China passes tough new online privacy law

China on Friday (Aug 20) passed a sweeping privacy law aimed at preventing businesses from collecting
sensitive personal data as the country faces an uptick in Internet scams and Beijing targets tech giants
hoovering up personal data.

Under the new rules passed by China's top legislative body, state and private entities handling personal
information will be required to reduce data collection and obtain user consent.

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The Chinese state security apparatus will maintain access to swathes of personal data, however.

Beijing has long been accused of harnessing big tech to accelerate repression in the northwestern
Xinjiang province and elsewhere.

The new rules are also expected to further rattle China's tech sector, with companies like ride hailing
giant Didi and gaming behemoth Tencent in regulators' crosshairs in recent months over misuse of
personal data.

Chinese tech stocks including Alibaba and Tencent dipped after Friday morning's announcement.

The law aims to protect those who "feel strongly about personal data being used for user profiling
and by recommendation algorithms or the use of big data in setting [unfair] prices," a spokesman
for the National People's Congress told state news agency Xinhua earlier this week.

It will prevent companies from setting different prices for the same service based on clients'
shopping history.