises the latest developments in Technology, Media, and Telecommunications in China with a focus on the legislative, enforcement and industry developments in this area.
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Key Highlights
In September and October 2024, China introduced a series of laws, regulations, and policies in artificial intelligence, smart transportation, and intelligent manufacturing, aiming to accelerate the deep integration of technology with industry and drive the intelligent transformation and upgrading of various sectors:
- Artificial Intelligence: The Cyberspace Administration of China (“CAC”) and other departments have advanced the standardisation and application of AI through management measures, guidance standards, security frameworks, and training and industry integration initiatives. These efforts include enforcing labelling requirements for AI-generated content and implementing data security measures to ensure transparent and traceable content production. Additionally, local governments are actively promoting the integration of AI with the real economy, fostering intelligent and green development, enhancing core technology innovation, and building a globally competitive new productivity system.
- Smart Transportation: The Ministry of Transport and the State Administration for Market Regulation (“SAMR”) are promoting the standardisation and application of intelligent connected vehicles and smart transportation. Initiatives include pilot programs, technical standards, and industry support policies covering autonomous driving tests, vehicle-network interaction, and quality improvement for domestic automotive chips. These efforts aim to ensure the safety and consistency of smart automotive products, fostering an intelligent and green transportation ecosystem and accelerating the high-quality transformation of China’s smart transportation and automotive industries.
- Intelligent Manufacturing: The Ministry of Industry and Information Technology (“MIIT”) and other departments are actively driving the digital and intelligent transformation of the manufacturing, power, and optical chip industries by issuing implementation plans and action guidelines to integrate information and manufacturing technologies. Through initiatives like building smart factories, optimising production processes, expanding the industrial internet, and enhancing R&D in key technologies and industrial clustering, China’s innovation capacity and international competitiveness are steadily increasing. These efforts are helping industries achieve sustainable, high-quality development goals.
Follow the links below to view the official policy documents or public announcements.
Legislative Developments
1. CAC proposed management regulations to promote and regulate the healthy development of direct-to-satellite services for terminal devices (27 September)
The CAC released the Management Regulations for Direct-to-Satellite Services for Terminal Devices (Draft for Public Comment) to solicit public input. These regulations aim to promote and regulate the development of direct-to-satellite services for terminal devices, ensuring national security and public interest while protecting the legitimate rights of citizens and organisations. The regulations specify technical requirements, licensing management, production, sales, and usage rules for terminal devices, as well as the responsibilities of service providers. They also emphasise device security requirements, data protection, and international communication. Service providers are required to operate in compliance and will be held legally accountable for violations.
2. MIIT proposed amendments to regulations on safety management in telecommunication construction projects to enhance safety practices (24 September)
The MIIT released the Safety Management Regulations for Telecommunication Construction Projects (Draft for Public Comment) to strengthen safety management in telecommunication construction, aiming to protect the lives and property of the public and prevent safety accidents. The regulations clarify the responsibilities and obligations of all participating parties, including construction units, survey and design units, contractors, general contractors, subcontractors, and supervisory units, regarding safety management. They require each unit to establish a robust safety responsibility system, manage safety-related expenses responsibly, and ensure that personnel have the necessary safety knowledge and skills.
3. CAC issued management measures requiring prominent labelling for AI-generated synthetic content (14 September)
The CAC released the Management Measures for Labelling AI-Generated Synthetic Content (Draft for Public Comment), aimed at standardising labelling practices for AI-generated content to safeguard national security, public interest, and citizens’ legal rights. The measures specify that service providers must include explicit or implicit labels when generating text, images, audio, video, or other content. They also outline requirements for label management, verification by distribution platforms, and user declarations to ensure transparency in content labelling. This draft provides clear labelling standards for the industry and is set to take effect in 2024.
4. CAC issued national standards to guide labelling of AI-generated synthetic content (14 September)
The CAC released the national standard Cybersecurity Technology: Methods for Labelling AI-Generated Synthetic Content (Draft for Public Comment), providing guidelines for labelling AI-generated content. The standard outlines two types of labels: explicit and implicit. Explicit labelling includes direct indicators such as text, audio, or graphics to notify users that the content is AI-generated, while implicit labelling embeds metadata within the file to trace the content’s origin and attributes. The standard applies to both synthetic content generators and distribution service providers to ensure transparency and traceability of AI-generated content.
