Weekly #6 Five China stories you need to read: Summer travel rush in China; Real estate not for speculation; Anti-corruption campaign in medical sector

Outside of those in the tourism industry or engaged in cross-border business, most Chinese people don't typically have a strong interest in international travelers

These days, Chinese travelers are busy embracing their first post-pandemic summer vacation with family and friends despite all the heat and crowd. That's certainly what hotels and restaurants would like to see. But what's on the other side of the coin? What is going on in other sectors during this summer season?

GRR’s roundup this week includes five intriguing pieces carefully selected from China's social media platforms. The topics are as follows:

1) Why less international travelers come to China and what is China's response

2) The prices for budget hotels are skyrocketing to go beyond the reach of consumers

3) Real estate is losing its appeal for investment and speculation, the same in big and small cities

4) A powerful anti-corruption storm is sweeping up China's medical system

5) Why is the commonly used face recognition technology put under restraint and how has the regulation changed

The first two articles both discuss travel in China: the first on inbound tourism and the second on domestic tourism. In this summer travel rush, there are apparently far more Chinese tourists than international visitors.

While traveling in China, you were supposed to go through face recognition at the railway station, airport or hotel check-in. But now this technology is restricted in use for privacy reason. The last piece will later go into detail.

Your comments and suggestions regarding the content of this column are continuously welcome and appreciated.

1.Why international travelers don't want to visit China? 老外为什么不爱来中国了？

Overview: The difficulties of international travelers entering China have always been discussed, even before COVID-19. Over the first half of 2023, the recovering inbound tourism in China was still a far cry from the pre-pandemic level. The downturn cannot only be attributed to high air price caused by the pandemic. More importantly, the cumbersome procedures of visa application and possible inconveniences during the trip are holding foreign visitors back. In response, China is now taking measures to falicitate entries and encourage inbound tourism.

This article comes from 旅界 [Tourism Zone News], a WeChat official account that offers updated information about travel trend in China, serving as a bellwether of tourism industry.

Highlights:

一位知乎网友指出，“如果一个美国人想去东亚地区玩，在对目的地没有特定偏好的情况下，他宁愿选择去韩国和日本这两个免签的地方，而不需要花费精力去申请中国签证。”

"If an American wants to travel to East Asia and has no preference for a particular destination, eventually he would rather make South Korea or Japan his choice, because these two visa-free countries can save him the cumbersome procedures applying for a Chinese visa," said a netizen from Zhihu, a Chinese Quora-like question-and-answer service.

值得一提的是，中国香港、澳门地区对世界上绝大多数外国游客免签，许多外国游客也会认为既然到了港澳也就到了中国，不再浪费时间办理中国大陆签证。

Notably, Hong Kong and Macau are visa-exempt to most international travelers across the globe and many of them will think they have already been to China since they have visited these two cities. There is no need to spend time on a visa for the Chinese mainland.

此前，一名正在世界旅行、坐拥25.5万粉丝的韩国博主No mad Shaun将自己前段时间的中国之旅拍成了Vlog，他指出了一些在中国旅游不太便利的地方，引发两国网友热议。

No ma Shaun, a South Korean vlogger with 255 thousand followers, has been travelling around the world and recorded his recent trip to China. In his videos, he pointed out some inconveniences visiting China, which triggered hot discussion from netizens of both countries.

他将中国之旅比喻成“西天取经”，比如视频里他说外国人打车难，还有在中国只能住四星及以上的酒店，但他觉得作为年轻人来讲太贵了。

He compared this trip to "a journey to the West" with many difficulties. For example, as a foreigner, he found it hard to hail a taxi in China and could only live in hotels of four-star or more, which was much too expensive for young people.

还有比如北京的不少景点只接受手机预约，“如果外国人没有中国手机号，那也就无法预约参观。”

He also noticed that for many tourist sites in Beijing, one could only book tickets on the phone. "If a foreigner does not have a Chinese phone number, it will be hard to make a reservation."

