Cross-border Data Flows Research Articles

Cross-border data flow in China: Shifting from restriction to relaxation?

This article examines China's latest development in the governance of cross-border data flow. Under the general framework of Cyber Security Law, Data Security Law, and Personal Data Protection Law, China established its own regime of cross-border data flow. In recent years, contrary to the general international perception that China imposes strict restrictions especially due to national security concerns, China has been de facto relaxing its regulations on cross-border data flow, especially for digital trade. This article suggests three underlying incentives. First, China is in an increasing need to gain economic growth through international trade and investment. Second, China intends to compete in technology development and take the lead in shaping international rules on data governance. Third, China is seeking to adhere to international standards, particularly those prescribed in international free trade agreements. This article further submits that this paradigm shift would have international implications. First, China's practices need to be examined under the domestic regulatory frameworks of international free trade agreements. Second, China's current legislative and judicial practices are multifaceted, taking into account various factors, including international business, national security, and data protection, which may contribute to the further development of international cross-border data flow rules.

INTERNATIONAL COMMUNITY IN THE GLOBAL DIGITAL ECONOMY: A CASE STUDY ON THE AFRICAN DIGITAL TRADE FRAMEWORK

Abstract Global digital integration is desirable and perhaps even inevitable for most States. However, there is currently no systematic framework or narrative to drive such integration in trade agreements. This article evaluates whether community values can offer a normative foundation for rules governing digital trade. It uses the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol as a case study and argues that identifying and solidifying the collective needs of the African region through this instrument will be key to shaping an inclusive and holistic regional framework. These arguments are substantiated by analysis of the regulation of cross-border data flows, privacy and cybersecurity.

Global Data Governance at a Turning Point? Rethinking China-U.S. Cross-Border Data Flow Regulatory Models

China and the United States have traditionally represented the ‘security paradigm’ and ‘freedom paradigm’ in their regulatory approaches to cross-border data flow. However, with the introduction of new rules governing these flows in both countries, this article challenges that perspective and explores the potential implications of this shift for global data governance. Specifically, it analyzes how the recent regulations in China and the United States serve as critical turning points affecting the transition between these paradigms, focusing on the overall regulatory frameworks and institutional developments in both nations. The article provides legal, institutional, and case-based examples to illustrate these changes. Furthermore, it offers a comparative analysis of the existing models for cross-border data flow regulation between China and the United States. Targeted compliance advice is provided for multinational corporations and other businesses frequently engaging in international operations that may be impacted by these regulatory changes. This research aims to deliver comprehensive insights into the latest regulatory developments in both countries and their existing models for cross-border data governance, thereby assisting enterprises in developing effective compliance strategies in practice.

Article: Artificial Intelligence and International Trade from a Latin American Perspective

The article explores the impact of Artificial intelligence (AI) on international trade, focusing on challenges and opportunities for developing countries, particularly in Latin America and the Caribbean (LAC). As AI advances, it creates regulatory challenges and ethical concerns, especially regarding human rights and public morals, which may lead to trade frictions not addressed by current international agreements. AI brings important benefits to countries, such as cost reductions and efficiencies, alongside challenges related to data privacy, competition, and security. For developing countries, adopting AI offers both opportunities and obstacles, with infrastructure and human capital constraints being significant hurdles. The article suggests flexible regulatory approaches to attract investment, promote digital services exports, and ease cross-border data flow. While global trade discussions, particularly within the WTO, are addressing AI-related issues, regional agreements have made more progress. These agreements lack however comprehensive coverage and effective dispute resolution. It is important for LAC countries participating in international negotiations to ensure their interests are represented and to help shape global digital governance standards, enabling them to fully benefit from AI.

RCEP rules on cross-border data flows: Asian characteristics and implications for developing countries

ABSTRACT Data, as an essential production factor and a fundamental strategic resource in the digital economy era, have profoundly transformed production methods, lifestyles, and social governance, becoming one of the critical factors influencing the global competitive landscape. The United States and the European Union are actively making comprehensive arrangements around data flow issues, integrating their interests and values into data governance rules to influence other countries. Against the backdrop of increasingly intense global rule-making competition in digital trade, the Regional Comprehensive Economic Partnership (RCEP), led by the Association of Southeast Asian Nations (ASEAN) and actively promoted by China, covering 15 countries in the Asia-Pacific region, is sending a strong and powerful Asian voice regarding cross-border data flow rules. This article attempts to highlight the Asian characteristics of the data cross-border flow rules within RCEP through a horizontal comparison of regional trade agreements. These characteristics primarily include the principle of free cross-border data flow; fully protecting the host country’s national security through exceptional clauses; relatively lenient regulation of personal information protection; and adhering to the principle of non-reciprocity to respect and embrace countries at different development levels. Consequently, it is concluded that RCEP has constructed an Asian paradigm for cross-border flow of data that matches the development status of the Asia-Pacific countries and is worthy of emulation by other developing nations.

