CHINA Trends and Developments Contributed by: Zhang Yunyan, Yang Dong, Shang Zicheng and Ye Xin, Beijing Jincheng Tongda & Neal (Shanghai) Law Firm
Beijing Jincheng Tongda & Neal (Shanghai) Law Firm 36F, Jinmao Tower
No 88 Century Avenue Pudong New District Shanghai China Tel: +86 213 886 2288 Fax: +86 213 886 2288*1018 Email: shanghai@jtn.com Web: www.jtn.com
Regulating the Processing of Information and New Technology in China Overview of the information technology sector China’s information technology (IT) sector has con - tinued to experience rapid growth. At the same time, the government has introduced a series of initiatives, including the Action Plan for Cultivating the Data Fac - tor Market, to promote data ownership clarification, data circulation and trading. As a result, the value of data is increasingly being unlocked across sectors such as financial risk management and intelligent transportation, demonstrating the significant potential of China’s data factor market. Cloud computing has also become a key component of the country’s digital economy infrastructure. The rapid expansion of China’s IT sector has acceler - ated the integration of artificial intelligence (AI), data resources and digital infrastructure, while also driv - ing the continuous development of the country’s legal and regulatory framework. As the sector continues to evolve, a more comprehensive and sophisticated regulatory regime is expected to play an increasingly important role in supporting the sustainable develop - ment of China’s IT sector. China’s IT sector is also being shaped by a broad - er digital transformation agenda that extends well beyond technological innovation. Traditional indus - tries, including manufacturing, finance, healthcare and transportation, are increasingly integrating AI, cloud computing and data analytics into their core business operations. This digital transformation has
significantly accelerated demand for data-driven busi - ness models and intelligent infrastructure, while also creating new legal and regulatory challenges relating to data governance, cybersecurity and the responsi - ble deployment of emerging technologies. At the same time, China’s emphasis on developing the digital economy has encouraged businesses to adopt new technologies at an unprecedented pace. As digitalisation becomes increasingly embedded across commercial activities, regulatory authorities are likewise expected to refine the legal framework governing digital innovation. Consequently, legal compliance is no longer viewed merely as a risk management exercise but is increasingly becoming an important element of corporate governance and long-term business strategy for companies operating in China’s digital economy. Legal and regulatory framework for the IT sector To regulate the development of the IT sector while bal - ancing innovation and security, China has established a comprehensive legal and regulatory framework cov - ering AI, cybersecurity, personal information protec - tion, data security and cross-border data transfers. AI regulatory framework China has established a multi-layered regulatory framework for AI. The Interim Measures for the Admin - istration of Generative AI Services set out the fun - damental regulatory framework governing generative AI and have since been supplemented by a series of national standards that provide more detailed compli -
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