Trafficking Data: China's Digital Sovereignty And Its Control Of Your Data

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Heather Wishart-Smith advises corporates and investors on strategy, growth, leadership, and innovation. She is on the boards of Orion (NASDAQ: OESX) and Group PMX, and the limited partner advisory committee and a global expert for Blockchain Founders Fund, and previously was the Senior Vice President, Technology & Innovation for Jacobs.

In the digital age, data has become more than just a commodity; it is the infrastructure of modern society, a valuable asset, and a powerful tool that can shape the trajectory of businesses, organizations, and nations. Aynne Kokas' award-winning book,, sheds light on the complex dynamics of data, power, and security in the 21st century. As Kokas asserts, there are implications of China's digital ascendancy.

“I use the word trafficking because of the privacy violation and lawlessness for how data can be used without consent,” Kokas said. She explained how Chinese firm Beijing Kunlun Tech Co. Ltd. acquired stakes in LGBTQIA+ networking site Grindr in 2016. The Chinese firm could then access highly personal data such as voice, video, and HIV status, with that data accessible on servers to which the Chinese government had access.

China's approach differs significantly from that of the United States. Its legal framework gives it extensive oversight over all data generated by operators, both domestically and internationally. This oversight governs the creation, use, storage, transfer, and exploitation of data within China, in accordance with theThe disparities in data regulation between China and the United States create uneven trading practices when data is stored in China. U.S.

Big tech's profit maximization model can sometimes clash with the interests of users and U.S. national security. “This tension is particularly evident in the U.S.-China tech relationship, which amplifies U.S. tech illiberalism and the lack of transparency in the U.S. tech sector, whereas China’s tough regulatory environment forces international firms to comply,” Kokas said.

As China rises as a digital superpower, it is imperative that the United States take a critical look at its own digital policies and practices. “Widespread anti-China rhetoric in the U.S. makes it difficult to address valid security and data concerns in a targeted way. The U.S. must first focus on specific, legitimate data security issues and strive for a systemic domestic regulatory overhaul that ensures data is handled ethically and responsibly,” Kokas said.

 

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