National security as the trump card: assessing China's legal regime on cross-border data transfer

Abstract

ABSTRACT A strong regulatory framework for cross-border data transfer is crucial to balance the relationships between national security, economic interests, and individual privacy. However, China's approach, utilizing security assessment and standard contract clauses, prioritizes national security above all else. The recent Regulation on Standardizing and Promoting Data Cross-border Transfer strengthens this approach, suggesting a continued focus on national security for the foreseeable future. This emphasis on national security is not accidental, but rather a core principle of China's long-held ‘national security comes first’ doctrine and its unique political philosophy, which places public interests above private ones. Accordingly, China has implemented a type of soft data localization, significantly affecting foreign companies operating in its borders and affecting the landscape of consumer privacy protection.