My goodness. China's cyberspace watchdog, the CAC, just published a long (and unprecedented) set of draft regulations for recommendation algorithms. The short version: they will be tightly controlled. Key points below. 1/ cac.gov.cn/2021-08/27/c_1…
Most interesting to me: Users must be provided with a convenient way to see and delete the keywords that the algorithm is using to profile them. 2/
And there are limits on the types of keywords algos can collect: "Providers ... shall not record illegal and undesirable keywords in the user points of interest or as user tags and push information content accordingly, and may not set discriminatory or biased user labels." 3/
Users must be informed that algorithms are being used to recommend content or products to them, and must be allowed to opt out, and see non-personalized results. 4/
There is a clear concern that algorithms will be used to the detriment of socialist core values. "The algorithm recommendation service provider shall adhere to mainstream values ... actively spread positive energy, and promote the application of algorithms for the better." 5/
Also a clear concern they may be used to manipulate consumers: "Providers shall regularly review, evaluate, and verify algorithm mechanisms, models, data, and application results, etc., and may not set up models ... such as inducing users to indulge or consume high amounts." 6/
Alogs can't be used to "falsely register accounts ... or falsely likes, comment, forwards... manipulate search rankings, control hot topics, ... implement self-preferential treatment, unfair competition, influence online public opinion, or evade supervision." 7/
Protecting kids: Algorithms cannot push info to minors that induce them to imitate unsafe behaviors or bad habits, or profile them in order to encourage internet addiction. 8/
No brutal work conditions for ride-hailing drivers, delivery drivers: "Algos that provide scheduling services to workers shall improve ... platform order distribution, remuneration, working hours, rewards and punishments, [to] protect workers' rights and interests." 9/
No using algorithms for differential treatment: "providers shall not use algorithms to implement unreasonable trading conditions such as differential treatment and transaction prices based on consumer preferences and transaction habits and other illegal acts." 10/
The Party does not want algorithms running amok and influencing public opinion. The CAC will keep records of algos that have "public opinion attributes or social mobilization capabilities," and algos which have such attributes must register. 11/
CAC will also conduct security and safety inspections of recommendation algorithm providers. Algo providers must also set up channels to receive, and respond to, complaints from the public. 12/
Buuuttttt... fines for violations are pretty low. First penalty is a warning. If the violation is serious, max fine is RMB 30,000 (around USD 5,000). This is likely because they need to be payable by small app developers, not just big tech. 13/
That said, if a criminal act has taken place (say, a violation of the upcoming Personal Information Protection Law), then fines could be huge. 14/
As far as I'm concerned, this policy marks the moment that China's tech regulation is not simply keeping pace with data regulations in the EU, but has gone beyond them. 15/
Adding the exact wording here (cuz it's important and also a little vague): "Algorithm recommendation service providers shall provide users with functions to select, modify or delete user tags used in algorithm recommendation services."
English translation ready by DigiChina! Read it - digichina.stanford.edu/news/translati…
I should probably contextualize this - this is not aimed at reducing general consumption. It's aimed at algos that encourage unsustainable or exploitative consumption models. Eg: Ranking fans by number of times they buy a band's album. Idea is you only need one copy of an album.

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More from @kendraschaefer

20 Aug
Here it is! The final text of China's Personal Information Protection Law (PIPL). A quick off-the-cuff translation below of what was changed or added to the final draft. 1/ npc.gov.cn/npc/c30834/202…
1. If personal information is used in automated decision-making [example: marketing / ad algorithms, personalized product recs] , the decision-making must be transparent, and can't be used to impose different transaction terms on different individuals. 2/
What that means in practice: Platforms can't, for example, collect data about users, and then show those users different prices based on the algorithms assumptions about the user's ability to pay. 3/
Read 15 tweets
13 Aug
What does "decoupling" even mean? Is there consensus around a set of metrics that would define it? Maybe I'm not talking to the right people, but no one in my industry has been able to tell me with any conviction what decoupling is, much less whether or not "it" is even possible.
Does 'decoupling' mean less trade? How much less? In what sectors exactly? Does it mean less investment? What do you mean "investment"? Does it mean keeping each other's technology out of each other's networks? What technology? What networks?
This word has bled into the global policy conversation and become a talking point with poor strategic and logical foundation. Data analysts struggle to map the ramifications, because the word itself is unclear.
Read 5 tweets
2 Aug
Chinese regulators to off-campus education (incl edtech): "We know your stocks are falling, but tough cookies - you are putting too much pressure on parents and are detrimental to on-campus education, so we're restructuring this industry permanently." 1/12 finance.people.com.cn/n1/2021/0801/c…
Recap: Recently, China issued "Opinions on Further Reducing the Burden of Students' Homework and Off-campus Training in Compulsory Education" - a policy which effectively kneecaps the off-campus tutoring industry. 2/12
Regulators are well aware of the results: "As of the close of the market on July 27, a number of U.S.-listed Chinese concept stocks have fallen by more than 90%, and 11 companies have fallen by about 80%, with education stocks accounting for the vast majority." 3/12
Read 12 tweets
1 Aug
New rules are coming for Chinese companies seeking to list abroad. Chinese policymakers are trying pretty hard to assure markets that Chinese companies will still be allowed to IPO overseas - but they will need to follow new rules in doing so. 1/14 finance.people.com.cn/n1/2021/0801/c…
"The 30th meeting of the Political Bureau of the CPC Central Committee proposed to improve the regulatory system for domestic enterprises listing overseas." 2/14
"This is not only a practical matter of improving relevant regulations and standardizing the behavior of relevant enterprises in response to a changing situation, but also reflects China's firm determination to promote opening up and make use of dual sources of capital." 3/14
Read 14 tweets
16 Jul
Major news this week on China's social credit system. Best part: there's finally a (draft) official list of what types of data / records are being included in citizen, corporate, and org social credit files, and where those records come from. 1/24 ndrc.gov.cn/yjzxDownload/2…
We triangulated this last year by looking at the tech docs that describe what types of files are supported for sharing across gov-run social credit networks. We then cross-referenced that against state agencies which generate those records - but there are now more deets. 2/24
So I'm translating the draft here - all 16 record types the national government is gathering on companies, citizens, and organizations under China's social credit system - what types of records, who collects and submits them, and who they are collected on. 3/24
Read 20 tweets
8 Jul
An opinion piece today on people.cn - The best take I've read so far on Beijing's views and motivations re: crackdown on Didi, IPOs and the move to reign in internet companies. Some key quotes below. 1/x finance.sina.com.cn/tech/2021-07-0…
Tech companies have been in an era of "barbaric growth": "The so-called end of the barbaric era means that in addition to laying down systematic rules, the rules needs to be truly implemented to maintain healthy [market] order." 2/16
"The implementation of China's cyber security review mechanism indicates that Chinese Internet companies will officially bid farewell to the barbaric growth stage." 3/16
Read 17 tweets

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