The Chinese government will adopt a new data protection policy, Personal Information Protection Law. It is based on already drafted European approach toward data protection law, the General Data Protection Regulation (GDPR) that came into effect in 2018 and Data Security law (DSL) which will be implemented on September 1. The European law clearly differentiates between protection of data and privacy and protection of individuals with regard to processing their personal data.
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The proclaimed aims of the Chinese law are:
- To protect the rights and interest of individuals
- To regulate personal information processing activities
- To safeguard the lawful and “orderly flow”
- To facilitate reasonable use of personal information
The new and final draft of the law will take effect from November 1 and it will be enforced to save the rights of individuals related to data protection. PIPL is implemented to control the usage of personal information of individuals by companies. The law was enforced because of the complaints about privacy violations without their. It also gives individuals the right to get an explanation the right of data portability. Fines will be charged from a company that violates the law according to its turnover PIPL has mechanisms for individuals to obtain compensation from data handlers in case they suffer from privacy breach. China is also for aiming for defending its digital sovereignty by blacklisting overseas entities that jeopardizes national security or public interest.
The final version of the law includes some new rules with respect to processing of personal information such as:
- A separate consent of the user will be required for processing of their sensitive information such as biometrics, financial statements, health data biometrics.
- Mobile apps and tech companies that illegally process data or personal information will be banned unless they rectify their working processes.
- A convenient option to refuse to services must be provided that are carried out via automated decision making
Privacy is universal right of individuals which should be protected at any cost. Therefore a violation of privacy and exploitation of sensitive data of individuals by companies will not be taken lightly, as individuals can file a lawsuit with people’s court to protect their rights. So Chinese and foreign companies need to re-evaluate their data processing techniques and try to comply with the regulations to avoid from getting blacklisted or banned.