U.S. Initiates Measures to Shield Bulk Data from Foreign Competitors

The U.S. Department of Justice announced a new set of proposed rules on Monday aimed at preventing countries like China, Iran, and Russia from obtaining large amounts of U.S. government or personal data. These rules are designed to restrict certain business transactions that could lead to the transfer of sensitive information to these countries, which also include Venezuela, Cuba, and North Korea.

This measure is part of an executive order issued by President Joe Biden earlier in the year, intended to prevent foreign adversaries from exploiting American financial, genomic, and health data through cyber attacks, espionage, and potential blackmail. The initiative reflects Washington's continued efforts to limit the flow of American personal data to China, amidst ongoing tensions over trade and technology. A notable example is the rejection in 2018 by a U.S. panel of China's Ant Financial's attempt to acquire MoneyGram International due to data security concerns.

The newly proposed rules specify the types and amounts of data that cannot be transferred. These include human genomic data of more than 100 Americans, personal health or financial data of over 10,000 individuals, and precise geolocation data from more than 1,000 U.S. devices. Officials stated that transactions with data brokers who knowingly direct information to these "countries of concern" will be prohibited, and the transfer of data related to U.S. government personnel will also be blocked.

The Department of Justice will have the authority to enforce these rules with both criminal and civil penalties. U.S. officials noted that Chinese apps like TikTok could be impacted by these new regulations if they are found transferring sensitive data from U.S. users to Chinese parent companies.