Well, here they are. Yesterday, China's cyberspace watchdog, the CAC, finalized China's groundbreaking new rules on recommendation algorithms. They take effect in early March. Thoughts on the final version below. 1/11 cac.gov.cn/2022-01/04/c_1…
If you're new to this conversation, here's what I posted on the draft version a few months ago. 2/11 👇
The final version of China's new algorithm rules mostly preserve the rules outlined in the draft, but three new stipulations were added (big thanks to @freefader for doing the heavy lifting on draft and final version comparison). 3/11
Most strikingly, in the final version of China's rules, internet media was banned from using algorithms to "generate synthetic fake news information or disseminate it." 4/11
It's clear to me that Beijing has paid close attention to the impact that fake news has had on US national unity, as is noping right out of that issue before it becomes a bigger problem. 5/11
Another new rule was added on safely recommending content to the elderly, the idea being to ensure algos don't pick up and spread scams and fraudulent posts that could victimize China's rapidly aging population. 6/11
Also, the draft required companies to respond to user requests for info on what data algos gather and what they do. The final version puts that burden on companies, who have to transparently supply it by default. 7/11
The fines for violations have also been raised. The maximum fine in the draft was RMB 30,000 (around USD 5,000). That has tripled to RMB 100,000. 8/11
And here's a geeky but interesting change: The draft included a rule requiring internet companies to let users "select, modify, and delete" keywords used to profile them. In the final version, that was changed to "select and delete" — "modify" was removed. 9/11
That was likely due to technical issues. Many algorithms use pre-set tags (like "conservative" instead of "right-wing"), and allowing users to modify tags could cause coding havoc. Plus, imagine if users mis-spelled tags when changing them. Chaos. 10/11
These rules reflect some of the biggest concerns in Chinese society today — internet content control, aging population, anti-competitive practices — and seek to get out in front of a future where algos are used to corrode social unity or exacerbate market problems. 11/11
• • •
Missing some Tweet in this thread? You can try to
force a refresh
On LinkedIn's exit from China: Last month, Xiao Yaqing, China's Minister of Industry and Information Technology, had a video call with Brad Smith, president of MS US, to discuss "in-depth views on ... Microsoft's development and cooperation in China." 1/13 miit.gov.cn/xwdt/gxdt/ldhd…
Naturally, we don't know what was said during that meeting. Did Xiao insinuate they should get out of social? Totally unrelated? Who knows. What we do know is that LinkedIn is facing increasing regulatory pressure on multiple fronts. 2/13
One, the obvious: Social networks operating in China are increasingly caught in the impossible impasse between Chinese censorship rules and western values. Frankly, it's a miracle LinkedIn survived in China as long as it has. 3/13 axios.com/linkedin-block…
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/
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/
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.
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
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