China has passed a sweeping data protection law that is set to impose strict control measures on the private sector’s handling of personal data, building on an already expansive crackdown on the country’s tech sector that has rattled global stock markets.
The personal information protection law, passed through the Chinese Communist Party’s ceremonial legislature on Aug. 20, will require organizations and individuals to have a clear and reasonable purpose to “collect, use, process, transfer, trade, provide, or publicize other people’s personal information,” according to the text released by the National People’s Congress. It also requires companies to obtain individuals’ consent before collecting their personal data.