Chinese IT Firms take an Unusual Step by Disclosing to the top Regulator Information about their Treasured Algorithms.


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Chinese IT firms take an unusual step by disclosing to the top regulator information about their treasured algorithms.

Chinese IT behemoths have given the nation’s potent cyberspace regulator information about their prized algorithms.

It happens after China passed a legislation in March that controls how digital companies utilise recommendation algorithms.

Significant businesses, including Alibaba and Tencent, are mentioned in the file along with brief summaries of their algorithms for particular products.

As Beijing seeks greater control over its domestic internet industry, Chinese technology firms took an unusual step by disclosing the specifics of their treasured algorithms to the nation’s regulators.

One of China’s most powerful authorities, the Cyberspace Administration of China, on Friday published a list of 30 algorithms from firms like e-commerce giant Alibaba and gaming behemoth Tencent, along with a brief explanation of each one’s function.

It happens after China passed a legislation in March that controls how digital companies utilise recommendation algorithms. The regulations call for businesses to seek licences in order to offer news services and allow customers to opt out of recommendation algorithms.

The success of many Chinese tech companies can be attributed to algorithms. Using data about the user, they can be utilised to target people with products or movies.

Beijing, however, has tightened regulations on China’s technology sector over the past almost two years in areas like data protection and antitrust in an effort to restrain the influence of the nation’s titans that have developed, largely unchecked, over a few years.

The March law mandates that businesses submit information about their algorithms to the internet regulator.

In the public filing, there are little specifics. According to the CAC filing, an algorithm created by ByteDance for Douyin, the Chinese counterpart of TikTok, uses click-through and like-through data to suggest images, movies, goods, and services that consumers may find interesting.

Although the CAC’s public filing is brief, it’s not apparent how much knowledge the regulator had of the inner workings of the algorithms used by the IT companies.

Alibaba, Tencent, Baidu, ByteDance, and NetEase have all been contacted by CNBC for comment.

It is uncommon for China to take action to establish an algorithm registration mechanism. Although European legislators are presently considering restrictions regarding the use of artificial intelligence, neither the United States nor the European Union have yet to enact legislation comparable to that in China.


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