A difficult balance: Privacy, national security and the free flow of data

Abstract

Following decades of US government-led initiatives to open data and to encourage data flows, it came as a shock to many US trade partners when the Biden administration announced in October 2023 that it would withdraw its support for proposals to encourage cross-border free flow of data being discussed at the World Trade Organization. US policy makers questioned whether supporting these proposals was still in the country's national interest. The United States followed through on its concerns by issuing executive orders to restrict the sale and transfer of various types of data to China and several other adversary nations. This paper examines how and why the United States became increasingly concerned about the national security risks of cross-border free flow of data and the impact of such restrictions on data.