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To build a ‘Digital China’, the country must first deal with its rampant black market for personal information

  • Underground trading of personal information has become a professional and industrialised value chain in China
  • The central government is seeking to establish a data governance regime, highlighting the responsibility of online platforms to protect user data

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Underground trading of personal information has transformed into a professional and industrialised value chain in China. Photo: Reuters
Xinmei Shen

When Sharon Liu, a finance professional in the eastern Chinese city of Tianjin, bought a flat through an online brokerage platform late last year, she never agreed to give strangers her personal information. Now, up to three times a day, she receives calls from people she has never met who know her full name and home address.

“They’re seriously disturbing my work and personal life,” said Liu, who answers them for fear of missing important calls. “Given that they know my address and my phone number, I don’t feel safe,” she told the Post.

Liu is not alone. From job seeking sites with lax privacy controls to company insiders actively abetting personal data theft, China is still grappling with data privacy concerns as underground trading of personal information thrives amid Beijing’s push to have the digital sector play a bigger role in China’s domestic economy.
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Without a law dedicated to protecting personal information, and the lack of clear guidelines, China’s enforcement agencies have struggled to keep up with an increasingly skilled industrial chain of insiders and data brokers.

Signage for the digital yuan at a self checkout counter inside a supermarket in Shenzhen. China’s central government wants to build a digital economy but first must ensure that personal information is not abused. Photo: Bloomberg
Signage for the digital yuan at a self checkout counter inside a supermarket in Shenzhen. China’s central government wants to build a digital economy but first must ensure that personal information is not abused. Photo: Bloomberg

“We have to acknowledge that [the situation of] Chinese citizens’ personal information leakage and infringement is grim,” said Steve Zhao, a partner and intellectual property lawyer at the Beijing-based Gen law firm.

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