US Sets New Rules to Block China, Rivals' Access to US Data

The US has proposed new rules to protect federal government data or Americans’ bulk personal data from getting into the hands of rival nations such as China, Iran and Russia.

The Justice Department proposal, initially revealed in March, would place new limits on certain business transactions.

It implements an executive order issued earlier this year by President Biden that aims to keep foreign adversaries from using accessible American financial and genomic data and health data for cyber attacks, espionage and blackmail. In addition to China, Russia and Iran, the rule would also apply to Venezuela, Cuba and North Korea.

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Washington has been trying to stem the flow of American personal data to China, part of a years-long struggle over trade and technology.

In 2018, a US panel that reviews foreign investments for potential national security threats rejected a plan by China’s Ant Financial to acquire US money transfer company MoneyGram International, because of concerns over safety of data that can be used to identify US citizens.

The officials said transactions will be banned with data brokers who know the information will end up in “countries of concern”, as will the transfer of any data on US government personnel.

Monday’s proposal for the first time gave more specific details about the types and amounts of data that cannot be transferred, including human genomic data on over 100 Americans or personal health or financial data on over 10,000 people.

The proposal would also bar the transfer of precise geolocation data on over 1,000 US devices.

The rule would allow the Justice Department to enforce compliance both through criminal and civil penalties.

US officials told reporters on Monday that Chinese apps such as TikTok could run afoul of the proposal if they transferred sensitive data from US users to a Chinese parent company.