The
National People’s Congress of China passed a new data protection bill on Friday
aimed at protecting online user data, China’s state media outlet Xinhua
reports. The new data protection law adds to China’s efforts of regulating the
cyberspace and is expected to add more compliance requirements for companies dealing
in data in the country.

China’s new
data protection law states that handling of personal information must have clear
and reasonable purpose and shall be limited to the “minimum scope necessary to
achieve the goals of handling” data.

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The new law
lays out the conditions for which companies can collect personal data,
including obtaining consent from an individual, as well as laying out
guidelines for ensuring data protection when data is transferred outside the
country.

Further,
China’s new law requires handlers of personal information to designate an
individual in charge of personal information protection, and also calls for
such handlers of information to conduct regular audits in compliance with the
law.

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The
Personal Information Protection Law and the Data Security Law are the two major
regulations that will govern China’s internet in the future.

The
Personal Information Protection Law will come into effect from November 1 while
the Data Security Law is to be implemented from September 1. The laws will set
a framework for companies to classify data based on economic value and relevance
to China’s national security.

The law
recalls Europe’s General Data Protection Regulation (GDPR) in a bid to ensure
privacy. The laws come amid a broader regulatory tightening from Chinese
regulators.

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Just last
month, the Cyberspace Administration of China announced that it would
investigate Didi Global Inc — the Chinese ride hailing giant — for allegedly
violating user privacy.

Earlier
this week, China’s State Administration for Market Regulation (SAMR) passed a
sweeping set of rules to improve fair competition and banned practices like
fake online reviews.