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China is the country with the best technology in the world and they continue to advance

Alvaro Salazar
6 min read

The Asian powerhouse China needs to safeguard its digital dominance with drastic measures, for example, a cryptocurrency ban or a guideline limiting the information assortment of its residents.

China is the country with the best technology in the world and they continue to advance

China is finding a way to secure its advanced dominance. This is how the latest movements carried out by Beijing are deciphered, which has long supported its ability to displace the huge technological organizations (its own and others) and ensure that what happens on the Internet cannot dissolve state power.

This is the stage of the statement last week: the public power is banning digital forms of money. At this time it will not be feasible to work with them in the Asian power, so the main virtual money allowed will be the virtual yuan.

This is not the main meaningful focus that has been broadcast lately in the digital circle: In November, the country's first information security directive will go into effect. The Personal Data Protection Law (PIPL) establishes rights for residents such as those granted by the General Data Protection Regulation (RGPD) of the EU.

What will happen then?

Organizations should collect the minimum of individual information that can be expected and keep it in their possession for the shortest possible time. For this, they will need the prior consent of the clients, who may also demand the transmission of said information or access to it if they so wish.

Chinese residents have never had these guarantees. The guideline takes effect after a few issues identified as manipulation of individual information raised public awareness on this issue.

The most publicized case was the death in 2016 of a young surrogate from cardiac arrest after discovering that all of her family's investment funds had been stolen through a trick conceived by the disclosure of her information.

Although the limitations of the new guideline do not influence public specialists, who in any case can examine residents with computer devices, the message is clear: the end of everything goes.

Important features of this theme

This is the most prominent aspect of the guideline: it fully influences all organizations working in China, including all kinds of external companies operating in the country. His concentration, to tell the truth, is on the last mentioned.

It seriously limits the exchange of information between the lines. People who need to access that data will need the approval of the ACC, the Council of Cybersecurity China. In a way, it is a method to secure the information produced in China, deciphers Andrea G. Rodríguez, analyst of emerging advances at Cidob (Center for International Affairs of Barcelona).

Monitoring information flows between the lines is anything but a basic matter. The United States and the EU have had their good and bad times in this regard. Sometime between 2000 and 2015, the Safe Harbor Agreement allowed US organizations to bring information collected in Europe home.

Repealed by the Court of Justice of the EU (CJEU) following the revelations of Edward Snowden, who discovered the methodical spy EE. UU.. In some European nations, Brussels and Washington agreed to another agreement in 2016, the Privacy Shield, to allow huge tech organizations to return information to the United States and shut it down there.

How did the CJEU deal with this situation?

The CJEU declared this order invalid in 2020, understanding that the US did not offer adequate guarantees to ensure that information from Europeans would be treated with protection standards equivalent to those of the EU.

China is the country with the best technology in the world and they continue to advance

Google, Facebook, Amazon and some other major US organizations have not stopped data managing EU residents, however, currently do on European soil, which means they need to adhere to the EU guidelines. That is exactly the same thing that will happen from now on in China : they can work, in any case, but according to their principles.

Arguably, China's opportunity towards security can be deciphered as a reaction to Western approaches applied against Asian organizations.

"Specialists are putting reservations to organizations that have information about Chinese residents who open up to the outside world of the country. It is a complementary response to the one that the United States had when President Donald Trump restricted the download of Chinese applications TikTok or WeChat in the nation, "says Luis S. Galán, who has lived in China for more than 10 years and whose advanced improvement organization, 2 Open, works from Shanghai.

Safeguard virtual sovereignty

One of the qualities of digital forms of money is that they anonymize exchanges. Before becoming a vehicle for speculation, bitcoin was a benchmark for individuals who yearned for a financial framework of choice, decentralized and independent by the local area of customers.

If the usual monetary standards, which are currently legitimately delicate, were somehow managed to be forced, the world's national banks, and in this line the governments themselves, would lose part of their objective.

The world has yet to choose how to manage cryptographic forms of money. A few nations, like El Salvador, have accepted them without reservation; others, including the United States and Europeans, are still discussing how to control them. China has made plans to prevent them from actually developing.

They are considered a public security problem, as they can harbor tax evasion, illegal tax collection, extortion and other criminal operations, according to the Central Bank of China. In addition, they represent a danger from a natural perspective, since mining digital forms of money (the interaction by which the frame is monitored and new currencies are produced) requires a huge computational limit, which becomes an immense use of energy..

Stopping digital forms of money and expanding security principles expected from public and global organizations reinforce Beijing's influence on this type of cloud that is the Internet. Chinese specialists are fully aware of the importance of information protection.

"I think that one of the fundamental reasons why it has decided to approve the new PIPL law is because it needs to take care of its public safety", affirms the rationalist Carissa Véliz, creator of Privacy is Power (Debate). "Saving such a large amount of individual information is an immense danger; eventually, the West planned to hack it, similar to how China hacks the West."

For Professor Véliz, the new Chinese administrative structure represents a change in perspective regarding the development of the history of protection. "One of the arguments put forward by Facebook for not being managed was that, if it did, it would not have the option of competing under equivalent conditions with Chinese innovation organizations, which work without guidelines. Currently, that argument no longer works."