对此，一名北京旅行社负责人告诉旅界，“现在外国人跟团游要上电子行程单，上报客人姓名护照信息，某景区还要凭护照购票，然后过行李安检仪，人脸识别系统，确实比较麻烦。”

Regarding this problem, a chief of a tourist agency in Beijing told Tourism Zone News that "for package tours now, we have to submit the international travelers' names and passport information to the e-itinerary. One site even requires their passports to buy tickets, then they have to go through baggage security screening and face recognition. It is indeed a lot of trouble."

上述这些问题，其中一些正在逐步得到解决。

Some of the problems mentioned above are being solved.

7月底，微信、支付宝均发表公告，表示已经完成对境外用户在中国使用移动支付的服务支持，来自全球的运动员、游客，可以在全国使用支付宝享受购物、打车、坐地铁、游览景区等各种便捷服务。

In late July, WeChat and Alipay both announced that they had launched services allowing mobile payment for foreign users in China. Now athletes and travelers from all over the world can enjoy all kinds of convenience in all parts of China through Alipay, including shopping, car-hailing, subway, and sightseeing, etc.

签证方面，8月3日，公安部举行发布会，通报为更好服务保障高质量发展研究推出26条措施。

For visa, Ministry of Public Security of China held a news conference at 3 August, rolling out 26 measures to improve services and ensure high-quality development.

其中写道：对来华商务洽谈、商贸交流、安装维修、参展参会、投资创业等的外国人，来不及在境外办理来华签证的，可凭企业邀请函件和证明材料申请办理口岸签证入境。

It is stated that for international visitors who come to China for activities like business negotiations, trade exchanges, installation and maintenance, expositions and conferences, and investment and startup, they can apply for entry port visa by showing invitation letter and necessary materials to enter China if there isn't time for them to get a visa before arrival.

同时，对因商贸业务需要多次往返的，入境后可以换发3年内多次入境有效商贸签证。”

Meanwhile, for those who need to take more than one trip because of business, after entering China, their visa can be renewed for three-year validity of multiple business entries.

Comments: Taking a trip to a certain place and seeing it by oneself can be an effective way to clear whatever misassumptions that exist. More profoundly, it promotes people-to-people exchanges and economic ties between two countries. China is now improving services to smooth the way for inbound tourists, but it is not being dealt with as somewhat of a imperative priority.

For one thing, domestic tourism still takes the more important role in the market which has its own problems to be solved as indicated by the next article. For another, Chinese people, except for those concerned with the tourism industry or cross-border business, normally do not show a particular interest in international travelers. At the moment they are grappling to afford even budget hotels during the summer travel rush. Thus it can be seen that a country's way of reacting reflects the public's will to some extent.

2. With a monthly salary of USD 2,750, one can't even afford budget hotels: The landscape of China's hotel market has drastically changed 月薪2万住不起汉庭：中国酒店市场格局大变脸

Overview: The article discusses that after the pandemic, hotel prices across China surged, with budget hotels experiencing sharper price increases than mid-to-high-end ones. This trend is especially notable during peak tourist seasons, with a notable shift: many once-affordable budget hotels like "Hanting [汉庭]" and "Rujia [如家]" are now priced beyond the reach of average consumers.

This price surge follows a mismatch between rising travel demand and a slower recovery of hotel supply. Several hotels have terminated three consecutive years of losses, with expectations to recoup previous losses within this year alone. This situation has impacted both leisure and business travelers.

The article comes from 深网 [Deep Web], an original in-depth reporting column launched by Tencent Technology, digging into the hidden stories of popular companies, events, and figures in the TMT (Technology, Media, and Telecommunications) field, exploring the deep logic behind them.

Highlights:

2023年第一季度，华住集团的净利润为10亿元，与2019年第一季度的0.99亿元对比，同比增长了900%多。而首旅酒店2023年第一季度净利润为1.15亿元，同比2019年Q1的0.98亿元增长了约17.3%。

In the first quarter of 2023, Huazhu Group's net profit was RMB 1 billion. Compared with the 99 million yuan in the first quarter of 2019, it increased by over 900 percent. Meanwhile, the net profit for BTG Hotels (Group) in the first quarter of 2023 was 115 million yuan, an increase of about 17.3 percent compared to 98 million yuan in Q1 2019.

