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Regulation of Cross-Border Data Flows: Core Issues, International Solutions and China’s Response |
FENG Jie-han, ZHOU Meng |
Institute of International Law, Wuhan University, Wuhan, Hubei, 430072 |
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Abstract Countries differ in the stringency of the regulations on cross-border data flows due to the difference in their data industry development, privacy protection traditions and concept of national security. At present, there are two representative regulatory schemes of cross-border data flows at global level. One is the unilateral regulation scheme dominated by Europe and the United States; the other is the multi-governance regulation scheme promoted by China and ASEAN. Given their influence in digital trade and personal data protection, developed countries such as Europe and the United States currently dominate the major rules of international data flows. The United States emphasizes the freedom of data flows, while the European Union attaches more importance to privacy protection. However, most developing countries are pressured into accepting relevant provisions and give up opportunities of developing local industries and national security interests. The unilateral regulatory scheme dominated by Europe and the United States results in inequality in the regulation of data flows among countries as well as unfair competition in digital trade. With the successful conclusion of RCEP negotiations in 2020, developing countries for the first time show their leadership on issues concerning fundamental security interests in data flows, and create a multi-governance solution in data flows through cooperation with developed countries. This plan plays down privacy protection issue and gives more discretion to the contracting parties, which is expected to break the long-standing unilateral regulatory pattern dominated by Europe and the United States. However, the wavering stance of Europe and the United States on data flows presents many challenges to RCEP. China needs to flexible in its regulation of data flows and cooperation strategy in digital trade so as to steadily promote the multi-governance between developing and developed countries in data flows.
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Received: 12 March 2021
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