China Laws and Regulations Update in December 2022

1. Instructions on Formulating Fundamental Data Policies to Take Good Advantage of Data Elements

Promulgated by the Central Committee of the Communist Party and the State Council

Promulgation date: 19 December 2022

The Instructions includes 20 policies relating to data property, trade, profit distribution and security governance in order to establish underlying data policies and systems in China, fully activate data elements, energize real economic development, vitalize market entities, help develop new growth perspective and promote sound development. The Instructions explicitly mentions exploration of data property structuring system and establishment of confirmation and authorization systems for classification and grading of public, corporate and individual data. It also puts forward establishment and improvement of personal information confirmation and authorization mechanisms in order to cause data processors to legally collect, possess, use and entrust others to manage data containing personal information within the individual’s authorized scope, regulate activities of processing personal information, prevent excessive collection of personal information by “package licensing”, forced approval, etc. and promote fair use of personal information. (Source: Chinese Government website)

2. Interpretation of Several Issues Concerning Law Application to Criminal Cases of Damaging Production Safety (II)

Promulgated by the Supreme People’s Court and the Supreme People’s Procuratorate

Promulgation date: 15 December 2022

Implementation date: 19 December 2022

Document number: FS 2022 19

The Interpretation consists of twelve articles mainly dealing with issues relating to 1. severe attacks on crimes of forcing or organizing othersto do illegal and risky or dangerous work, 2. legal punishment for crimes committed by security evaluation agencies or personnel, 3. further clarification of criminal policies for legally punishing crimes damaging production safety and work requirements for linking administrative law enforcement and criminal law administration. The Interpretation explicitly deals with acts of forcing or organizing othersto do illegal risky work, and criteria for deciding criminal subjects and objective elements of the crime of doing dangerous work, etc., based on which judiciary authorities at all levels can correctly apply provisions relating to the above crimes and effectively fight and punish the crimes of harming production safety. (Source: SPC website)

3. Instructions on Strengthening Legal Protection of Intellectual Property Rights in Traditional Chinese Medicine

Promulgated by the Supreme People’s Court

Promulgation date: 22 December 2022

Document number: FF 2022 34

The Instructions consists of three parts and sixteen articles. Based on provisions relating to improvement of the role of trials in legal protection of intellectual property rights in traditional Chinese medicine and enhancement of judicial capacity, it deals with legal protection of patents, business marks, trade and state secrets, copyright and related rights, raw material resources, product categories, etc. relating to traditional Chinese medicine, improves maintenance of fair competition order on the traditional Chinese medicine market and protection of legal rights of traditional Chinese medicine innovation entities, strengthens punishment for infringement of intellectual property rights in traditional Chinese medicine, focuses on key areas and priorities relating to traditional Chinese medicine and provides a good guide for judicial practice to protect intellectual property rights in traditional Chinese medicine. Regarding protection of patents in traditional Chinese medicine, the Instructions suggests following development rules of traditional Chinese medicine, accurately understanding characteristics of traditional Chinese medicine innovation and improving legal protection rules for patents in traditional Chinese medicine. (Source: SPC website)

4. Regulations of Deep Synthesis of Internet Information Services

Promulgated by the Cyberspace Administration of China, the Ministry of Industry and Information Technology and the Ministry of Public Security

Promulgation date: 11 December 2022

Implementation date: 10 January 2023

The Regulations notes that people should not engage in activities prohibited by laws and administrative regulations by using deep synthesis services and requires that deep synthesis service providers fully perform responsibilities of information security entities, etc. It also mentions that deep synthesis service providers should establish and improve management policies and technical measures, formulate public management rules and platform conventions, authenticate users’ identity information, strengthen content management of deep synthesis and establish and improve rumor clarification, appeal, complaint and reporting mechanisms. The Regulations explicitly states that deep synthesis service providers should add marks to the information content generated or edited by using their services in a way that does not affect such use. Conspicuous marks should be attached to intelligent dialogue, human sound synthesis, face generation, immersion simulation scenario and other services that generate or obviously change the function of information content in order to avoid public confusion or misunderstanding. (Source: CAC Website)

5. Industrial and Information Data Security Management Rules (Experimental)

Promulgated by the Ministry of Industry and Information Technology

Promulgation date: 8 December 2022

Implementation date: 1 January 2023

Document number: GXBWA 2022 166

The main content of the Rules is comprised of seven parts, i.e. first, defining data and data processors in industrial and information areas and clarifying regulatory scope and duties; second, stipulating related requirements for data classification management and important data recognition and recordation; third, raising security management and protection requirements for collection, storage, processing, transmission, provision, publication, destroying, outbound transfer, commission to process, etc. of data of different levels; fourth, establishing work mechanisms relating to data security monitoring and warning, risk information reporting and sharing, emergency handling, complaint and report handling, etc.; fifth, clarifying related requirements for data security monitoring, certification and evaluation; sixth, stipulating supervision, examination, etc. requirements; seventh, clarifying legal responsibilities and punishment for violations of laws and regulations. (Source: MIIT website)

6. Guide to Implementation of Cyber Security Standards – Security Certification Standards for Cross-border Personal Information Processing Activities V2.0

Promulgated by the National Information Security Standardization Technical Committee

Promulgation date: 16 December 2022

Document number: XAMZ 2022 216

The Guide includes fundamental principles and provisions relating to personal information protection in cross-border personal information processing activities by personal information processors and foreign recipients, and interests of personal information subjects, etc.. It gives certification authorities the basis for certifying cross-border personal information processing activities by personal information processors and helps personal information processors set standards for cross-border personal information processing activities. The Guide mentions that personal information processors and foreign recipients should acknowledge and facilitate the exercise of personal information subjects’ rights, including the right to claim damages from either the personal information processor or the foreign recipient in case of personal information rights damaged, etc. (Source: NISSTC website)

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