China’s primary internet regulator, the Cyberspace Administration of China (CAC), has released an expansive second draft of the 'Measures for the Administration of Internet Information Services.' This major legislative update, co-drafted with the Ministry of Industry and Information Technology and the Ministry of Public Security, signals a decisive shift toward a more granular and proactive governance model for the nation’s digital ecosystem. The proposed rules represent the most significant update to China’s foundational internet laws since the year 2000, codifying years of ad-hoc crackdowns into a permanent, multi-tiered regulatory framework.
At the heart of the revision is a formal requirement for all internet services to adhere to the leadership of the Chinese Communist Party and promote 'Socialist Core Values.' This is no longer merely a rhetorical flourish but a legal baseline for any platform operating within the country. The measures explicitly link the health of the 'online ecosystem' to national security, creating a legal mandate for platforms to proactively purge not only illegal content but also 'harmful' information that contradicts state narratives or social stability.
One of the most impactful additions is the creation of a 'Smart Information Service' category, which targets the burgeoning field of Generative AI and algorithmic recommendations. For the first time, the law mandates transparency in how these models are trained and deployed, requiring providers to use data from 'legitimate sources' and ensure their outputs do not infringe on intellectual property or disrupt the 'social order.' Crucially, the draft also addresses the gig economy, requiring that algorithms used for labor scheduling be fair and transparent to prevent the exploitation of delivery drivers and service workers.
Beijing is also tightening the leash on the 'Self-Media' (zimeiti) sector by introducing specific regulations for accounts with 'significant influence.' These high-reach users will face stricter verification processes and higher liability for the information they disseminate. Platforms will be required to tag the professional credentials of accounts posting on sensitive topics like finance, education, and healthcare, effectively ending the era of anonymous or unverified expert commentary on the Chinese web.
The revised measures introduce a formidable 'toolbox' of enforcement mechanisms, including the formalization of 'Special Management Shares'—or 'Golden Shares'—for news and media entities. This allows the state to maintain a direct hand in the strategic direction of private internet firms. Financial penalties for non-compliance have been drastically increased, with fines reaching up to 10 million RMB for severe violations, alongside the potential for permanent blacklisting of company executives from the industry.