How data factor flow affects corporate pollution reduction: The environmental effects of digital empowerment

This study the theoretical hypotheses by building a relatively exogenous data factor flow indicator and a corporate pollution emission intensity indicator system using China's data flow restriction policy and corporate pollution emission data. Data factor is emerging as an essential new factor of production in today's digital economy, and data cannot function valuablely without an efficient flow. This study constructs a theoretical model of the influence of data factor flow on the pollution emissions of downstream manufacturing enterprises based on the vertical correlation of inputs and outputs. Additionally, we employ additional contaminants as a robustness test and sulfur dioxide, a common representation of air pollution, as the baseline. The empirical analysis's findings indicate that: (1) Data factor flow significantly reduces pollution in manufacturing enterprises. (2) The main way that data factor flow helps organizations minimize pollution is by increasing their productivity and ability to innovate in technology. (3) Domestic data flow is more important than cross-border data flow in helping industrial companies reduce pollution. (4) In general, foreign-owned enterprises have a greater need for data factor flow to reduce pollution than do state-owned and private businesses.

The Interplay Between Global Digital Trade and Data Privacy Policy: A Comprehensive Review

In the era of big data, international trade has gone through a digital transformation and developed into a new stage of digital trade. The gradual prosperity of digital trade and the increasing contribution of digital elements to the economy of countries and the international community also bring about problems such as data abuse, surveillance, privacy infringement, and regulatory difficulties. In order to adapt to the development trend of digital trade, countries are paying more attention to cross-border data flow and data privacy protection, in order to maintain national security and the data security of various entities. Therefore, this article analyzes the current situation and trends of digital trade, considers the security issues of data privacy from the perspective of different entities, links key issues such as cross-border data flow, data rights, and privacy rights, explores the current status of relevant domestic and foreign legal and regulatory systems, and conducts comparative analysis. The analysis results show that due to different values, there are significant differences in policies regarding digital trade and privacy protection among countries. The commonality is that none of them have established appropriate legal protection systems for data elements and privacy rights to promote the development of digital trade. Under the trend of technological development, data privacy will also be impacted by new technologies through digital trade. Therefore, in response to the expanding demand for data regulation, all entities should improve their privacy protection and cross-border data flow policies and standards from both internal and international perspectives.

The Impact of the Digital Economy on International Trade Models: Opportunities and Challenges

With the rapid development of the digital economy, international trade models are undergoing profound changes. Digital technology has reshaped traditional trade structures, driving the reorganization of global value chains and the rise of intangible assets. This paper explores the new characteristics of international trade in the context of the digital economy, including the transformation of trade structures driven by digitalization, the increasing importance of intangible assets in trade, and the influence of digital ecosystems. The digital economy has made trade processes more convenient and efficient, offering new globalization opportunities for emerging markets and small and medium-sized enterprises (SMEs), and promoting the growth of cross-border services and digital products. However, challenges remain, such as disparities in digital infrastructure, conflicts between digital governance and cross-border data flows, and the diversity of digital trade rules. This paper summarizes these opportunities and challenges and suggests future research directions to help policymakers, businesses, and technology providers navigate the complex landscape brought about by the digital economy.

Limiting heterogeneity in cross-border data flow: Impact on domestic value chains stability and the role of innovation.

