China has the most restrictions on cross-border data flows, says Washington think tank
- Keeping data within borders, a growing trend among countries around the world, hurts economies, Washington think tank ITIF argues in report
- The report says that China is the most data restrictive country in the world, with 29 data localisation policies
China, with 29 data localisation policies, is the most restrictive country when it comes to cross-border data flows, according to a report by Washington-based think tank Information Technology and Innovation Foundation (ITIF).
While keeping data stored domestically is becoming a trend among governments around the world, the effort is “self-defeating” as restricting data flows would damage economies by inhibiting trade, lowering productivity and raising prices for downstream industries, the report said.
The think-tank also recommends a “Geneva Convention for Data” between US and its allies such as Canada, the UK and Japan, as a common framework for data-sharing, excluding data-restrictive countries such as China, Russia, and the European Union.
The report comes at a time when more governments are introducing rules to regulate the flow of data across their borders. The ITIF found that 62 countries have now imposed 144 data localisation measures, nearly double the number in 2017, when 35 countries enacted 67 such restrictions.
China cites sovereignty issues when imposing regulations to keep key data within its borders. US firms from Apple to Tesla are required by Chinese law to store the data of their Chinese consumers in China. Meanwhile, Washington is enhancing scrutiny over Chinese apps’ access to the data of American users.
Lu Chuanying, director of the international cyberspace governance centre at the Shanghai Institutes for International Studies, said countries around the world are imposing data borders in the name of national security as data is considered a new strategic resource.
