Data is a new type of production factor in the era of digital economy. As an important link of the digital economy, the cross-border flow of data has evolved into a foundation for the exchange and sharing of global capital, information, technology, talent, and goods.
Recently, China has made new progress in international cooperation on the cross-border flow of data. It signed with Germany a memorandum of understanding on cross-border data flow and had exchanges with Singapore on relevant cooperation at the inaugural meeting of a bilateral digital policy dialogue mechanism.
Such collaboration marked a positive signal of China promoting international cooperation on the cross-border flow of data. In recent years, the country has been advocating safe and orderly cross-border flow of data, working with all relevant parties to build an open and win-win international cooperation in the data field.
Zhang Pengyang, a professor with the College of Economics and Management, Beijing University of Technology, said that China has enacted a series of laws to cement the legal foundation for the cross-border flow of data, including those on cybersecurity, data security, and the protection of personal information.
Besides, the country has been constantly optimizing its business environment and standardizing the management of cross-border data flow, so as to better facilitate foreign enterprises, Zhang said, adding that this demonstrated China’s resolution and confidence in opening up.
China also participates in the making of relevant international rules, Zhang noted. It has signed the Regional Comprehensive Economic Partnership agreement and is working to align itself with the high-standard economic and trade rules of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement.
Furthermore, China and some other countries and regions have signed bilateral and multilateral agreements on cross-border data flow.
At the border between China and Laos, specialized data that ensure cross-border railway transport are transmitted via information networks, enabling end users to operate in their respective systems and thus guaranteeing the smooth operation of the China-Laos Railway.
Patient treatment data from a clinical data research platform at Beijing Friendship Hospital affiliated with Capital Medical University, are securely processed and transmitted halfway across the globe to the Academic Medical Center, University of Amsterdam, in a bid to support joint research efforts between Chinese and Dutch medical experts.
Today, foreign purchasers can browse and obtain relevant information about Chinese suppliers with only a few clicks on their mouse on Chinese e-commerce platforms.
Such a cross-border flow of data will become even more active as China deepens its cooperation and exchanges with other countries in various fields.
At present, the cross-border flow of data has become a new driver for global growth. It is expected to contribute $11 trillion to global GDP by 2025, according to a McKinsey & Company report.
“The cross-border flow of data is crucial for supporting international trade activities, global scientific and technological cooperation, and the sharing of data resources worldwide. It calls for international cooperation and sharing to promote the safe and orderly cross-border flow of data,” Zhang said.
Zhang believes that China’s proposals and actions to promote such international cooperation would help global trade transit from commodity trade to digital trade and open up more opportunities for international cooperation on science and technology, culture, education, and more fields.
Besides, these proposals and actions would improve China’s institutional opening up, further optimize the country’s business environment, expand the value of data, fully release the potential of data factor, stimulate enterprises’ passion for innovation, and finally promote regional and even global economic growth, Zhang added.
However, as data are extremely replicable and non-exclusive, the cross-border flow of data comes with a series of security problems, bringing challenges to data sovereignty, privacy protection, and even national security.
According to statistics, as of May 2023, more than 70 countries and regions had formulated regulations on the cross-border flow of data, and more than 180 regional trade agreements newly added specific articles or terms related to digital trade, including the cross-border flow of data.
In September 2020, China proposed the Global Initiative on Data Security, calling on countries to foster an open, fair and non-discriminatory business environment for mutual benefit, win-win outcomes and common development.
Zhang said the Global Initiative on Data Security stresses that countries should respect the sovereignty, jurisdiction and governance of data of other countries, and jointly safeguard the security and order of the global data flow. They should not only focus on their own data security, but also respect other countries’ rules on cross-border data flow.
This initiative demonstrates China’s sense of responsibility in global digital governance, and will inject new vitality into building a fair, inclusive and efficient global digital governance system, Zhang added.
