China’s internet watchdog promises to boost protections for private firms

Cyberspace Administration of China says priorities include advancing the online business environment and protecting enterprise and entrepreneur rights
Social media accounts producing information about public health, legal matters and education will be labelled and subjected to strict review

China’s internet censorship

Vanessa Caiin ShanghaiandBen Jiangin Beijing

Published: 7:00pm, 28 Mar 2023

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China’s top internet regulator has pledged to crack down on online rumours and information breaches violating the rights of private companies as Beijing signals better protection for the private sector while striving to revive the economy.

The Cyberspace Administration of China (CAC)’s work priorities this year include optimising the online business environment and protecting the rights of enterprises and entrepreneurs, CAC deputy director Niu Yibing told a press conference in Beijing on Tuesday.

The latest campaign from the country’s internet watchdog comes as the party’s top leadership makes economic recovery a priority and promises better support for the private sector following its twice-a-decade major leadership transition this month.

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Premier Li Qiang has pledged support for entrepreneurs and the private sector, while vice-premier Ding Xuexiang told the China Development Forum on Sunday that the country would continue to expand market access.

Shen Yue, director of the CAC’s illegal information reporting centre, told the press conference false or inaccurate information emerged from time to time about private enterprises and entrepreneurs.

Shen said this damaged a brand’s image, affected production and operations and caused economic losses and reputational damage for entrepreneurs. The country’s central leadership was “very concerned” about these problems, she said.

The campaign will target misinformation, including offenders who fabricate facts and make subjective assumptions, according to Shen. It takes aim at people who violate entrepreneurs’ rights through defamation and insult and targets illegal use of an entrepreneur’s name or image.

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She said the CAC would guide websites and platforms on how to inspect content and accounts and promptly remove information identified as rumours or infringement of an entrepreneur’s privacy.

It will also strengthen the rights protection mechanism to support enterprises and entrepreneurs when they file complaints, and investigate the violation of private companies’ rights.

Other priorities included in this year’s campaign include targeting misinformation from social media accounts managed by independent content creators. Those producing information in professional fields such as public health, law and justice and education will be labelled and subjected to strict review.

The CAC kicked off a two-month campaign on March 12 targeting social media accounts, including a crackdown on information that “damages the image of the Communist Party and the government”.

The internet regulator also said it would tackle cyberbullying, with strict controls on information posted on websites or platforms’ comment sections.

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Since 2016, the CAC has run an annual campaign dubbed Qinglang, which rolls out a number of work agendas aimed at “cleaning up” the country’s internet.

Last year, the CAC removed more than 54.3 million pieces of what it deemed illegal or harmful online information, over 2,890 apps and mini-programs and shut down more than 7,300 websites.

One striking example is Liu Chuanzhi and Lenovo, the company he founded decades ago and helped become the world’s largest PC maker.

Liu has been accused by various accounts of being a “China traitor”, with complaints relating to a second Lenovo headquarters set up in the United States to allegations that the 78-year-old colluded with Hong Kong businessmen to embezzle state assets.

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Rumours against Liu and his company led some nationalists to boycott Lenovo products, casting a shadow on its domestic operations.

The Chinese Big Tech crackdown in recent years has also contributed to prejudice against the country’s tech executives.

The lack of visibility in China of a slew of Chinese tech executives – from South China Morning Post owner and Alibaba founder Jack Ma to Zhang Yiming, who founded ByteDance, the company behind TikTok – has been interpreted as a vote of low confidence in doing business in the country.