Global Governance of Cross-border Data Flows and China's Response

In the digital trade era, cross-border data flows have comprehensively reshaped international trade in terms of trade costs, trade volumes, trade structure, and trade efficiency. Control over data has become a key factor in competition among major powers. The United States, and the European Union have all developed regulatory templates for cross-border data flows, which exhibit significant heterogeneity. China's governance of cross-border data flows started relatively late, and there are differences in governance philosophy compared to the United States and Europe. Additionally, China needs to expand its "circle of friends" in cross-border data flows, improve its domestic data cross-border flow system, and optimize its overall development environment. This paper proposes that China should participate in the global governance of cross-border data flows based on the principles of reciprocity, inclusive development, multi-dimensional governance, and respect for national security and social public interests. Finally, the paper suggests that China should objectively recognize the differences between its rules and those of the United States and Europe. At the international level, China should expand its cross-border data flow network through various binding and non-binding platforms. At the domestic level, China should explore system innovations in cross-border data flows in free trade zones and continuously optimize the digital business environment in terms of digital infrastructure, cyber security, and supporting services.