China’s new draft rules to further tighten control on tech sector

China has moved once again to tighten control of its technology sector, publishing detailed rules aimed at tackling unfair competition and companies’ handling of critical data. Tuesday’s draft regulations are the latest in the government’s change in stance even as it has issued hefty fines to companies including e-commerce giant Alibaba Group and social media company Tencent Holdings as part of a widening crackdown. “The proposed regulations’ specificity evidences a clear set of priorities in setting the ‘rules of engagement’ for online competition,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. “If promulgated, the regulations will likely increase compliance burdens for transaction platforms, including e-commerce marketplaces and shoppable short video apps.” No hijacking of traffic Internet operators “must not implement or assist in the implementation of unfair competition on the Internet, disrupt the order of market competition, affect fair transactions in the market,” the SAMR wrote in the draft, which is open to public feedback before a September 15 deadline. Soon after the draft tech rules were published, China’s cabinet announced it would also implement regulations on protecting critical information infrastructure operators from September 1.