The evolution of sensitive data governance in international investment law: a dual-jurisdictional study

ABSTRACT The digital economy’s transformation has fundamentally altered international investment dynamics, shifting from traditional ‘brick and mortar’ assets to data-centric business models. This paper examines the evolving landscape of sensitive data governance in international investment, focusing on two major jurisdictions: China and the United States (US). Through comparative legal analysis, it investigates how these regions define, regulate, and protect sensitive data while balancing national security concerns with international investment obligations. The research reveals two distinctive regulatory models. While these approaches differ in implementation, common grounds emerge around sectoral critical infrastructure protection, security review mechanisms, and the objective of achieving a balance between investment and national security interests. The paper identifies potential challenges to international investment law principles and suggests pathways for global regulatory convergence in sensitive data governance under a multilayered and interoperable framework.