In the news: China increases online publishing restrictions, the Apple-FBI tech security dispute gets debated and Qualcomm and Lenovo sign a licensing deal

February 24, 2016 | BY

Katherine Jo &clp articles

This week the government closed the gates to foreign investment in internet publishing services, tech leaders took sides on Apple's "duty" to unlock a terrorist's iPhone for an investigation and Qualcomm signed a new chip licensing deal with Lenovo

China's broad new rules for online publishing have formalized the government's already strict control of the internet and expanded the scope of content stored inside its borders. The new regulations – jointly issued by the Ministry of Industry and Information Technology and the State Administration of Press, Publication, Radio, Film and Television – bans companies with foreign ownership of any kind from engaging in online publishing, although they allow foreign-invested firms to cooperate with local partners on individual projects subject to prior approval. Any content published online, including text, maps, games, cartoons and audio and video files, must be hosted on servers in China. The rules take effect on March 10. Many of the outlined restrictions are already present in existing regulations, but what these Provisions for the Administration of Online Publication Services do is gather the fragmented rules into one comprehensive scheme. The “prior approval” required by foreign companies has replaced the term “security assessment” that was in the 2012 draft version, likely entailing greater scrutiny and discretion by the authorities and uncertainty for foreign owners of online publishing services that use the VIE structure or operate through a local partnership. The Provisions need to be followed up with specific details, and as of now it is unclear how foreign companies like Apple, which runs the App Store in China, or Walt Disney, which offers content through a deal with Alibaba, are affected by the rules. Either way, any local partners will need to apply for this new license. The Provisions also seem to impose rather onerous requirements on online publishers, such as being subject to an annual check and having to record the time, URL and content of everything they upload.

More from CLP:

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]