华住、首旅等仅是连锁酒店今年经营情况的一角。据《2022年中国酒店业发展报告》显示，2022年我国酒店连锁化率仅为35%，60%以上为民宿等其他住宿酒店。头部连锁酒店又开始赚钱了，那么民宿等其他住宿酒店今年上半年的经营状况如何？

Huazhu Group, BTG Hotels, and others are just the tip of the iceberg in the chain hotel business this year. According to the "2022 China Hotel Industry Development Report", the chain rate of hotels in our country in 2022 was only 35 percent, and more than 60 percent were bed and breakfasts and other lodging hotels. Now that the leading chain hotels have started making money again, how were they in the first half of this year?

“无论是价格还是入住率，我经营的这几栋民宿的收入肯定比2019年时好。推算下来，过去3年的亏损，今年一年就能赚回来。旅游旺季时，一个房间一个月能赚1万。”在本溪做了6年民宿的王芳对《深网》透露。

"Whether it's price or occupancy rate, the revenue from the B & B I run is definitely better than it was in 2019. By my estimate, the losses from the past three years could be recouped this year. During the tourist peak season, a room can earn 10,000 yuan a month," Wang Fang, who has been running a bed-and-breakfast in Benxi for 6 years, revealed to "Deep Web".

王芳的民宿位于本溪知名景区附近，驱车5分钟就能直达小市一庄、本溪水洞、关山湖风景区等多个4A、5A级景区。旅游旺季时，可住6人的整套民宿价格在600-700元/晚，淡季时，也可以做日租房，价格在200元左右。

Wang Fang's bed-and-breakfast is located near a famous scenic area in Benxi, Liaoning Province. It's a 5-minute drive to Xiaoshi Yizhuang, Benxi Water Cave, Guan Shan Lake scenic area, and several other 4A and 5A scenic spots. During the tourist peak season, the price for an entire bed-and-breakfast that can accommodate 6 people is RMB 600-700/night. In the off-season, they can be rented by day for around RMB 200.

“因为都是回头客，旅游旺季时，民宿基本没有空着的时候。有时因为我这边民宿房间不足，我还要帮团游的回头客寻找新的房间。我已经买了新楼（精装修），准备扩大经营。”王芳说。

"Because they are all returned customers, the bed-and-breakfast is almost always full during the peak tourist season. Sometimes, because I don't have enough rooms, I have to help them find new rooms. I've already bought a new building (well-decorated) and I’m planning to expand my business," said Wang Fang.

对此，有OTA从业者对《深网》称，“不少酒店及民宿创业者都有今年不赚钱就再也赚不到钱的急迫感，但新手现在才想入局民宿或者酒店行业并非明智之举。”

In response, an OTA industry insider told Deep Web that "many hotel and B & B entrepreneurs feel a sense of urgency that if they don't make money this year, they'll never make money again. But for newcomers who want to get into the B & B or hotel industry now, it's not a wise move."

今年在促消费、扩内需等政策导向下，旅游业率先复苏，所以热门景区附近的民宿有供不应求之势，但真正赚钱的多是有管理民宿和酒店经验的创业者。如果现在才想投入民宿或者酒店行业，再加上招人和培训，很难赶上这波旅游热的风口。

This year, under the policy guidance of promoting consumption and expanding domestic demand, the tourism industry has recovered first. As a result, there's a huge demand for bed and breakfasts near popular scenic areas. However, the ones really making money are entrepreneurs with managerial experience. If someone is considering entering the industry at this time, facing the need to recruit and train staff, it will be hard to jump on the bandwagon of tourism boom.

Comments: The hotel industry's recovery after the pandemic has led to a clear mismatch in supply and demand, causing rapid price increases. Particularly noticeable are the rises in economy hotels, placing pressure on many ordinary consumers. This phenomenon reflects the swift resurgence in tourism and the asynchronous supply of hotel accommodations. While ending years of losses is good news for the hotel industry, it could also hinder the overall recovery of tourism, especially for budget-conscious travelers.

3.A few words about real estate 随便聊几句房地产

Overview: “Housing is for living in and not for speculation” was first proposed in 2016 to control high property prices in cities, it was included in the 19th National Congress report in 2017 and was repeatedly emphasized over the next few years. However the concept was not mentioned in the meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee in July this year.

