JAKARTA - The Shanghai Municipal Authority has issued a draft regulation to protect data generated during smart vehicle testing, underscoring China's growing concerns about data security.
In a statement issued on Friday July 16, the Shanghai Economic and Information Technology Commission said it would require entities conducting vehicle testing and demonstrations to properly handle data acquisition, processing, application and transmission.
Data generated in testing and demonstration activities are also not allowed to be sent abroad, unless approved by the relevant authorities, the statement said, adding that the draft law is open for public consultation.
"In addition, the entity must take relevant measures to protect the confidentiality of data, establish a personal information protection system and be prohibited from illegal trade, transfer and disclosure of relevant data," the statement said.
Dozens of automakers, startups and major tech companies in China, from Didi Global Inc. to WeRide and internet search leader Baidu Inc., are accelerating work on self-driving vehicle systems, widely expected to bring about major changes to the transportation industry.
China is in the process of revamping its policies on data privacy and security. The Bamboo Curtain Country is drafting a Personal Information Protection Act and will implement the Data Security Act next September, which requires companies that process 'critical data' to conduct risk assessments and submit reports.
Separately, China's Ministry of Industry and Information Technology on July 12 issued a draft action plan, to develop the country's cybersecurity industry in an effort to better regulate data storage, data transfer and privacy of personal data.
China's Ministry of Industry and Information Technology said the draft three-year action plan is in line with the forecast that the sector may be worth more than 250 billion yuan or about 38.6 billion US dollars by 2023.
The previous weekend, China's Cyberspace Administration proposed a draft rule calling on all data-rich technology companies with more than 1 million users to undergo a security review before registering overseas.
The regulations come after a regulatory investigation from Chinese ride-hailing giant Didi Chuxing for allegedly violating data privacy laws.
Chinese regulators announced an investigation into ride-hailing giant Didi in early July, just days after its New York listing, and then ordered its app to be removed from app stores. They cited "serious violations" of laws and regulations relating to the collection of personal information by the Didi app.
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