China

On July 13, 2023, the Cybersecurity Administration of China (“CAC”), in conjunction with six other agencies, jointly issued the Interim Administrative Measures for Generative Artificial Intelligence Services (《生成式人工智能管理暂行办法》) (“Generative AI Measures” or “Measures”) (official Chinese version here).  The Generative AI Measures are set to take effect on August 15, 2023. 

As the first comprehensive AI regulation in China, the Measures cover a wide range of topics touching upon how Generative AI Services are developed and how such services can be offered.  These topics range from AI governance, training data, tagging and labeling to data protection and user rights.  In this blog post, we will spotlight a few most important points that could potentially impact a company’s decision to develop and deploy their Generative AI Services in China.

This final version follows a first draft which was released for public consultation in April 2023 (see our previous post here). Several requirements were removed from the April 2023 draft, including, for example, the prohibition of user profiling, user real-name verification, and the requirement to take measures within three months through model optimization training to prevent illegal content from being generated again.  However, several provisions in the final version remain vague (potentially by design) and leave room to future regulatory guidance as the generative AI landscape continues to evolve.…

Continue Reading Key Takeaways from China’s Finalized Generative Artificial Intelligence Measures

On April 11, 2023, the Cyberspace Administration of China (“CAC”) released draft Administrative Measures for Generative Artificial Intelligence Services (《生成式人工智能服务管理办法（征求意见稿）》) (“draft Measures”) (official Chinese version available here) for public consultation.  The deadline for submitting comments is May 10, 2023.

The draft Measures would regulate generative Artificial Intelligence (“AI”) services that are “provided to the public in mainland China.”  These requirements cover a wide range of issues that are frequently debated in relation to the governance of generative AI globally, such as data protection, non-discrimination, bias and the quality of training data.  The draft Measures also highlight issues arising from the use of generative AI that are of particular concern to the Chinese government, such as content moderation, the completion of a security assessment for new technologies, and algorithmic transparency.  The draft Measures thus reflect the Chinese government’s objective to craft its own governance model for new technologies such as generative AI.

Further, and notwithstanding the requirements introduced by the draft Measures (as described in greater detail below), the text states that the government encourages the (indigenous) development of (and international cooperation in relation to) generative AI technology, and encourages companies to adopt “secure and trustworthy software, tools, computing and data resources” to that end. 

Notably, the draft Measures do not make a distinction between generative AI services offered to individual consumers or enterprise customers, although certain requirements appear to be more directed to consumer-facing services than enterprise services.

This blog post identifies a few highlights of the draft Measures.…

Continue Reading China Proposes Draft Measures to Regulate Generative AI

On March 7, 2023, during the annual National People’s Congress (“NPC”) sessions, China’s State Council revealed its plan to establish a National Data Bureau (NDB) as part of a broader reorganization of government agencies. The plan is being deliberated by the NPC and is expected to be finalized soon. …

Continue Reading China Reveals Plan to Establish a National Data Bureau

On February 24, 2023, the Cyberspace Administration of China (“CAC”) released the final version of the Measures on the Standard Contract for the Cross-border Transfer of Personal Information (“Measures”) (only available in Chinese here), including a template contract (“Standard Contract”) accompanying the Measures.  The Measures will take effect on June 1, 2023, but are subject to a 6-month grace period to allow companies time to bring their activities into compliance.

The finalization of the Measures marks another important step forward in the establishment of China’s cross-border data transfer framework.  With implementing rules for all three lawful transfer mechanisms now in place, China appears to be entering into a new phase where cross-border transfer activities will be more closely regulated and enforcement actions are more likely to arise for non-compliance. …

Continue Reading China Finalizes Standard Contract for Cross-Border Transfers of Personal Information

On August 31, 2022, one day before the Measures for Security Assessment of Cross-border Data Transfer (“Measures”) were scheduled to take effect, the Cyberspace Administration of China (“CAC”) released a first edition of its guidance on how organizations should complete the security assessment application (“CAC Guidance”). Covington’s previous posts on the Measures can be found here.…

Continue Reading China Releases Guidance on Cross-border Data Transfer Security Assessment Application

On Episode 19 of Covington’s Inside Privacy Audiocast, Dan Cooper and and Yan Luo discuss the key provisions of China’s draft SCCs, compare the draft legislation with the GDPR, and talk through actions that companies should be considering in order to comply with the new cross-border data requirements.

This audiocast episode is repurposed from a…

In addition to the two developments we reported on in our last blog post, on July 7, 2022, the long-waited, final version of the Measures for Security Assessment of Cross-border Data Transfer (《数据出境安全评估办法》, “Measures”) were released by the Cyberspace Administration of China (“CAC”).  With a very tight implementation schedule, the Measures will take effect on September 1, 2022.  The full text of the Measures can be found here (currently available only in Mandarin Chinese).

In this blog, we highlight a few key takeaways from the final Measures.…

Continue Reading China Releases Measures for a Security Assessment of Cross-Border Data Transfers To Take Effect in September 2022

After more than seven months since China’s Personal Information Protection Law (《个人信息保护法》, “PIPL”) went into effect, Chinese regulators have issued several new (draft) rules over the past few days to implement the cross-border data transfer requirements of the PIPL.  In particular, Article 38 of the PIPL sets out three legal mechanisms for lawful transfers of personal information outside of China, namely: (i) successful completion of a government-led security assessment, (ii) obtaining certification under a government-authorized certification scheme, or (iii) implementing a standard contract with the party(-ies) outside of China receiving the data.  The most recent developments in relation to these mechanisms concern the standard contract and certification.…

Continue Reading Cross-Border Data Transfer Developments in China

On Episode 16 of Covington’s Inside Privacy Audiocast, Dan Cooper, Yan Luo and Zhijing Yu discuss the implications of China’s Personal Information Protection Law (PIPL) for companies with data or doing business in China. The law, which entered into force on November 1, is the first comprehensive personal information protection law in China and…

On Aug. 20, 2021, the Standing Committee of China’s National People’s Congress promulgated China’s Personal Information Protection Law, which will take effect Nov. 1, 2021. Serving as China’s first comprehensive law in the personal information protection area and based on China’s Constitution, the PIPL aims to “protect the rights and interests of individuals,” “regulate personal information processing activities,” and “facilitate reasonable use of personal information” (Article 1).
Continue Reading Analyzing China’s PIPL and How It Compares to the EU’s GDPR