This article believes that in the future, houses in China will lose their investment properties and become depreciating products like mobile phones and cars. It predicts that even in first-tier cities, the liquidity of houses will get worse, and everyone is willing to sell their houses for cash. Although the concept of “housing is for living in and not for speculation” has indeed curbed the phenomenon of inflated house prices, but when facing the trend of falling house prices, it has lost its significance.

The article comes from 九边 [Jiu Bian], a WeChat blog focusing on finance, history and economics. This blog, for three consecutive years, has been selected as one of the top 10 most collectible blogs by Evernote.

Highlights:

“房住不炒”已经取得了初步的成功，因为绝大部分城市已经丧失了炒作的可能性，现在在小城市握着好几套房的人，依旧让当地人羡慕，但是长期看来并没有多少价值。

The "housing is for living in and not for speculation" policy has seen initial success, as speculation in the housing market has become nearly impossible in most cities. However, those who own multiple properties in small cities still attract envy from locals, but in the long term, these properties may not remain as valuable.

太多城市房价已经不可能起飞，今后的路径是大概率这样的：

In many cities, house prices are no longer likely to take off, and the future path is possible to be like this:

房价过顶之后，很多有多套房的人开始懊悔，并且下定决心下次房价稍微抬头，就把手里的房子卖掉套现。所以每次出现利好，都会出现一堆抛盘，房价不但不上涨，反而继续跌。随后更多的人加入抛盘，开始不在乎收益了，只希望把手里多余的房子套现即可。

In many cities, housing prices have passed their peak, causing regret among those with multiple houses. They are determined to sell when prices show even a slight increase. As a result, every positive development leads to a flood of listings, causing prices to continue falling instead of rising. Subsequently, more people join in selling their properties, no longer caring about profits, but only aiming to cash out their excess houses.

事实上现在已经有很多城市出现了天量二手抛盘，前些年房地产狂奔时代大家疯狂囤房，现在想高位出货。

Currently, many cities are experiencing an influx of second-hand properties on the market. While in the past few years, people were fervently hoarding properties during the real estate boom, and now they want to sell at high prices.

今后可能慢慢不再提“房住不炒”了，因为没意义了，没啥可炒的了。

In the future, the slogan "housing is for living, not for speculation" may gradually lose significance and fade away because there is no longer anything left to speculate on.

一线的你炒不动，而且流动性极差，也就是说你投资一套你很看好的房子，需要非常非常多的钱，动辄一两千万往上，而且等到需要卖的时候，却发现可能需要半年才能卖掉，因为买得起这种房子的人太少了，有这么多钱的人又不一定能看上你的房子，需要慢慢等有缘人。

First-tier city properties are difficult to speculate on due to low liquidity. Investing in a highly promising property requires a huge sum of money, often reaching tens of millions of yuan (over 1.38 million U.S. dollars). However, when it needs to be sold, it could take up to six months to find a buyer because there are very few people who can afford such properties, and those who have the money may not necessarily be interested in it. Investors have to wait patiently for the right buyer.

很多投资客，本来投资这类资产赚到了，但是由于着急用钱，需要紧急卖掉房子，大幅打折，最后投资了个寂寞，还不如存银行赚得多。

Many investors initially thought they could make a profit from these assets. However, due to urgent needs, they had to sell their properties at a steep discount. Depositing the money in the bank could have earned more than investing.

一线往下的，你敢囤房说不定就砸手里，给你个胆子你去炒。有点像前些年不少人在炒出租车牌照，这两年你再去炒试试。

In cities below the first-tier level, hoarding properties can be much more risky because it may result in financial losses. A few years ago many people were speculating on taxi licenses, but now there are hardly any buyers. The same is true for real estate.

其实炒房者，更类似“趋势交易者”，一旦趋势没了，他们也不玩了。而且房价这东西，从其他国家的经验来看，跟股价没啥差别，涨的时候会远远超过自己应该的价格，跌的时候也会远远跌穿底价，需要很多年才能修复。

In fact, speculators in the real estate are more akin to "trend traders." Once the trend disappears, they lose interest. Moreover, from the experience of other countries, housing prices are similar to stock prices, far exceeding their intrinsic value in bull market and declining dramatically in bear market. It often takes years for the prices to stabilize and recover.

