China’s “uniquely restrictive” data laws risk boosting US firms’ cost of doing business in the No. 2 economy and could lead to digital decoupling, a new report from a US business group said yesterday.
The Chinese government’s curbs on data movement across borders, ambiguous regulation and inconsistent enforcement “are particularly challenging for multinational firms,” said the US-China Business Council, which describes itself as a private organization of more than 260 US companies operating in the Asian nation.
“If the policies are implemented rigidly, a possible outcome is the creation of data islands that force companies to localize technology, people and processes, disconnecting them from global operations,” the business group said in a report that was based on discussions with more than 30 US companies.
Chinese President Xi Jinping’s (習近平) government has introduced a raft of data, privacy and cybersecurity regulations over the past five years, citing the need to better protect personal information and improve national security. The government also wants to build digital infrastructure and data centers across China with the goal of creating a market for data that propel economic growth.
The strategy is also politically driven, with Xi last year saying he intended to pursue “platform” companies that amass data to create monopolies.
The government later hit Alibaba Group Holding with a record US$2.8 billion fine for abuse of market dominance and told other top Internet companies to rectify anti-competitive practices.
The moves have also rattled investors.
Analysts at JPMorgan Chase & Co last month called the Chinese Internet sector “uninvestable,” partly due to regulatory worries.
“Like most governments, Beijing is still figuring out how to thread the needle between protecting data security and enabling cross-border data trade,” said Kendra Schaefer, head of digital research at Trivium China, a consultancy in Beijing.
“It’s uncertain how rigidly existing rules will be enforced, and to what extent they will be adjusted over the long term in response to complaints by foreign businesses,” Schaefer said.
Philippine President Ferdinand Marcos Jr has fired his national police chief, who gained attention for leading the separate arrests of former Philippine president Rodrigo Duterte on orders of the International Criminal Court and televangelist Apollo Carreon Quiboloy, who is on the FBI’s most-wanted list for alleged child sex trafficking. Philippine Executive Secretary Lucas Bersamin did not cite a reason for the removal of General Nicolas Torre as head of the 232,000-member national police force, a position he was appointed to by Marcos in May and which he would have held until 2027. He was replaced by another senior police general, Jose
STILL AFLOAT: Satellite images show that a Chinese ship damaged in a collision earlier this month was under repair on Hainan, but Beijing has not commented on the incident Australia, Canada and the Philippines on Wednesday deployed three warships and aircraft for drills against simulated aerial threats off a disputed South China Sea shoal where Chinese forces have used risky maneuvers to try to drive away Manila’s aircraft and ships. The Philippine military said the naval drills east of Scarborough Shoal (Huangyan Island, 黃岩島) were concluded safely, and it did not mention any encounter with China’s coast guard, navy or suspected militia ships, which have been closely guarding the uninhabited fishing atoll off northwestern Philippines for years. Chinese officials did not immediately issue any comment on the naval drills, but they
POWER CONFLICT: The US president threatened to deploy National Guards in Baltimore. US media reports said he is also planning to station troops in Chicago US President Donald Trump on Sunday threatened to deploy National Guard troops to yet another Democratic stronghold, the Maryland city of Baltimore, as he seeks to expand his crackdown on crime and immigration. The Republican’s latest online rant about an “out of control, crime-ridden” city comes as Democratic state leaders — including Maryland Governor Wes Moore — line up to berate Trump on a high-profile political stage. Trump this month deployed the National Guard to the streets of Washington, in a widely criticized show of force the president said amounts to a federal takeover of US capital policing. The Guard began carrying
Ukrainian drone attacks overnight on several Russian power and energy facilities forced capacity reduction at the Kursk Nuclear Power Plant and set a fuel export terminal in Ust-Luga on fire, Russian officials said yesterday. A drone attack on the Kursk nuclear plant, not far from the border with Ukraine, damaged an auxiliary transformer and led to 50 percent reduction in the operating capacity at unit three of the plant, the plant’s press service said. There were no injuries and a fire sparked by the attack was promptly extinguished, the plant said. Radiation levels at the site and in the surrounding
RSS