The flow of data across borders is often hampered by varying national regulations. One such challenge is China’s restrictive data export laws, which have left many international businesses grappling with compliance. The European Union (EU) is now stepping up efforts to address this issue, seeking to pin down China on its ambiguous definition of “important data.”
The Importance of Data in Global Trade
Data is a critical asset for businesses, enabling everything from supply chain management to customer relationship strategies. For multinational companies, the ability to transfer data seamlessly across borders is essential for operational efficiency and innovation. However, differing regulatory landscapes can create significant hurdles.
China’s data export laws, particularly the Cybersecurity Law and the Data Security Law, have introduced stringent requirements for data leaving its borders. These laws mandate security assessments and government approvals for the transfer of “important data,” a term that remains vaguely defined. This ambiguity has led to uncertainty and compliance challenges for foreign businesses operating in China.
Cross-Border Data Flow Communication Mechanism
In response to these challenges, the EU has launched the “Cross-Border D
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