5. TC260 released version 1.0 of the AI Security Governance Framework, setting standards for data security and personal information protection in AI (9 September)
The National Technical 260 on Cybersecurity of Standardization Administration of China (“TC260”) issued the AI Security Governance Framework 1.0, aimed at addressing security and personal information protection challenges in the AI sector. The framework is based on principles such as “inclusive prudence to ensure safety” and “risk-oriented agile governance,” emphasising a combination of technical and managerial measures to tackle inherent and application-based AI security risks. It categorises potential risks associated with AI technologies and applications, including algorithmic bias, data leaks, system vulnerabilities, and ethical concerns, and provides specific recommendations for technical responses and comprehensive governance. This framework supports the development of a globally cooperative AI governance system.
6. Five departments issued regulations to standardise personal assistance online platforms (5 September)
The Ministry of Civil Affairs and four other departments jointly released the Administrative Measures for Personal Assistance Online Platforms, aimed at regulating the operation of these platforms to protect the legal rights of beneficiaries, information publishers, and donors. The measures specify requirements for platform designation, qualifications, information security, and personal information protection. Platforms must fulfil responsibilities for information verification, fund management, and public disclosure. They must be designated by the Ministry of Civil Affairs, possess legal status, and demonstrate capacity in fund management and information security. The platforms are required to transparently manage raised funds, ensure funds are used exclusively for intended purposes, and strictly audit fund disbursement. If false information or illegal activity is identified, platforms should promptly terminate services and report to public security authorities. The measures also highlight platform legal responsibilities, industry self-regulation, public oversight, and regulatory duties of supervisory authorities.
Shanghai has sought public feedback on the Technical Specifications for Intelligent Operation Scenarios in Urban Rail Transit. This standard aims to regulate digital transformation and smart applications in the construction, renovation, and expansion of urban rail transit systems, covering technical and functional requirements in areas such as train operations, passenger management, maintenance support, and emergency response. The standard is intended to promote efficient, safe, and intelligent development in rail transit operations.
8. Beijing issued implementation guidelines to strengthen record management of educational mobile internet applications (5 September)
Beijing released the Implementation Guidelines for the Record Management of Educational Mobile Internet Applications, emphasising the importance of managing the registration of educational apps. The guidelines outline two types of record management: provider and user records. Providers must complete internet information service and cybersecurity grade filings before recording and promptly update any changes in information. The Municipal Education Commission oversees coordination, while district education commissions and universities guide implementation to ensure app content complies with legal standards and prohibits unauthorised charges. Record results are made public, and the Municipal Education Commission conducts regular checks and maintains a dynamic blacklist and whitelist management system.
Enforcement Developments
9. Shanghai announced registration information for generative AI services, with a total of 46 registered services (31 October)
The Shanghai CAC released an announcement on the progress of registration for generative AI services. As of the announcement date, a total of 46 generative AI services have been registered in Shanghai, including 5 newly added services. Registered AI applications must display their registration number prominently to ensure transparency and compliance with regulatory standards.
10. CAC exposed 12 typical cases of online rumours in public policy, emergency incidents, and social livelihood areas (12 October)
The CAC publicly exposed the fifth batch of typical cases involving online rumours related to public policy, emergencies, and social livelihood. A total of 8,583 violating accounts were handled. These rumours included false claims such as “children abducted in a refrigerated truck,” and “scan code to receive labour subsidies,” etc., all of which were verified as untrue. Some rumour spreaders have been detained or penalised according to the law. This action aims to curb online misinformation and maintain social harmony and stability.
11. NMPA reported four cases of illegal online sales of medical devices, cracking down on violations (29 September)
The National Medical Products Administration (“NMPA”) announced the seventh batch of cases involving illegal online sales of medical devices. These cases included violations such as failing to inform regulatory authorities, unauthorised changes in business operations, and delays in updating medical device registration certificates while selling through various online platforms. The relevant market regulatory departments imposed administrative penalties for these actions. The NMPA reminds companies engaged in online medical device sales to operate legally and ensure the quality and safety of medical devices, while third-party platforms should enhance monitoring and management to promptly prevent illegal activities.
12. Ministry of Public Security cracked down on online “fan circle” misconduct, shutting down over 100,000 violating accounts (27 September)
The Ministry of Public Security reported the results of its crackdown on online “fan circle” misconduct, part of this year’s ongoing summer security action focused on unlawful activities within fan communities. Violations included fake engagement metrics, traffic manipulation, invasion of privacy, and online bullying. Authorities investigated over 700 cases, with more than 800 individuals subject to criminal enforcement and over 200 to administrative penalties and shut down over 100,000 violating accounts. Several cases of online bullying related to sports, especially during the Paris Olympics, were targeted. The Ministry has also strengthened inter-departmental coordination to ensure safety and order at large cultural events.
