Chinese phone purchases and facial recognition

Purchasers of new mobile phones in China now must have their faces scanned.

As of December 2019, the Chinese government have implemented a new rule that all Chinese citizens registering new sim cards, must have their faces scanned by facial recognition technology. The images are checked against identity information which is held about the phone purchaser online.

The new rules were first communicated in September 2019 and stores have had approximately two months to implement the relevant technology to undertake the scans. The identity check for phone purchasers was already quite rigorous in China before the new rule came into force. Purchasers were required to produce their national ID card and have their photos taken. The new face scanning process is intended to verify that the purchaser is the genuine holder of the national ID card provided. Aside from the new technology, Chinese citizens may not transfer their phone numbers to other people either.

The Chinese ministry of industry and information says the aim of the new facial recognition scanning is to “protect the legitimate rights and interests of citizens in cyberspace”. In a country where the 845 million internet users predominantly access the internet via their phones, the Government suggests that this is one of the best methods to control online fraud and stop terrorism. However, others are sceptical of the new rules and see them as yet another excuse for the Chinese government to mass-monitor its citizens and for China to increasingly become a surveillance state.

The Chinese government has already come under scrutiny on a few occasions recently for not properly regulating the way high-tech and big data is being used to monitor its citizens. By way of example a university in Najing caused an uproar when parents found out that their children were surrounded by facial recognition software intended to monitor the students’ attendance and focus during lectures.

Although China is a world leader when it comes to facial recognition technologies, and despite these technologies fast becoming an integral part of daily life (for example being used to purchase items in supermarkets), Chinese citizens are becoming increasingly concerned about poor regulation, data breaches and a lack of consent.

The implementation of a Social Credit System by the Chinese government in 2014 suggests that Chinese citizens’ concerns are not unfounded. The system uses fiscal, surveillance and government data to give each citizen a social “ranking”. This data includes information about a person’s social media activity, credit history, online purchases and the people each citizen associates with. A citizen’s Social Credit score can increase when they carry out deeds viewed as positive, such as donating to charity or buying nappies. The score can equally decrease when the individual carries out what are perceived to be negative actions such as incurring a speeding fine, purchasing alcohol or blocking the pavement.

Life is made simpler for those with higher social credit scores, with higher ranked individuals finding it easier to rent properties without a deposit or getting discounted energy bills. Lower ranking individuals may have their internet speed cut or be prohibited from buying plane tickets, appearing on dating websites and enrolling their children into a school of their choosing.

The smooth-running of the Social Credit system is facilitated by the high levels of surveillance prevalent in China. Aside from the new phone purchase rule, the system already benefits from the 170 million plus CCTV cameras situated throughout the country. Despite the five most surveilled cities in the world being in China, the Chinese government still intends to install more cameras, with a plan for 400 million new cameras by 2020.

The combination of the above factors makes it seem as if China is fast becoming an example of the sort of dystopian society technology is capable of producing. However, we in the UK should not be too quick to point out the faults in other societies without also being aware and critical of the faults in our own. By way of example, the 6th most surveilled city in the world is London. If it weren’t for certain Chinese cities, London would be the most surveilled city in the world, with approximately 1 camera for every 14 people!

The use of technology in China, the UK and elsewhere in the world should stand as a reminder that it is not in fact the technology itself that is inherently bad or good, but instead the hands the technology falls into and what the controller of the technology decides to use it for.

Getting this balance right is complicated further by the fact that (depending on the way they have been influenced by culture, norms and past experiences) one person’s technological dystopia is another person’s technological utopia! Referring back to the new facial scanning rule in China for example; although there are many dissenters, there are equally scores of Chinese who believe this technological implementation is a necessary safeguard that will protect their interests online and help to promote a fairer, less fraudulent society.

Amanda is one of our legal tech experts specialising in Employment law.