Confidential geodata protection in China: challenges, liability concerns and possible solutions

• Author: ZHAO Xiaobo
• Pages: 551-574

FRONTIERS OF LAW IN CHINA

VOL. 11 SEPTEMBER 2016 NO. 3

DOI 10.3868/s050-005-016-0032-6

ARTICLE

CONFIDENTIAL GEODATA PROTECTION IN CHINA: CHALLENGES, LIABILITY

CONCERNS AND POSSIBLE SOLUTIONS

ZHAO Xiaobo∗

Abstract In recent years, a growing number of foreign companies and individuals

were involved in geodata violations in China. The Chinese government is facing greater

pressure to protect confidential geodata within its territory. Geodata violations occurred

in the course of illegal mapping and surveying, geographical and geological data

collection and transactions. Although China has reformed laws and regulations to refine

some aspects of confidential geodata management, existing rules remain ambiguous and

controversial. This article aims to address the liability concerns raised among foreign

companies from geodata violations. After defining the three most significant concepts,

geological data, mapping and surveying, and state secrets, this article reviews the status

quo, reasons for and impacts of geodata violations in China, to find out how big the

problem is and why it matters. It then explores the legislative framework of state secrets

protection in the context of geodata management; special focus is put on liability issues

and problems of the current system. As a response to existing arguments, possible ways

to improve confidential geodata protection and some practical tips for foreign businesses

are offered.

Keywords confidential geodata, surveying and mapping, state secret, liability, China

INTRODUCTION .................................................................................................................... 552

I. THE GROWING THREAT OF ILLEGAL GEODATA COLLECTION IN CHINA................... 554

A. Terms and Definitions ....................................................................................554

1. Geological Data .........................................................................................554

2. Surveying and Mapping .............................................................................555

3. State Secret ................................................................................................556

B. Status Quo of Illegal Geodata Collection in China .........................................558

C. Possible Reasons for Illegal Geodata Collection............................................560

II. LEGAL LANDSCAPE OF CONFIDENTIAL GEODATA PROTECTION IN CHINA............. 561

A. Laws and Regulations for Geodata Protection ...............................................561

∗ (󲩊󰦷) Ph.D in law; Lecturer, School of Law and Justice, University of Southern Queensland, QLD

4350, Australia; Senior Research Fellow, Research Institute of Environmental Law (RIEL), Wuhan University,

Wuhan 430072, China. Contact: bob.zhao@usq.edu.au

The author would like to thank Professor Carolyn Sappideen for helpful comments on the earlier draft.

The author alone is, of course, fully responsible for all mistakes and misjudgments.

552 FRONTIERS OF LAW IN CHINA [Vol. 11: 551

1. Rules for Surveying and Mapping ..............................................................561

2. Rules for Geological Data Management......................................................562

B. Rules for State Secret Protection ....................................................................562

III. LIABILITY SCHEME FOR CONFIDENTIAL GEODATA MANAGEMENT ...................... 563

A. Scope of Liabilities........................................................................................563

B. Criminal Liabilities .......................................................................................564

1. Liabilities for State Secrets Violations ........................................................ 564

2. Criminal Liabilities under the Criminal Law...............................................564

3. Criminal Liabilities under the State Secrets Law 2010 and Its Application

Measures ...................................................................................................565

4. Criminal Liabilities under the Supreme People’s Court (SPC)’s

Interpretation.............................................................................................565

C. Administrative Liabilities...............................................................................566

1. Administrative Liabilities for State Secrets Offences................................... 566

2. Administrative Liabilities for Unlawful Geological Data Collection............567

3. Administrative Liabilities for Illegal Surveying and Mapping ..................... 568

D. Problems of the Current Liability System .......................................................569

IV. REFORM EXISTING RULES TO ADDRESS CHALLENGES ......................................... 570

A. Draw Clearer Boundaries for Foreign Geodata Businesses............................570

B. Change the Monitoring Methods for Foreign Investors .................................. 571

C. Reform the Institutional Structure for Confidential Geodata Protection.......... 572

D. Raise Public Awareness by Legal Education ..................................................573

CONCLUSION........................................................................................................................ 573

INTRODUCTION

In March 2013, beverage industry giant Coca-Cola Co. was accused of collecting

confidential information from southwestern China by using handheld Global Positioning

System (GPS) devices.1 This is the latest of many examples involving confidential

geodata collection in China.2 It has raised concerns that foreign companies, even giant,

multinational corporations, might be targeted by Chinese administrative authorities due to

state secrets protection concerns.

Strictly speaking, the term “geodata” is not an accurate scientific concept. Synonyms

of the term may include “spatial data,” “geographic data,” “geographic data sets,” or

1 L. Burkitt, China Accuses Coca-Cola of Illegally Using GPS, (2013), available at http://online.

wsj.com/news/articles/SB10001424127887323826704578357131413767460 (last visited Jul. 6, 2016).

2 SHAO Wei, US Citizen Arrested for Illegal Mapping, (2012), available at http://www.chinadaily.

com.cn/china/2012-03/07/content_14773071.htm (last visited Jul. 6, 2016); Xinhua Net, 󰊅󱉛󰨠󱮭󳐇3

󱿆󳐳󰦪󰨠󱮭󱮛󱽗 (Details for Illegal Mapping and Surveying Conducted by Three British Citizens

Disclosed), (2009), available at http://news.xinhuanet.com/politics/2009-01/ 07/content_10615131.htm (last

visited Jul. 6, 2016).