Industry Developments
13. MIIT issued an implementation plan to drive the digital transformation of the power equipment manufacturing industry, promoting high-quality development (23 October)
The MIIT released the Implementation Plan for the Digital Transformation of the Power Equipment Manufacturing Industry, aimed at enhancing efficiency and quality in power equipment manufacturing through digital upgrades. The plan emphasises the leading role of enterprises, encouraging increased investment in digitalisation and workforce skills training, and supports major enterprises in spearheading collaborative transformation efforts. The plan also proposes establishing a Digital Transformation Promotion Centre to offer professional support and high-quality solutions. It includes various exemplary scenarios, such as the digital design of large power generation units and high-voltage gas switches, intelligent production and quality management systems, and smart warehousing and logistics for power equipment materials. These initiatives leverage emerging technologies to improve automation and intelligence in production, laying a foundation for efficient development in the power equipment manufacturing sector.
14. MIIT released the 2024 reference guide to further advance the integration and innovative application of the industrial internet in the power industry (15 October)
The MIIT issued the Reference Guide for the Integration of the Industrial Internet and the Power Industry (2024) to promote the application of industrial internet technologies within the power sector, accelerating its digital, intelligent, and green transformation. The guide provides a comprehensive implementation roadmap for companies in the power industry chain, fostering collaboration through smart platforms, data integration, and energy-saving measures. By sharing best practices and established models, the guide aims to enhance operational efficiency and support sustainable development across the power sector.
The MIIT officially launched a pilot program to expand foreign access to value-added telecom services in four regions: Beijing, Shanghai, Hainan, and Shenzhen. This marks a new phase in the opening of China’s telecom industry, permitting foreign companies to operate wholly owned businesses in internet data centres, online data processing, and transaction processing within the pilot areas, thereby encouraging deeper foreign participation in China’s computing power and cloud services market. At the launch, the MIIT Minister emphasised the need to optimise the environment for foreign investment, establish a secure regulatory system, and develop a replicable and scalable open model to support high-quality development and robust security. The pilot will also explore new business formats to advance China’s digital industry growth.
The MIIT, in collaboration with five other departments, issued a notice to initiate the 2024 smart factory gradient cultivation initiative, aimed at advancing the digital transformation of the manufacturing sector. The initiative categorises smart factories into four levels—basic, advanced, excellent, and leading—encouraging enterprises to build smart factories based on their level of smart manufacturing maturity. Companies at each level will receive tailored support and guidance. The initiative will be implemented through the Public Service Platform for Smart Manufacturing Data Resources, promoting high-quality development and wider adoption of smart manufacturing practices.
17. SASAC hosted an AI training program for central enterprises to enhance AI adoption and industry development (25 October)
The State-owned Assets Supervision and Administration Commission (“SASAC”) launched an AI training program for central enterprise leaders and technical experts, aiming to improve understanding and mastery of AI technology to drive its widespread application in state-owned enterprises. The SASAC highlighted AI as a strategic and foundational technology of the future, urging central enterprises to lead in advancing new productive capabilities.
18. Ministry of Transport and SAMR released an implementation plan to advance the smart transportation service standardisation pilot program (21 October)
The Ministry of Transport, together with the SAMR, issued the Implementation Plan for the National Service Industry Standardisation Pilot (Smart Transportation Special) and launched the collection of 2024 pilot projects. The plan aims to drive the development of new business models and high-quality growth in the transportation sector through the standardisation of smart transportation. Focusing on areas such as smart logistics and intelligent mobility, the pilot program seeks to standardise intelligent transportation infrastructure and services, gradually establishing a national-level smart transportation standards system. The projects will proceed in three phases: foundational infrastructure, standards development, and application promotion, supporting initiatives like smart logistics, unmanned delivery, and intelligent monitoring.
The 2024 World Intelligent Connected Vehicles Conference commenced on 17 October in Beijing, with notable attendees. The conference aims to promote the intelligent and green transformation of the automotive industry, fostering new economic growth drivers. The conference highlighted the importance of technological innovation, international collaboration, and industrial synergy, underscoring the key role of the intelligent connected vehicle sector in advancing new industrialisation. They also called for accelerated technological research and legislative improvements to support autonomous driving and smart transportation development. Over three days, the conference will present innovations, including the top ten global technology trends for intelligent connected vehicles, with more than 4,000 representatives from multiple countries participating.
The SAMR convened a meeting in Beijing focused on the industrial application and quality improvement of domestic automotive chips under the “Quality Strong Chain” initiative. Hosted by SAMR Deputy Director Pu Chun, the meeting emphasised leveraging China’s large-scale market advantages to enhance the quality and efficiency of the automotive chip supply chain, addressing the “bottleneck” issue in chip supply. During the meeting, SAMR released the first list of certified domestic automotive chip enterprises and introduced version 1.0 of the automotive chip certification review technical system, marking a new phase in automotive chip quality certification in China.
