Analysis On The Legal Regulation Of Data Localization Measures In The Context Of Digital Trade

With the rise of the digital wave driven by the digital economy,digital trade has become the new engine of global economic development,leading the new development of international trade.At the same time,the cross-border flow of data is becoming more and more frequent,and the uncertainty and threats in the process of data flow are increasingly prominent,with problems such as personal privacy leakage and threats to national security.In this context,the regulatory policies of cross-border data flow in various countries have tightened,and data localization measures have gradually emerged.The United States,the European Union,China and major regional trade agreements have their own practices regarding data localization measures.The U.S.actively opposes data localization measures externally and adopts data localization measures for domestic key industry data.The EU,based on its level of digital trade development,has implemented a loose internal and external data localization policy,strictly reviewing data transferred across borders to third parties outside the EU.China takes into account the situation,actively participates in international exchange dialogues to promote cross-border data flow,and continuously formulates and improves relevant laws and regulations,clearly puts forward the requirement of data storage localization,and promotes data flow on the basis of taking into account data flow and ensuring data security.Major regional trade agreements,on the other hand,restrict or prohibit data localization measures.It can be seen that the current international attitudes towards data localization measures are still widely divergent.As a new type of domestic or regional regulatory measure in the context of digital trade,data localization measures are reasonable and justified,but the potential negative impact of data localization measures on digital trade liberalization is also an objective reality.Therefore,it is necessary for us to consider how to improve the data localization system as a domestic or regional regulatory measure to achieve a balance between trade liberalization and domestic or regional regulation in the context of the rapid development of digital trade and trade liberalization.To a certain extent,this determines the future development pattern of digital trade and is also related to the protection of rights and interests of countries or regions in the process of participating in digital trade.Therefore,this paper attempts to analyze and reflect on data localization measures from both theoretical and practical dimensions,aiming to analyze the rationality and shortcomings of data localization measures in the light of the practice of data localization measures at home and abroad,so as to discover the logic of data localization measures,and on this basis,make reasonable suggestions on how to build a data localization system,with a view to finding the interests between digital trade development and data security protection.This paper is divided into four chapters,which are organized as follows.The first chapter is on data localization measures in the context of digital trade.Digital trade is a major innovation to traditional trade,and it has accelerated the crossborder flow of data while reshaping the world economic development pattern.However,in the process of cross-border data flow,problems such as exposure of personal privacy data and threats to national security have occurred,and more and more countries/regions have therefore adopted data localization measures to regulate the cross-border data flow.Chapter 2 is the international practice of data localization measures.In terms of domestic and international practices,although the United States claims to be against data localization,it still adopts strict restrictions on sensitive data within its own country in practice.The EU,on the other hand,implements a loose internal and tight external data localization regime,requiring that the free flow of data within the EU be guaranteed,but adopting strict review standards for data transferred to third parties outside the EU.The regional trade agreements USCMA,CPTPP,and RCEP have adopted more or less restrictive measures on data localization.China,on the other hand,has always attached importance to data security,and has introduced laws and regulations such as the Data Security Law to make requirements for data localization and continuously refine the rules.Chapter 3 is a reflection on data localization measures.Data localization measures have their pros and cons.To a certain extent,such measures can maintain national or regional security and safeguard personal privacy,but complete data localization is not realistic,and data localization measures may not really guarantee data security,and may even hinder the development of digital trade.The logic of data localization measures should be to balance data security and data openness,bridge the data gap between countries in the economic and legal systems as well as in the technical field,and find a balance of interests between the development of digital trade and safeguarding data security.The fourth chapter is to make feasible suggestions on the institutional construction of data localization in the context of digital trade.First,countries should reasonably determine the scope of application of data localization,classify and manage data,prohibit the absolute data local storage model,and set flexible ways for data crossborder transmission.Secondly,they should reasonably allocate data rights,establish the scope of data that enterprises can independently decide to transfer across borders,clarify the responsibilities of national data management agencies,and determine the relationship between the consent of data rights subjects and data sovereignty.Finally,international data legislation and law enforcement cooperation should be carried out to coordinate the rules of cross-border data transmission among countries on the basis of mutual understanding,and to build general rules for data classification and management.