context: In cross-border data regulation, balancing national security demands with boosting digital flows is a dilemma for the PRC. Tight regulations introduced in 2021, with unclear definitions of where data exports require state approval, continue to clash with Beijing's rhetoric of opening up the field. In 2024, Beijing has attempted to restore international confidence through the network data security management regulations aiming to provide greater clarity and certainty by outlining specific conditions for cross-border transfers of 'important data' related to national security and listing scenarios where the export of personal information is permissible. Pilot zones are used to test measures like general and negative data lists to explore best practices.
Following Xi Jinping 习近平 signalling it at the APEC Economic Leaders’ Meeting in Lima, Cyberspace Administration of China unveiled the global cooperation initiative on cross-border data flows on 20 November 2024.
The initiative outlines core principles and frameworks of cross-border data flows, reports Xinhua
- advocates for an open, inclusive, secure, cooperative and non-discriminatory approach
- balances digital innovation, economic development and national security with public interest, privacy and intellectual property
- provides eleven key measures for governments
- encouraging cross-border data transmission
- acknowledging national differences in governance models
- building a conducive environment for data circulation and usage
The initiative reflects the PRC’s proactive stance in global digital governance, with the focus on transparency and fairness to address monopolistic tendencies and prevent widening global inequalities, highlights Ma Liang 马亮 Peking University professor. It demonstrates the PRC’s contributions to shaping cross-border data frameworks, advocating openness, security and cooperation principles, says Wang Peng 王鹏 Beijing Academy of Social Sciences associate researcher.
Other comments on how the initiative may address provide solutions for global data trades challenges. It fosters global trade efficiency, speeds up industry digitalisation and bridges the digital divide through cross-border data governance, argues Zhou Min 周民 National Information Centre deputy director
- reduce trade costs and improve access to international digital markets by enabling smoother data flows
- enhance resource efficiency and operational processes, accelerating the digitalisation of traditional sectors
- support developing nations with capacity-building and technology, enabling equitable participation in the global digital economy
The initiative offers a practical framework to address challenges in cross-border data flow, such as complicated compliance and raised operational costs after the rise in data regulation globally, argues Zhang Xianghong 张向宏 at Beijing Jiaotong University International Centre for Informatics Research professor.
Mutual recognition mechanisms across nations to align standards, advocated by the initiative, could facilitate innovation and trade efficiency, notes Liu Dong 刘东 Next Generation Internet Engineering Center director.