21. MIIT held a symposium on accelerating AI-driven new industrialisation to develop new productive capacities (10 October)
The MIIT convened a symposium in Beijing focused on advancing the application of artificial intelligence in new industrialisation. The meeting underscored the importance of AI in promoting intelligent, green, and cluster-based development through technological innovation. Beijing will leverage its strengths in technological breakthroughs, infrastructure, and the integration of the digital and physical economies to support AI-driven industrialisation. MIIT expressed its commitment to closely collaborate with Beijing, supporting innovation in high-end manufacturing, intelligent robotics, and other fields to drive intelligent transformation and upgrades.
The MIIT and the NMPA released the list of 104 top-performing units in the AI medical device innovation task. These units have made significant advancements in areas such as intelligent diagnostic assistance, therapeutic assistance, monitoring and life support, rehabilitation therapy, traditional Chinese medicine AI diagnostics, and medical AI databases. Relevant local departments are encouraged to increase support for these leading units to promote the application of AI technology in the medical device sector, facilitating high-quality growth in China’s AI medical device industry and accelerating the deployment of innovative outcomes.
23. A series of key national standards in intelligent connected vehicles, government service platforms, and other sectors took effect from October (1 October)
Starting 1 October 2024, a new set of important national standards across various sectors, including operational safety for intelligent connected vehicles, smart clothing, smart furniture, and the national integrated government service platform, officially came into effect. These standards provide robust support for improving product quality, guiding industry development, ensuring safety, and enhancing public service quality. Their implementation aims to drive high-quality development across industries and improve the quality of life and overall well-being of the public.
The SAMR convened the On-Site Promotion and Experience Exchange Meeting on Stabilising the Safety Standards Chain for Driver Assistance in Intelligent Connected Vehicles and National Standards Release Conference in Shenzhen. During the event, SAMR released six recommended national standards and three mandatory national standards for driver assistance in intelligent connected vehicles. These standards aim to enhance product consistency, ensure safety levels, and support the healthy and sustainable growth of the industry. This release further improves China’s standards system for intelligent connected vehicles, playing a crucial role in safeguarding the security and stability of the industrial and supply chains. SAMR stated that it will continue to strengthen standards development to drive high-quality advancement across the industry chain.
25. MIIT announced 19 proposed telecommunications industry standards covering security grading, disaster recovery, and more (19 September)
The MIIT issued a public notice on 19 proposed telecommunications industry standards, addressing critical areas such as zero-trust architecture for cloud computing, mobile network security, 5G network equipment security, quantum key distribution network requirements, satellite positioning capabilities of mobile smart terminals, and interconnected computing power capabilities. These standards aim to provide clear guidance for technological innovation and security within the industry. Notably, some standards, like Zero-Trust Architecture for Cloud Computing Part 4: Data Protection Requirements and 5G Mobile Network Equipment Security Assurance Requirements, focus on enhancing data security and network equipment protection. The release of these standards will further promote the standardisation of China’s telecommunications industry in areas of cybersecurity, technology development, and industry upgrading.
26. MIIT released the 2024 edition of the reference guide for typical smart manufacturing scenarios to accelerate industrial digitalisation (19 September)
The MIIT issued the Reference Guide for Typical Smart Manufacturing Scenarios (2024 Edition), which outlines 40 smart manufacturing scenarios covering 15 key areas, including factory construction, product design, process design, planning and scheduling, and production operations. The guide aims to advance smart factory construction and optimise operations by deeply integrating information technology with manufacturing technology. This initiative seeks to enhance the level of intelligence in manufacturing, promoting digital transformation and efficient management across the industry.
27. NFRA issued a notice to strengthen management of mobile internet applications in the banking and insurance sectors (12 September)
The National Financial Regulatory Administration (“NFRA”) recently issued a notice calling for enhanced management of mobile internet applications within the banking and insurance sectors. The notice stipulates that financial institutions must incorporate mobile apps into their digital transformation plans, establish an app inventory, control the number of apps, and ensure security and compliance. Responsibilities for app management should be assigned to specific departments and personnel, with mechanisms for business compliance reviews in place. Financial institutions are also required to strengthen third-party partnership management, conduct security checks on mobile apps, and uphold privacy and data security standards. The notice emphasises cybersecurity for apps, encrypted data transmission, user identity verification, and emergency response management, mandating strict adherence to national laws and regulations on personal information management and cybersecurity protection.