Comments: With an oversupply of housing, China's real estate industry's focus is shifting from expansion to managing existing inventory. This shift is exemplified by frequent discussions such as urban village revitalization during this year's meeting of the Political Bureau. Therefore, the fading of the slogan "housing is for living in and not for speculation" may be a sign that the real estate industry is entering a new stage of development.

4.Medical anti-Corruption storm strikes: average of one hospital director investigated every day 医疗反腐风暴来袭：上半年平均每天“进去”一个院长 | 潜望

Overview: In recent years, the government has been intensifying efforts to combat corruption in the pharmaceutical procurement and medical service sectors in order to reduce the burden on healthcare and sever distorted profit chains in hospitals. Professionals in the pharmaceutical field widely believe that this year's anti-corruption campaign in healthcare is more comprehensive and forceful, as evidenced by the investigation and removal of over a hundred hospital directors and secretaries. The storm of anti-corruption in the healthcare sector has also had a significant impact on the stock prices, pharmaceutical sales representatives and pharmaceutical companies.

This is a report by 腾讯财经 [Tencent Financial and Economics], a WeChat blog focusing on finance, owned and run by Tencent Holdings Ltd.

Highlights:

各医院其实是对医药代表有严格管理的，例如不允许医药代表擅自到医疗重点区域，在非接待时间和地点私下接触医务人员，严重的会列入黑名单管理。

Hospitals actually have strict regulations for pharmaceutical sales representatives, such as restricting their access to key medical areas and prohibiting private contact with medical personnel outside of designated times and locations. Those who violates the rules will be blacklisted.

但医药代表们总有办法：我挂号看病，医生还能不接待我？

However, these sellers can always find a way out: "If I make an appointment to see a doctor, they can't refuse to see me."

7月22日，一份落款为某大学第二附属医院医务处的文件在圈内流传，称一家欧洲大药企的北京分公司两位医药代表陈某、李某在“执纪检查”被查到，要求公司对其开除或调岗，并向医院反馈处理结果。

On July 22, a document inscribed by a hospital's medical affairs department revealed that two pharmaceutical sales representatives from a European company's Beijing branch were caught during a disciplinary inspection. The hospital demanded the company either dismiss or transfer them and requested a result.

医药企业的销售人员有两大类组织形式，一种就是上述欧洲药企那样，所有雇员都受公司管理，出事后公司要担责；另一种，也是国内企业大多采取的，拆掉公司的销售部门，只保留部分创新或者核心业务自营，其他普通业务转为外部代理制，和总部保持若即若离的关系。

Pharmaceutical sales personnel can be categorized into two forms of organization. One is similar to the European company, where all employees are managed by the company and the company is held responsible if anything goes wrong. The other form, which is adopted by most domestic companies, involves dismantling the sales department and retaining only a portion of the innovative or core business of their own operations. The rest of the general business is outsourced to external agents, maintaining a more distant relationship with the headquarters.

8月初，网传国内“创新药一哥”恒瑞医药的“某地办公室被端”、“数据被拿走”。恒瑞方面很快给予了否认，称“公司及下属分子公司、及所有派驻机构没有该情形”。

In early August, there were online rumors that an office of Hengrui Medicine, China's "leading innovative drug company", had been raided somewhere and the data had been taken. Hengrui quickly repudiated rumors, stating that "the company, its subsidiaries, and all dispatched institutions did not experience such a situation."

但恒瑞医药二级市场上，过去一周股票暴跌16%以上，是恒瑞公司有史以来最大的单周跌幅，反映出投资者在对于恒瑞能否安全度过这轮反腐风暴方面的不信任。

However, Hengrui Medicine's stock price plunged by over 16 percent in the past week, marking the largest weekly decline in the company's history. This reflects investors' lack of confidence in whether Hengrui can safely get through this round of anti-corruption storm.

中国新闻网曾披露过，2016年-2019年间，全国百强制药企业中，有超半数被查实存在直接或间接给予回扣的行为，其中频率最高的企业三年涉案20多起，单起案件回扣金额超过2000万元。

Chinanews.com previously revealed that between 2016 and 2019, more than half of the top 100 pharmaceutical companies in the country were found to have engaged in direct or indirect kickbacks. Among these companies, one had been involved in over 20 cases within three years, with a single case involving kickbacks of more than 20 million yuan (about 2.76 million U.S. dollars).