Amidst growing skepticism towards globalization and rising digital trade, this study investigates the impact of Restrictions on Cross-Border Data Flows (RCDF) on Domestic Value Chains (DVCs) stability. As global value chains participation declines, the stability of DVCs-integral to internal economic dynamics-becomes crucial. This study situates within a framework exploring the role of innovation and RCDF in the increasingly interconnected global trade. Using a panel data fixed effect model, our analysis provides insights into the varying effects of RCDF on DVCs stability across countries with diverse economic structures and technological advancement levels. This approach allows for a nuanced understanding of the interplay between digital trade policies, value chain stability, and innovation. RCDF tend to disrupt DVCs by negatively impacting innovation, which necessitates proactive policy measures to mitigate these effects. In contrast, low-income countries experience a less detrimental impact; RCDF may even aid in integrating their DVCs into Global Value Chains, enhancing economic stability. It underscores the need for dynamic, adaptable policies and global collaboration to harmonize digital trade standards, thus offering guidance for policy-making in the context of an interconnected global economy.

The Legal and Regulatory Issues of AI Technology in Cross-Border Data Flow in International Trade

The Legal and Regulatory Issues of AI Technology in Cross-Border Data Flow in International Trade

Cross-border Data Flow Governance: The Integration of International Experience and China's Modernization Path

Cross-border Data Flow Governance: The Integration of International Experience and China's Modernization Path

Differential Game Analysis of Cross-Border Data Flow Regulation Under Technological Progress

Differential Game Analysis of Cross-Border Data Flow Regulation Under Technological Progress

Challenges in Achieving Consensus on Data Localization: Digital Inequality of Digital Service Trade

The disagreements on data localization policies significantly hamper the progression of digital service trade and free cross-border data flow. This study adopts the Theory of Comparative Advantage and the Heckscher-Ohlin Theory (H-O Theory) to construct an analytical model that investigates the inequality of digital service trade on the well-being of nations and the valuation of digital factors. Our findings suggest that digital service trade exacerbates the terms of trade for developing countries. In an environment of unrestricted data flow, developed countries capitalize on the data resources from developing nations, thereby augmenting their digital comparative advantages and factor endowments. The dynamics foster a state of digital inequality or digital poverty, where late-developing countries are disadvantaged in keeping pace with their developed counterparts. Notably, data localization, while seemingly a protective measure for developing countries, may not be the optimal strategy. It potentially undermines the overall well-being of all participants by diminishing network effects. The paper argues that the path towards the liberalization of digital trade and data flows will be a lengthy and complex one, demanding concerted international efforts to overcome entrenched trade barriers.

Issues in China's Alignment with DEPA Data Cross-Border Regulation

In the global digital governance game, the Digital Economy Partnership Agreement (DEPA) features innovative designs for digital trade, aligning with China's goals of internal data sharing openness and external breaking of "rule locks". However, China currently exhibits significant legislative differences in the "Data Issues" section of DEPA's fourth module, adopting stricter regulatory measures for cross-border data flow and data localization. Addressing DEPA's "principle & exception" regulatory standards, this paper argues that legitimate public policy objectives can be aligned with DEPA through proportionality principles, WTO general exception clauses, etc. By innovating customs supervision methods and following the path of the Hainan Free Trade Port trial, connecting international trade new rules, orderly implementing law enforcement systems and supporting mechanisms to ensure data security and orderly flow, China can gradually align with DEPA.

Цифровая гегемония США: особенности, цели и последствия

The article analyses the characteristics, goals and consequences of the US digital hegemony. The article argues that this hegemony has allowed the United States to maintain global leadership in innovation and to use its dominant position in cyberspace to unilaterally influence other countries. As a result of US digital hegemony, the rules of global data governance have become fragmented and issues such as cybersecurity, cross-border data flows and digital sovereignty have attracted widespread international attention. The "game" between the US and China around digital governance issues has escalated and is reflected in geopolitical and economic dimensions, influencing the shaping of global digital governance. The article argues that it is necessary to promote a more democratic and inclusive global digital order, mitigate the effects of unilateral rulemaking by the US and other countries, and promote the balanced development of the global digital economy.

Research on the Balance Mechanism of Rights Conflict in the Cross-border Flow of Personal Financial Data

The cross-border flow of personal financial data is inevitable due to the needs of cross-border business or overseas supervision such as anti-money laundering. The conflict between national financial security and financial efficiency results in a series of unbalanced situations under cross-border financial data. The state takes measures to regulate in order to balance different demands, promote economic development, and seek economic globalization. In an unbalanced state, the lack of systematic rights protection will lead to a lack of confidence in the degree of protection of personal financial data subjects, which may hinder the construction of global economic integration. This paper first analyzes the causes of imbalance from the perspective of value orientation and makes suggestions for institutional improvement. Secondly, from the perspective of the contradictions between the subjects of personal financial data rights and processors, as well as the contradictions between regulators, it studies the feasibility methods to check and balance and resolve the conflicts, so as to achieve the goal of clarifying the basic value and coordinating the conflict relationship. It should also focus on the development of national independent artificial intelligence, science and technology to help development cooperation, and the goal of international economic integration.

