China plans to ease one of the biggest hurdles for foreign business

Chinese authorities are taking a more lenient approach to data rules in a move to ease regulation for businesses, especially foreign ones. The Cyberspace Administration of China (CAC) has proposed that no government oversight is needed for data exports if regulators haven’t specified that it qualifies as “important.” This comes after years of tightened control on data collection and export in China, which foreign businesses have struggled to comply with due to ambiguous wording. The proposed changes demonstrate that the Chinese government is listening to businesses’ concerns and is ready to address them positively. However, the term “important data” remains undefined, subject to Beijing’s determination at any time, so regulatory risk still remains. These proposed changes, along with other recent measures, such as easing AI regulations, signal that Beijing is realizing the economic costs attached to data sovereignty ideals and is taking steps to create a more favorable environment for foreign businesses.