CHINA Trends and Developments Contributed by: Zhang Yunyan, Yang Dong, Shang Zicheng and Ye Xin, Beijing Jincheng Tongda & Neal (Shanghai) Law Firm
Key judicial developments in the IT sector In recent years, the rapid development of China’s IT sector has given rise to a growing number of disputes involving AI, data security, personal information pro - tection and platform competition. Through a series of representative cases, Chinese courts have continued to clarify the application of relevant laws and provide greater legal certainty for businesses operating in the digital economy. The following cases illustrate several of the most significant judicial developments in the IT sector. AIGC and copyright protection Chinese courts have handled an increasing number of copyright disputes relating to AI-generated content (AIGC), although a fully consistent judicial approach has yet to emerge. Recognition of copyright protection for AI-generated works In the landmark AIGC Copyright Case, the Beijing Internet Court held that where a creator exercises suffi - cient intellectual input and creative control throughout the AI-assisted creation process, the resulting work may satisfy the originality requirement under China’s Copyright Law and therefore qualify for copyright pro - tection. The court further found that the unauthorised removal of the author’s attribution and online dissemi - nation of the work constituted copyright infringement. This decision is widely regarded as the first land - mark judicial recognition of copyright protection for AI-generated works in China, confirming that content generated through meaningful human intellectual contribution with the assistance of AI tools may enjoy copyright protection. Diverging judicial approaches Chinese courts have also reached different conclu - sions in subsequent cases. In one case, the Zhangji - agang People’s Court held that copyright protects only concrete original expression, whereas prompts entered into an AI system merely represent abstract ideas and therefore do not, by themselves, qualify for copyright protection.
lishing clearer and more operational rules governing data ownership and rights while improving the infra - structure for data circulation and trading. At the same time, regulators continue to encourage the innovative use of data across a broader range of industries and business scenarios in order to maximise the economic value of data resources. Continued optimisation of cross - border data transfer regulation China continues to refine its regulatory framework gov - erning cross-border data transfers while maintaining a strong emphasis on data security. On the one hand, the mandatory security assessment regime remains a key safeguard for the outbound transfer of impor - tant data and sensitive personal information. On the other hand, regulators are exploring more facilitative mechanisms, including “approved list” programmes for eligible businesses, with the aim of improving the efficiency of compliant cross-border data transfers. Strengthening cybersecurity regulation China’s cybersecurity regime continues to become more stringent and sophisticated. Regulatory priori - ties have expanded from the protection of traditional network infrastructure to addressing security risks arising from emerging technologies such as AI and big data. Amendments to the Cybersecurity Law have significantly increased regulatory penalties and imposed more stringent obligations on operators of critical information infrastructure. In parallel, regula - tory authorities continue to strengthen certification and testing requirements for cybersecurity products in order to improve the overall security of the digital ecosystem. Overall, China’s IT regulatory regime is becoming increasingly standardised, refined and mature. Regu - latory priorities now extend beyond the formulation of legal rules to their practical application across specific business activities, covering areas ranging from AI governance and data circulation to cross-border data transfers and cybersecurity. For businesses operating in China, keeping pace with regulatory developments and continuously enhancing internal governance and compliance frameworks will be essential to effectively managing legal and regulatory risks.
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