Data rules risk making China ‘digital island’, US firms warn

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 an American business group warns. — Digital lock vector created by rawpixel.com - www.freepik.com

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 an American business group warns.

The government’s curbs on data movement across borders, ambiguous regulation and inconsistent enforcement “are particularly challenging for multinational firms”, according to the US-China Business Council, which describes itself as a private organisation of over 260 American companies operating in the Asian nation.