New law will still apply
The Chinese government has enacted a replacement law to finish the suppression of technology companies, checks, bans and fines.
Thanks to this new bill, technology companies have enacted information privacy laws with strict rules and regulations, from the gathering of people’s data to how it’s handled.
The Chinese government warns that the corporate are going to be severely punished if it violates these rules.
New information security rules in China
30 technology companies of the Hong Kong Stock Exchange’s Hong Kong Technology Index fell about 4.5% thanks to new information security rules being introduced. Chinese government issued today. This code is for all businesses including Tencent and Alibaba.
Filed at the National People’s Congress
China’s state press agency Xinhua announced that the new information security rules presented at the National People’s Congress today will become on All Saints’ Day and therefore the Tech companies will got to change their structure to completely suits the law.
Why this restriction
Tencent, meanwhile, China’s largest technology and entertainment services provider, says Chinese government restrictions on tech companies will continue . China’s digital technology and services companies dominate the market by accumulating an excessive amount of data. These restrictions are intended to stop this action
by the Chinese government
The Chinese government has addressed market regulations on social networking sites, online taxi service providers, service companies, etc. financial services and other technology companies with none reaction, without worrying of reaction and without taking under consideration the position of investors.
Chinese technology companies
As a result, the stock value of Chinese technology companies has declined. This has affected all sectors like domestic investors, foreign investors and open-end fund investors.
Data storage for patrons
Under the new data protection rules, customers are required to get and approve data on the way to store and process data, which should be stored under certain circumstances and before collecting and storing information.
Overseas Chinese data
Similarly, the Chinese government has imposed strict rules on sending or obtaining data from overseas Chinese. This restriction will protect the info of the Chinese people.
Personal Employees
It also stipulates that every company must personally appoint an employee to verify compliance with government information security regulations.
There are not any restrictions on the service
Similarly, information security rules issued by the Chinese government today state that services shouldn’t be banned to customers albeit they are doing not wish to supply them. information level.
Can’t Dominate
With these restrictions, technology companies can not dominate the large-scale business, especially the monopoly sector. At an equivalent time, limitations can prevail if the service is best .
Competition will increase
This will not only increase competition altogether sectors but also potentially create many new businesses in each area. At an equivalent time, employees aren’t being paid quite they’re currently.
It is also needed to be noted that the Investors have lost faith in Tencent, China’s leading tech and mobile service provider, over the Chinese government’s crackdown and fines.
As a result, China’s Tencent has emerged because the world’s worst-hit and worst-hit company. It lost about $ 170 billion in market price in July alone.
