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Abstract

As the world's second-largest economy, China's stringent cross-border data transfer laws have deterred numerous multinational investments. To address this issue, China has prioritized data openness in its legislative agenda. The passage of the Provisions on Facilitating and Standardizing Cross-Border Data Transfer (the “New Cross-Border Data Transfer Regulation”) in March 2024 marked a significant milestone in this effort. Despite this progress, investors continue to express concerns about enforcing the new law. This article analyzes these recent legal developments and argues that they signal the government's determination to relax data control measures. China's stance is shifting from prioritizing security over trade to integrating security with trade. Various factors, including economic downturns and clarification of data security, contribute to China's move toward greater data openness. By examining these elements, this article sheds light on the broader implications of China's evolving data policies and their potential impact on international business and trade.

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