Control of Personal Data and Cyber ​​Space by Global Digital Platforms in Relation to Indonesia's Digital Sovereignty

The dominance of foreign digital platforms in the application ecosystem within Indonesia poses significant implications for the sovereignty of the Indonesian state; the utilization of such foreign digital technologies results in the inadvertent surrender and delegation of citizen data to foreign entities for monitoring and processing purposes. This phenomenon has elicited concern among legal scholars, as the usage of foreign applications signifies the applicability of the legal frameworks from the countries of origin of these applications. This raises critical questions regarding the sovereignty of the Indonesian state, particularly concerning its ability to exert control over data and cyberspace in the context of global platforms. The methodological approach employed in this investigation is grounded in normative legal research, utilizing a conceptual framework that examines relevant legal statutes. The aggregation and distribution of personal data constitutes an infringement upon individual privacy rights, as the right to privacy inherently encompasses the prerogative to determine the provision of personal information. The strategic policies and initiatives undertaken by the Indonesian government to bolster national digital sovereignty can be realized through several measures: the implementation of comprehensive personal data protection standards to enhance national digital sovereignty, the establishment of an independent authority for personal data protection, the fortification of cybersecurity measures to mitigate data security risks, and the jurisdictional enforcement of cyberspace law towards achieving digital economic sovereignty. There exists a pressing need for extensive regulatory frameworks to safeguard personal data as an integral component of human rights. A balance must be struck in the management of personal data processing, ensuring the protection of rights and fostering awareness among data subjects, thereby facilitating the development of a secure digital economic ecosystem that offers legal certainty for enterprises and enhances consumer confidence. Furthermore, the establishment of equitable international personal data protection regulations is essential to support the advancement of the digital economy through arrangements governing cross-border data flow.

Developing China's Approaches to Regulate Cross-border Data Transfer:Relaxation and Integration

This article illustrates the developing Chinese cross-border data flow regulation regime deriving from a holistic national security conception to its balance with personal information protection and digital economic development. Under the pressuring demand of digital economy development and an increasing appeal to global data governance, China is progressively improving and modifying its original government-led and restrictive cross-border data regulations. Subsequent practices and the publication of the Provisions on Promoting and Regulating Cross-border Data Transfer (PPR) in March 2024 deliver a clear sign of relaxation on restrictions on cross-border data flow, especially on the subject of personal information outbound transfer. Detailed comparison with data provisions in the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Digital Economy Partnership Agreement (DEPA) demonstrates that global governance of cross-border data flows is unshaped but not unrealistic, even with current fragmented national approaches. China has established a complete personal information protection legal regime and is very close to integrating into transnational cooperation for a broader framework. In addition, by coordinating national provisions regarding cross-data transfer with international rules and piloting lenient cross-border data supervision mechanisms in numerous Pilot Free Trade Zone (PFTZ), China is ready to evolve its cross-border data flow regulations and contribute to global data governance step-by-step.

China’s Law and Policy on Cross-border Data Flow: A Review of Digital Silk Road

China’s Law and Policy on Cross-border Data Flow: A Review of Digital Silk Road

Legal Regulation of Transnational Data Flows: International Experience and Chinese Solutions

The arrival of the big data era has made most countries realize the importance of data resources for economic development. On the one hand, data flow promotes trade between countries, and on the other hand, the rapid expansion of the scale of multinational business giants has led to a proliferation of incidents of illegal collection and utilization of user privacy, putting national security at risk.In 2019, WTO members of the e-commerce negotiations put forward proposals for cross-border data flow based on their own positions, and major countries such as China, the United States, Russia and other major countries have all put forward different proposals.It can be seen that data flow regulation has become a key topic in the international arena nowadays, with sufficient necessity and practical significance. As a result, this paper adopts the comparative analysis method, normative analysis method and other research methods to analyze the issue and make suggestions on the direction of China's legislation.