Data Compliance in Cross-Border E-commerce: A Comparative Study of China and Malaysia's Regulatory Frameworks

This study conducts a systematic comparative analysis of data compliance requirements in cross-border e-commerce between China and Malaysia. Using digital sovereignty theory as a conceptual framework, the research examines regulatory convergences and divergences across four critical dimensions: data localization, cross-border data transfer, privacy protection, and cybersecurity. Findings reveal that China employs a security-centered approach prioritizing data sovereignty, while Malaysia adopts a development-centered framework balancing protection with digital economy growth. These distinct regulatory philosophies create significant compliance challenges for market participants, with disproportionate impacts on small and medium-sized enterprises. Despite these differences, opportunities for regulatory harmonization exist, particularly within bilateral cooperation frameworks. The study contributes practical guidance for navigating complex regulatory landscapes while offering recommendations for enhanced regulatory compatibility including tiered compliance guidelines and bilateral mutual recognition mechanisms to facilitate cross-border digital trade.