China drafts rules to protect IP, ban fake reviews, protect user data and more

China's massive growth in the tech sector has been met with many concerns over the last few years. As China continues to expand with massive conglomerates like Tencent, many are calling for stricter regulations.

As it turns out, China is planning to increase regulations on its booming tech market. Despite years of free reign, the country has already drafted a large selection of rules that its tech companies will have to abide by.

China introducing new tech sector rules

China's State Administration for Market Regulation (SAMR) recently issued a draft for its new rules for tech companies. In a brief overview, the new regulations covered many areas that the country has been criticised for in the past.

For starters, the regulations will be protecting intellectual properties, an area where China has overwhelmingly faltered. Furthermore, SAMR aims to ban algorithms which promote goods and services or create fake reviews.

Additionally, new rules on to cull companies interfering with risks using technology. By targeting commonly used Forced Exclusivity arrangements, tech companies will finally be able to battle against rivals like Tencent.

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Traffic hijacking no more

One of SAMR's most daring new rules is the crackdown on traffic hijacking. This means that companies no longer illegally acquire rival companies’ data or use algorithms to influence users’ decisions.

Furthermore, these new rules restrict Chinese tech companies from creating smear campaigns. Spreading fake reviews, misinformation and lies about rival companies will be strictly prohibited. Additionally, commonly used tactics like coupons and cash rewards in favour of review manipulation will also be banned.

Overall, these new rules do appear to be targeting some of the worst areas of Chinese tech companies. It's a positive change for everyone, but will companies respond by creating new schemes? Absolutely.

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