EU, China launch new data flow mechanism

The European Union (EU) and China initiated the first discussion under the newly-established Cross-Border Data Flow Communication Mechanism, according to EU statement on Wednesday.

This mechanism is a result of the political agreement reached in 2023 between EU Vice-President Věra Jourová and Chinese Vice-Premier Zhang Guoqing.

The primary objective of the mechanism is to address the concerns of European businesses operating in China regarding cross-border transfers of non-personal data.

Data flows are crucial for trade and investment, particularly in sectors such as finance, insurance, pharmaceuticals, automotive, and information and communication technology.

European companies in China have faced increasing uncertainty and difficulties in exporting data due to the 2022 adoption of the law on Measures for Data Export Security Assessment.

The vague definition and broad application of “important data” have exacerbated these concerns, leading to a decline in investor confidence.

Through the new mechanism, the EU aims to find ways to facilitate cross-border data flows while ensuring compliance with Chinese data laws.

The co-operation structure between the EU and China will involve expert and technical-level engagement, with progress reviews taking place at future political meetings.

Attribution: European Uonin report

Subediting: M. S. Salama