The United States is reevaluating its data protection policies to limit the flow of sensitive personal data abroad and mitigate risks posed by foreign entities, particularly China. This shift in policy aims to safeguard national security, protect sensitive information, and maintain a competitive edge in emerging technologies like AI.
US Data Protection Policies: Safeguarding National Security and AI Competitiveness
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The United States is reevaluating its data protection policies to limit the flow of sensitive personal data abroad and mitigate risks posed by foreign entities, particularly China. This shift in policy aims to safeguard national security, protect sensitive information, and maintain a competitive edge in emerging technologies like AI.
President Joe Biden recently issued orders aimed at limiting the flow of sensitive personal data abroad and raising concerns about the use of data in developing artificial intelligence (AI) models. The fear is that adversaries could exploit this data to track individuals or target them for espionage or blackmail.
This shift in policy reflects a growing recognition of the strategic and national security value of data. Lindsay Gorman, a senior fellow at the German Marshall Fund of the United States, believes that the investigation by the Commerce Department into risks associated with Chinese tech in connected vehicles is long overdue. She also expects further scrutiny of data produced by the Internet of Things.
Recalibrating Dataflows: Closing Loopholes and Balancing Access
Until now, Chinese firms were able to legally purchase large amounts of data from the United States, creating an imbalance in data access. The recent order closes a loophole that allowed businesses to acquire sensitive information. Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics, describes this as a "recalibration" of the United States' approach to dataflows, which previously favored free access to data.
The United States' focus on data protection is driven, in part, by the need to stay ahead in the global tech competition, particularly in the field of AI. Emily Benson, director of the Center for Strategic and International Studies' project on trade and technology, explains that the approach includes reining in high-risk AI capabilities. This aligns with the broader push to maintain U.S. leadership in tech and economic growth, as evidenced by initiatives like the CHIPS Act, which invests heavily in manufacturing incentives.
Furthermore, the United States recognizes the importance of having a secure and robust semiconductor industry. Commerce Secretary Gina Raimondo highlights the game-changing role of AI in driving demand for advanced chips. The U.S. government aims to establish a complete supply chain for producing semiconductors, currently dominated by China and East Asia.
Global Alignment in Data Governance: Privacy, Security, and Data Access
In terms of data governance, the United States is becoming more aligned with its close partners. The European Union has stringent data protection laws, such as the General Data Protection Regulation, while Japan emphasizes the flow of data while ensuring privacy and security. It remains to be seen whether these U.S. actions will facilitate greater convergence among data governance regimes or lead to uncharted territory in digital governance.
Conclusion: Data Protection for Strategic Advantage
As the United States reevaluates its data protection policies, it is clear that the strategic and national security implications of data cannot be ignored. The country's approach to dataflows is shifting, with a greater emphasis on safeguarding sensitive information and ensuring a competitive edge in emerging technologies like AI. By aligning with its partners, the United States aims to establish a global framework that balances data access with privacy and security concerns.