最近一段时间，深交所和上交所提出新的上市审核需求，其中要求中介机构严查拟IPO的医药企业的销售费用。

Recently, the Shenzhen Stock Exchange and Shanghai Stock Exchange have put forward new requirements for initial public offerings, including strict scrutiny of the sales expenses of pharmaceutical companies seeking listings.

这种动向，令不少医药行业之外的投资者、观察者感受到了此轮反腐的力度。

The intensity of this anti-corruption campaign has caught the attention of investors and observers beyond the pharmaceutical industry.

据腾讯新闻《潜望》不完全统计，2023年至今医疗体系的反腐中已经有超155名院长、书记被带走调查，基本不到2天进去一个。这些被抓的，基本都是当地医疗体系名号响当当的人物。有的人在职，有的人已经退休，有的人是被动带走，有的人是主动投案。这都足以见得，这次医疗体系的反腐有多么令人生畏。

According to incomplete statistics from Tencent News' "Qianwang", since 2023, more than 155 hospital directors and secretaries have been investigated as part of the campaign. On average, one for every two days. Those who have been arrested are basically prominent figures in the local medical system, some currently in office, some retired. Some were taken away involuntarily, and some turned themselves in. This showcases the deterrence of the anti-corruption campaign in the medical system.

一个医药代表在社交平台上坦言，自己的两个客户已经失联半个月了，怕是已经被叫去喝茶了。

A pharmaceutical sales representative admitted on social media that two of their clients have been out of contact for half a month. They fear that their clients have been investigated for corruption.

Comments: Corruption in the medical field is often related to the kickbacks associated with the purchase of drugs and medical equipment. Professor Li Ling, an authoritative expert on healthcare reform, believes that medical corruption is linked to China's long-standing practice of "hospitals funding their operations with profits from overpriced drugs", which was introduced by transnational corporations. The government has been continuously cracking down on kickback practices. This year’s anti-corruption campaign reflects China's commitment to putting people and their lives above all else. However, corruption takes various forms and is difficult to eradicate. Li believes that "providing healthcare workers with transparent and dignified income is fundamental to curbing medical corruption".

5.Facial recognition to be regulated in hotels, banks and stations 宾馆、银行、车站将被限制“刷脸”

Overview: Indeed, facial recognition technology is not a novelty in China. People can use "face scan" payments to make purchases in stores. However, while life becomes more convenient, personal privacy may also be at risk of infringement. According to the article, in 2019, a wildlife park in Hangzhou was sued for collecting and using facial recognition information without proper consent.

This article tells the new policy on the limitations on the usage of facial recognition in public and commercial spaces. It specifies that personal identification devices cannot be installed in private spaces, and that businesses such as hotels, banks, and museums cannot force individuals to undergo facial recognition verification unless required by law or regulations. It also emphasizes the importance of protecting individual privacy and legal rights when using facial recognition technology.

This article comes from 财经e法 [Caijing e-Law], a WeChat blog focusing on legal, governance, and ethical issues in the internet industry.

Highlights:

《规定》要求，在公共场所、经营场所使用人脸识别技术远距离、无感式辨识特定自然人，应当为维护国家安全、公共安全或者为紧急情况下保护自然人生命健康和财产安全所必需。

According to the "Regulations on Security Management of Facial Recognition Technology Application", facial recognition technology can only be used in public places and business premises to remotely and unobtrusively identify specific individuals if it is necessary to safeguard national security, public safety, or protect the life, health, and property of individuals in emergency situations.

近几年，人脸识别技术的应用多次引起了舆论的关注。

In recent years, the application of facial recognition technology has garnered public attention many times.

2019年，为提高人物同检效率，北京地铁站拟采用使用人脸识别技术实现乘客高效安检，据《财经》探访，彼时部分地铁站安检区域已安装具备人脸识别功能的安检门，加装了人脸识别摄像头。尽管该措施最终并未落地，但仍引起了学界对大规模采集人脸信息隐含风险的担忧。

In 2019, Beijing subway planned to use facial recognition technology to improve passenger security checks and increase efficiency. According to a report by Chinese financial magazine Caijing, at that time, some subway stations had installed security gates with facial recognition devices and added cameras in the security check areas. Although this measure was not eventually implemented, it raised concerns among academics regarding the potential risks associated with large-scale collection of facial information.

