China’s internet regulators have introduced a proposal for a National Digital Identity system that aims to centralize online verification processes. The Ministry of Public Security and the Cyberspace Administration of China unveiled the draft document, which seeks public feedback by August 25.
The proposed system will provide a single ID for internet use, which would take two forms: an alphanumeric identifier and an online credential. Both will correspond to an individual’s real-life identity without revealing plaintext personal information.
According to Manish Jain, principal research director at Info-Tech Research Group, the National Digital ID system could bring several benefits. These include improved user trust, reduced fraud, and standardization of Know Your Customer (KYC) regulations. Additionally, it would lessen the data handling burden for organizations. However, the implementation of such a system also poses challenges. Businesses will need to invest in integrating the digital ID with their infrastructure, ensuring compliance with new regulations, training consumers, and enhancing privacy protections. They may also be required to purge existing personal data and replace it with the new digital ID credentials.
The proposal indicates that the National Digital ID system could be launched by the end of 2024, following the public consultation period. This system is somewhat similar to other countries’ digital identity systems, such as India’s Aadhaar and France’s France Connect. However, a key difference lies in the governance structure. In China, the responsibility for regulatory accountability and operational governance will rest with the Public Security Department and the National Cyberspace Administration, raising concerns about centralized data control by the government.
The proposal has sparked significant public discussion, with many Chinese citizens expressing concerns about the current excessive access to personal information by various apps. Some experts, however, caution that the centralized control of a national internet ID could lead to increased government surveillance and social control. Dr. Rose Luqiu, an assistant professor of journalism at Hong Kong Baptist University, highlighted the potential impact on people’s online behavior due to heightened monitoring by regulators.
Legal scholars have also voiced concerns about the implications of such a system. Lao Dongyan, a law professor at Tsinghua University, warned that the protection of personal information could be a pretext for routine social control, drawing parallels to the government’s health code app used during the Covid-19 pandemic. Shen Kui, a professor at Peking University, argued that a unified internet ID could deter people from using the internet due to fear of increased surveillance.
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