China’s cyberspace regulator announced new rules on Monday banning businesses from forcing individuals to use facial recognition technology for identity verification. The move responds to growing public unease over privacy risks linked to the widespread adoption of the controversial tool.
The Cyberspace Administration of China (CAC) ordered companies to provide alternative verification methods for those unwilling to submit facial data. The regulations, set to take effect in June, mandate explicit user consent before collecting biometric information and require clear signage in areas where the technology is deployed.
Notably, the rules do not apply to China’s public security agencies, which heavily rely on facial recognition to monitor criminal activity, dissenters, and ethnic minorities. The Ministry of Public Security co-approved the regulations but offered no comment on law enforcement exemptions.
Facial recognition has become ubiquitous in China, used for tasks ranging from hotel check-ins to accessing residential complexes. Domestic tech firms like Sensetime and Megvii have driven innovation in AI-powered surveillance systems, investing millions annually to refine the technology.
87% opposing facial recognition technology in businesses like malls
Public pushback has intensified in recent years. A 2021 survey by a state-affiliated think tank found 75% of respondents worried about facial recognition misuse, with 87% opposing its use in businesses like malls. The new rules aim to curb non-consensual data collection but leave enforcement in public spaces unclear.
The regulations build on earlier efforts to address privacy concerns. In 2021, China’s Supreme Court banned mandatory facial scans in public venues, allowing residents to request alternative ID checks. Months later, the Personal Information Protection Law imposed strict consent requirements and penalties for violations.
Analysts say the latest rules reflect Beijing’s struggle to balance surveillance needs with rising demands for privacy. Critics argue exemptions for security agencies undermine progress, citing ongoing use of the technology to suppress dissent.
China leads the global facial recognition market, with its systems exported to dozens of countries. The CAC did not specify penalties for non-compliance but vowed to “safeguard public interests” as the technology evolves.