同样在2019年，浙江理工大学法政学院特聘副教授郭兵诉杭州野生动物世界有限公司（下称“野生动物世界”）一案引起了业内对合规采集、使用人脸识别信息的广泛讨论，被称为“人脸识别第一案”。

In 2019, a case involving Guo Bing, a specially-appointed associate professor at the Faculty of Law and Politics, Zhejiang Sci-Tech University, and Hangzhou Wildlife World Co., Ltd. sparked wide-ranging discussions within the industry on legitimate collection and use of facial recognition information. It’s known as the "first facial recognition case".

2019年，由于杭州野生动物世界将年卡入园方式由指纹识别调整为人脸识别，要求郭兵进行人脸激活，否则无法入园。在协商未果的情况下，郭兵起诉杭州野生动物世界。2021年4月，该案二审宣判，二审法院认定，野生动物世界欲将其已收集的照片激活处理为人脸识别信息，超出事前收集目的，违反了正当性原则，最终法院判决，野生动物世界应当删除郭兵办卡时提交的包括照片在内的面部特征信息，由于指纹识别闸机停止使用，故亦应删除郭兵的指纹识别信息。

In 2019, because Hangzhou Safari Park changed its annual pass entry method from fingerprint recognition to facial recognition, Guo was required to activate his face in order to enter the park. With no resolution reached through negotiation, Guo filed a lawsuit against the park. In April 2021, the court of second instance ruled that Safari Park's intention to process the collected photos as facial recognition information went beyond the original purpose of collection, violating the principle of legitimacy. The court ordered Safari Park to delete Guo's facial information, including the submitted photos when he applied for the annual pass. Since fingerprint recognition gates were no longer in use, the park also needed to delete Guo's fingerprint information.

《规定》此次列举了多类场景，对人脸识别技术的应用场景作出具体规定。

The new regulations provide specific provisions for various application scenarios of facial recognition technology.

如：第六条规定，旅馆客房、公共浴室、更衣室、卫生间及其他可能侵害他人隐私的场所不得安装图像采集、个人身份识别设备；

For instance, Article 6 stipulates that hotels, public bathrooms, changing rooms, toilets, and other places that may infringe upon others' privacy shall not install image capture or personal identity recognition devices.

对于宾馆、银行、车站、机场、体育场馆、展览馆、博物馆、美术馆、图书馆等经营性场所，第九条规定，除法律、行政法规规定应当使用人脸识别技术验证个人身份的，“不得以办理业务、提升服务质量等为由强制、误导、欺诈、胁迫个人接受人脸识别技术验证个人身份”。

As for business premises such as hotels, banks, railway stations, airports, stadiums, exhibition halls, museums, art galleries, and libraries, Article 9 states that unless required by laws and administrative regulations for verifying personal identity using facial recognition technology, it is banned to enforce, mislead, deceive, or coerce individuals into accepting facial recognition technology for the purpose of conducting business or improving service.

北京航空航天大学法学院副教授赵精武表示，在规定人脸识别技术的应用场景时，《规定》划定的“界线”是：采用该技术确属必要，并且是否可能对个人隐私等个人合法权益造成严重影响。

Zhao Jingwu, an associate professor at the Law School of Beihang University, said that the new regulations have established thresholds for the application of facial recognition technology. It stipulates that the use of this technology must be necessary and should not cause serious infringement on individual legal rights and interests, such as personal privacy.

Comments: With the development of technology the growing concern for the protection of personal privacy has become an important issue for the Chinese people. In 2021, China enacted a personal information protection law.

In comparison to existing legal regulations, it is noteworthy that the new rules provide specific guidelines for the application of facial recognition technology and introduce more practical measures for enforcement. Though the new regulations are still under consultation, their formal implementation is expected to trigger a wave of rectification. Looking ahead, the scope of facial recognition usage is likely become increasingly defined, and it is expected to have more efficient measures to address any violations of this technology.

---