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China Issues New Regulations on Facial Recognition Technology

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China’s cyberspace regulator, the Cyberspace Administration of China (CAC), has introduced new regulations governing the use of facial recognition technology, emphasizing that individuals should not be compelled to use facial recognition for identity verification. The move comes in response to growing concerns about data privacy and the widespread deployment of this technology across various sectors.

The new rules, set to take effect in June, stipulate that individuals who do not consent to identity verification via facial recognition should be provided with alternative methods that are reasonable and convenient. This regulation aims to curb practices such as using facial recognition for tasks like hotel check-ins or accessing gated communities, which have become more common in recent years.

The CAC also stresses that companies collecting facial data must obtain explicit consent before processing any information. Although the regulations do not address the use of facial recognition by security authorities, they require that any area where the technology is deployed must display clear signage informing the public.

These regulations are part of broader efforts by China to balance the use of advanced technologies like AI and facial recognition with privacy concerns. Recent surveys have shown widespread public anxiety about the potential misuse of such technology. In response, previous legal measures like the Personal Information Protection Law, which came into effect in November 2021, have mandated stricter controls on the collection and use of personal data.

China’s Criticism of CK Hutchison Deal Increases Stakes for TikTok U.S. Sale

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China’s recent criticism of CK Hutchison’s (0001.HK) move to sell its ports business has raised the political stakes for major Chinese business divestments, particularly the potential sale of TikTok’s U.S. assets. This criticism is seen as a precursor to increased scrutiny of deals involving Chinese companies selling to American buyers, analysts suggest.

CK Hutchison’s decision to sell assets near the Panama Canal to a BlackRock-led consortium on March 4 has drawn attention from Beijing, which views the sale as a betrayal of Chinese interests. The Hong Kong and Macau Affairs Office reposted commentaries accusing CK Hutchison of neglecting national interests, with Chinese regulators launching an investigation into the deal. This follows previous concerns from U.S. President Donald Trump, who praised the transaction, calling it a “reclaiming” of the canal.

The political ramifications of CK Hutchison’s sale are seen as a significant indicator of how Beijing might respond to other high-profile sales, such as ByteDance’s potential divestment of TikTok’s U.S. operations. Chinese officials have made it clear that they do not want ByteDance to be forced to sell TikTok to U.S. investors, indicating a broader political sensitivity surrounding Chinese companies’ control over their operations and the potential for U.S. intervention.

China’s reaction to the CK Hutchison deal underscores its attempt to project a strong stance against U.S. pressure while also balancing the desire to maintain diplomatic relations with the United States. As tensions between the U.S. and China continue to escalate, the scrutiny of these high-stakes transactions highlights the complex political and economic dynamics at play.

Baidu Denies Data Breach Amid Controversy Over Executive’s Daughter

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Baidu, one of China’s largest search and cloud service providers, has denied allegations of an internal data breach after the teenage daughter of a senior executive was accused of posting personal information online. The controversy erupted when social media users alleged that the daughter of Baidu vice president Xie Guangjun had leaked private details, including phone numbers, during an online dispute.

In response, Baidu stated that neither employees nor executives have access to user data and that the leaked information originated from illegally obtained databases hosted on foreign platforms. The company also announced that it had filed a police report to counter misinformation, including claims that Xie’s daughter had access to Baidu’s databases.

Xie, a member of Baidu’s cloud division, apologized for his daughter’s actions, asserting that she had acquired the data from overseas social media sites. His statement, reported by Chinese media, was shared on his personal WeChat account.

The incident comes as China tightens data security laws to curb the sale of private information, an issue exacerbated by illicit data brokers. The controversy has impacted Baidu’s stock performance, with shares dropping over 4% in Hong Kong trading on Thursday morning.