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.
A humanoid robot that won a half-marathon race for robots in Beijing on Sunday ran faster than the human world record in a show of China’s technological leaps. The winner from Honor, a Chinese smartphone maker, completed the 21km race in 50 minutes and 26 seconds, said a WeChat post by the Beijing Economic-Technological Development Area, also known as Beijing E-Town, where the race began. That was faster than the human world record holder, Ugandan Jacob Kiplimo, who finished the same distance in about 57 minutes in March at the Lisbon road race. The performance by the robot marked a significant step forward
Four contenders are squaring up to succeed Antonio Guterres as secretary-general of the UN, which faces unprecedented global instability, wars and its own crushing budget crisis. Chile’s Michelle Bachelet, Argentina’s Rafael Grossi, Costa Rica’s Rebeca Grynspan and Senegal’s Macky Sall are each to face grillings by 193 member states and non-governmental organizations for three hours today and tomorrow. It is only the second time the UN has held a public question-and-answer, a format created in 2016 to boost transparency. Ultimately the five permanent members of the UN’s top body, the Security Council, hold the power, wielding vetoes over who leads the
South Korea’s air force yesterday apologized for a 2021 midair collision involving two fighter jets, a day after auditors said the pilots were taking selfies and filming during the flight and held them responsible for the accident. “We sincerely apologize to the public for the concern caused by the accident that occurred in 2021,” an air force spokesman told a news conference, adding that one of the pilots involved had been suspended from flying duties, received severe disciplinary action and has since left the military. The apology followed a report released on Wednesday by the South Korean Board of Audit and Inspection,
An earthquake registering a preliminary magnitude of 7.7 off northern Japan on Monday prompted a short-lived tsunami alert and the advisory of a higher risk of a possible mega-quake for coastal areas there. The Cabinet Office and the Japan Meteorological Agency said there was a 1% chance for a mega-quake, compared to a 0.1% chance during normal times, in the next week or so following the powerful quake near the Chishima and Japan trenches. Officials said the advisory was not a quake prediction but urged residents in 182 towns along the northeastern coasts to raise their preparedness while continuing their daily lives. Prime
RSS