28. MIIT issued a notice to advance “Intelligent Connectivity of Everything” in mobile IoT, supporting digital transformation and new industrialisation (12 September)
- The MIIT released the Notice on Promoting the Development of “Intelligent Connectivity of Everything” in Mobile IoT, setting a goal to establish a comprehensive mobile IoT ecosystem by 2027, evolving from “Internet of Everything” to “Intelligent Connectivity of Everything.” Through the widespread deployment of 5G NB-IoT, RedCap, and other technologies, the number of mobile IoT terminal connections is expected to surpass 3.6 billion. The notice emphasises the importance of strengthening network infrastructure, enhancing intelligence levels, advancing industrial digital transformation, and improving smart living. Stakeholders are encouraged to increase policy support and funding, promote talent development, and improve network security and industry innovation capabilities to achieve the goal of “Intelligent Connectivity of Everything.”
29. SAMR issued 19 guidelines requiring e-commerce platforms to fulfil their primary responsibility for compliance management (9 September)
The SAMR released the Guiding Opinions on Urging E-commerce Platforms to Fulfil Their Primary Responsibility for Compliance Management (Draft for Public Comment) to enhance the compliance management capabilities of e-commerce platform companies and promote healthy industry growth. The guidelines stress that companies should establish robust compliance management systems, define the roles and responsibilities of key personnel, and conduct regular compliance risk assessments and rectifications. By improving compliance management mechanisms, the draft guidance encourages companies to reduce compliance costs while enhancing the independence and effectiveness of their compliance operations. Market regulators will also strengthen their oversight and guidance of corporate compliance management to ensure lawful operations.
30. CAC released the 2023 National Informatization Development Report, reviewing the year’s progress in informatization (6 September)
The CAC issued the National Informatization Development Report (2023), summarising achievements across regions and departments in the informatization sector for 2023. The report highlights the critical role of informatization in promoting high-quality economic development, enhancing public services, and advancing social governance. It underscores informatization as a core driver of technological innovation and industrial transformation, contributing significantly to public well-being and security. Looking ahead, the report notes that informatization will continue to play a pioneering role in modernisation efforts, supporting technological self-reliance, economic growth, public welfare, and the modernisation of the national governance system.
The MIIT, along with eleven other departments, released the Notice on Promoting the Coordinated Development of New Information Infrastructure, aimed at strengthening the national planning and layout of information infrastructure to foster coordinated development. The notice emphasises optimising the layout of new technology facilities, including backbone networks, computing power, and blockchain, to promote inclusive development across urban and rural areas. It calls for network upgrades through multi-network coordination, integration of information infrastructure with traditional facilities, and the adoption of green and low-carbon technologies to enhance national network and data security capabilities. The notice also highlights the need for increased investment and financing for relevant projects, encouraging collaboration between local governments and enterprises to ensure steady progress in building new information infrastructure.
The Beijing Economic-Technological Development Area officially launched a spatial plan and special policies for the ICV industry, creating a 2.7 million square metre industrial ecosystem space with a “one port, four bases” layout to promote high-quality development of the ICV industry. The area introduced 10 special policies offering financial support for areas such as industry standard-setting, data transactions, autonomous driving testing, and key technological breakthroughs, strengthening and extending the ICV industry chain.
33. Guangdong Province released the 2024–2030 action plan to drive innovation in the optical chip industry (21 October)
The Guangdong Provincial Government unveiled the Action Plan for Accelerating Innovation in the Optical Chip Industry (2024–2030), aiming to achieve key technological breakthroughs in the optical chip sector by 2030. The plan seeks to develop 10 globally competitive optical chip products, cultivate world-class leading enterprises, and establish multiple national and provincial innovation platforms. Key tasks include overcoming critical industry technologies, accelerating pilot-scale transformations, building innovation platforms, promoting industrial clustering, fostering leading enterprises, and enhancing collaborative innovation. The plan focuses on strengthening the entire industry chain, from R&D and manufacturing to packaging, laying a foundation for high-quality development and global competitiveness in the optical chip industry.
34. Zhejiang Province released the “AI+” Action Plan to promote deep integration of AI with the real economy (8 October)
Zhejiang Province issued the Zhejiang “AI+” Action Plan (2024–2027) for public comment, aiming to drive the deep integration of artificial intelligence with the real economy and foster the formation of new productive capacities. The plan focuses on accelerating the application of intelligent technologies to enhance Zhejiang’s innovation capabilities and industry competitiveness in AI. It covers key areas including core technology R&D, industry ecosystem optimisation, application scenario expansion, and policy support. Through this plan, Zhejiang aims to promote widespread AI application across critical sectors such as manufacturing, healthcare, and transportation, and to support enterprises in advancing smart upgrades and digital transformation.
