Introduction

China has taken another decisive step toward reshaping its digital governance framework by proposing stricter rules governing how internet platforms and mobile applications collect personal data. The move reflects growing regulatory concern over widespread data misuse, opaque consent practices, and the unchecked expansion of data harvesting across China’s vast online ecosystem.

The draft regulations, released in early January 2026, signal that authorities intend to move beyond broad legislative principles and enforce granular, operational controls over how personal information is gathered, processed, and shared online.

Regulatory Context: Closing Gaps in Data Protection Enforcement

The proposed rules were issued by the Cyberspace Administration of China, China’s top internet watchdog. While the country already enforces some of the world’s toughest data laws through the Personal Information Protection Law and the Cybersecurity Law, regulators have repeatedly flagged ongoing compliance failures by app developers and online platforms.

Investigations over recent years revealed widespread practices such as forcing users to consent to unnecessary data collection, embedding third-party tracking tools without disclosure, and collecting sensitive personal information unrelated to core app functions.

The new draft rules are designed to address these persistent enforcement blind spots.

What the Draft Rules Aim to Change

At the core of the proposal is a clear shift toward data minimization and informed consent. Companies will be required to justify every category of personal data they collect and demonstrate that it is essential for the service being offered.

Key provisions outlined in the draft include:

• Mandatory clarity on what personal information is collected and for what purpose
• Explicit consent requirements that are easy to understand and withdraw
• Prohibitions on collecting data beyond what is necessary for basic functionality
• Restrictions on denying services when users refuse to provide non-essential data

The draft also strengthens user rights by reinforcing transparency and limiting coercive consent mechanisms commonly embedded in mobile apps.

Scrutiny of Third-Party Software and SDKs

One of the most significant aspects of the proposal is its focus on third-party software development kits. Regulators have identified SDKs as a major source of unauthorized data leakage, often operating in the background without users’ knowledge.

Under the new framework, app operators will be held accountable for the behaviour of all third-party components integrated into their services. This places additional compliance obligations on companies to audit, monitor, and control how external code interacts with user data.

Implications for Technology Companies

If implemented, the rules are expected to raise compliance costs across China’s technology sector. App developers, social media companies, fintech platforms, and e-commerce firms will need to redesign data collection flows, update privacy disclosures, and implement stricter internal controls.

Smaller developers may face particular challenges in meeting the technical and legal requirements, while larger firms could see increased regulatory inspections and penalties for violations.

Public Consultation and Regulatory Trajectory

The draft regulations have been opened for public comment, with feedback accepted until early February 2026. Once finalized, enforcement is expected to be swift, reflecting Beijing’s broader strategy of asserting tighter oversight over digital infrastructure and data assets.

The move aligns with a wider regulatory pattern in China, where personal data is increasingly treated as a strategic resource subject to state supervision rather than a commercial asset freely exploited by private firms.

Expert Commentary

Policy analysts note that the proposal reinforces China’s long-term digital governance goals, combining consumer protection with national security considerations. By targeting excessive data collection at the application level, regulators aim to curb systemic risks and reduce the scale of data exposure in the event of breaches or misuse.

The rules also send a clear message to technology companies that compliance will be judged not just on policy documents, but on actual technical implementation.

Outlook

As China continues to refine its data governance regime, companies operating in the country should expect closer scrutiny of their data practices and less tolerance for ambiguous consent models. The draft rules mark another step toward a tightly regulated internet environment where transparency, necessity, and accountability define how personal information is handled.

Once finalized, the regulations could significantly influence how digital services are designed, both within China and by global firms seeking access to its market.