CHINA Law and Practice Contributed by: Jihong Chen, Zhong Lun Law Firm
and the illegal act was promptly corrected. Similarly, administrative punishments shall not be imposed if the violation was minor and rectified in a timely manner, and has not resulted in any harmful consequence. 1.4 Data Protection Fines in Practice Among the administrative proceedings under - taken in recent years, violations punished by the administrative authorities include but are not lim - ited to: • failure to satisfy transparency requirements and the minimum necessary principle of PI processing; • failure to obtain data subjects’ consent before PI collection; • insufficient security management; and • failure to detect security loopholes in network services. The most notable cases in recent years involving such violations include the following. • In 2022, the CAC fined leading Chinese ride- hailing company DiDi Chuxing approximately CNY8.02 billion, due to its significant violation of the CSL, the DSL and the PIPL in aspects including illegal and excessive collection of users’ and drivers’ PI, failure to clearly explain the PI processing activities to individuals, etc. • In September 2023, the CAC imposed an administrative fine of CNY50 million on China National Knowledge Infrastructure (CNKI), a well-known Chinese online platform, for its alleged unauthorised and excessive PI col - lection, lack of a public privacy policy and options for account cancellation, and failure to retain PI for the shortest necessary period of time. • In June 2024, the National Financial Regula - tory Administration announced that Bank of
Communications was fined CNY1.6 million for data breaches such as security and operation management loopholes, insufficient disaster recovery management, etc. 1.5 AI Regulation Recent Developments in AI Regulation and Implications for Data Protection China has taken agile legislative action to effec - tively address the regulatory, legal and ethical challenges posed by AI technology by building and implementing a comprehensive AI regu - latory framework in recent years. The Interim Measures for the Administration of Generative Artificial Intelligence Services (“AIGC Measures”; 生成式人工智能服务管理暂行办法 ) came into effect on 15 August 2023 and expressly outline the regula - tory framework for AI-generated content (AIGC) technology, encompassing various stages such as model training, application deployment and model optimisation, and multiple subjects like AIGC developers, service providers and users. AIGC service providers shall conduct an AIGC filing according to the AIGC Measures, as well as an algorithm filing according to the Adminis - trative Provisions on Algorithm Recommenda - tion for Internet Information Services (“Algorithm Provisions”; 互联网信息服务算法推荐管理规定 ), and the competent authorities will review such AIGC services from a cybersecurity and PI protection perspective, among others. The Measures for Review of Scientific and Technological Ethics (Trial) ( 科技伦理审查办法 ( 试 行 )), which came into effect on 1 December 2023, demonstrate China’s significant attention to technology development as well as ethical reviews of AI. Regarding the specific application of AI technology, as stipulated by the Adminis - trative Provisions on Deep Synthesis in Internet- Based Information Services ( 互联网信息服务深度合成 管理规定 ), contents generated by deep learning or
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