The two sessions emphasize the electronization of ID cards, and relevant policies are expected to accelerate the industrial trend. The electronic ID card is based on the ID card making data according to the resident ID card law, and the only electronic document corresponding to the physical ID card chip is issued through the national “Internet + trusted identity authentication platform”. It is also a national legal certificate and identity certificate recognized by the Ministry of public security. On March 11, Premier Li Keqiang said during the two sessions that the ID card is connected with the basic people’s livelihood and daily life interest. There are more than 100 million people flowing across provinces across the country. There are urgent needs for employment, pension and schooling in other places, and the inter provincial office has become a new demand. A new policy will be implemented in 2022 to electronize people’s commonly used ID cards. At the same time, it is considered that the use of smart machines is inconvenient for users, especially for the elderly, so as to ensure citizens’ information security and privacy. On February 22, 2022, the general office of the State Council has issued the opinions on accelerating the expansion of application fields and national mutual recognition of electronic licenses, which clearly focuses on the service matters often handled by enterprises and the masses, and fully relies on the national integrated government service platform to promote the application of electronic licenses in more fields and realize national mutual recognition.
Three advantages of electronic ID card: 1) protect personal information from disclosure. Under the condition of entity ID card, when the ID card is displayed, all sensitive information such as name and ID number is exposed to physical conditions. There are also “photocopy” and “identity card photo verification”, which are easy to cause privacy leakage. Under the condition of electronic ID card, only one encrypted string can be obtained when checking the identity, and the information irrelevant to personal authentication cannot be read. On the other hand, the electronic ID card can record which units, companies or departments have accessed the personal information of residents, so it can also curb excessive inquiry; 2) Effectively solve the problems of lost and stolen ID cards. Once the mobile phone mobile is lost, it will be necessary to log on to Alipay on any other mobile phone. The network card on the original mobile phone Alipay will be deleted automatically. Users can also go to the trusted ID card acceptance point to “brush the card” again, and apply for a new network card with the second-generation ID card chip, and the old network card will be automatically invalidated. 3) Identity verification is more efficient. Identity check can be completed by mobile phone, which is more efficient. In the future, physical and electronic identity cards will coexist. After all, there are still a large number of elderly groups in China, and parallelism is a situation that may be maintained for a long time in the future.
The interoperability of electronic ID cards across the country is expected to improve. Previously, the Ministry of public security has developed two types of electronic ID cards. One is Eid, which was launched by the Third Research Institute of the Ministry of public security; The other is Ctid, launched by the first Research Institute of the Ministry of public security. The private key of Eid is generated by the smart chip to ensure that it cannot be read, copied, tampered or illegally used, so as to ensure the one-to-one correspondence between the chip carrier and its holder. Due to its dependence on the smart chip, Eid can be realized only with the support of the carrier. Different from Eid, the Ctid developed by the first Institute of public security prefers Internet technology to verify personal identity, and combines face recognition and in vivo detection technology to realize remote identity authentication. At the end of CTID2017, the pilot project was applied in some parts of Hangzhou, Quzhou and Fuzhou. It has developed rapidly, and has already won the cooperation between WeChat and Alipay’s two major Internet applications. However, most of the limitations are that the functions of electronic ID cards in various provinces are used in scenarios such as hotel residence, daily government affairs and transportation. The level of interconnection between different provinces is not high, and the use scenarios are not standardized, which is expected to be improved in the future.
The information capacity contained in the electronic ID card is expected to be improved and the application scenarios may be richer. On February 22, the “opinions” printed and distributed deployed the work of expanding the application field of electronic licenses. It is necessary to accelerate the application of electronic certificates of birth certificates, registered residence booklet, ID card, social security card, academic degree certificate, occupation qualification certificate, driving license and new application, certificate of real estate, and real estate registration certificate. It covers the marriage registration, birth registration, housing accumulation fund transfer and succession, employment and entrepreneurship, household registration transfer, etc. Social security card application, pension insurance relationship transfer and connection, remote medical reimbursement, real estate registration and other application scenarios, and constantly enrich other application scenarios according to needs to promote the universal use of relevant electronic certificates. If the government can query and verify the related information through electronic license sharing, it will no longer require individuals to provide physical licenses or paper copies, and the relevant information required for promoting the work will not be filled in.
In addition to the direct benefits of relevant electronic ID and privacy encryption manufacturers, electronic ID cards may reverse the continuous improvement of government informatization. To promote and solve the difficulties of expanding the application field of electronic licenses and national mutual recognition, it is necessary to improve the collaborative promotion mechanism of electronic license application and strengthen the collaborative development system of cross regional and cross departmental work of electronic license application. In addition to intuitively, listed companies such as Beijing Certificate Authority Co.Ltd(300579) as a leading provider of information security solutions in China, cooperated with the first Research Institute of the Ministry of public security to conduct research on electronic ID cards Linewell Software Co.Ltd(603636) as a participant in the formulation of national electronic license standards, electronic license systems have been built in 22 provinces across the country Westone Information Industry Inc(002268) as a complete manufacturer that has built chips, modules and platform systems in the field of identity authentication and encryption, it is expected to fully benefit. In addition, smart government manufacturers such as Beijing Egova Co.Ltd(300075) are expected to force cities to improve their electronic management and service capabilities under the background of the continuous improvement of the electronic level of licenses.
Related companies: Westone Information Industry Inc(002268) , Linewell Software Co.Ltd(603636) , Beijing Certificate Authority Co.Ltd(300579) , Jilin University Zhengyuan Information Technologies Co.Ltd(003029) , Aisino Corporation(600271) , Newland Digital Technology Co.Ltd(000997) , Beijing Egova Co.Ltd(300075) , etc.
Risk warning: industry competition intensifies the risk; The policy strength is less than the expected risk; Macroeconomic risks.
