Fragmented Rules, Global Flows: How Legal Differences Shape the Cross-Border Data Landscape - Evidence from the EU, US, and China

Research Article
Open access

Fragmented Rules, Global Flows: How Legal Differences Shape the Cross-Border Data Landscape - Evidence from the EU, US, and China

Shanglin Jiang 1*
  • 1 Law School, Washington University in St. Louis, St. Louis, USA    
  • *corresponding author j.shanglin@wustl.edu
LNEP Vol.96
ISSN (Print): 2753-7056
ISSN (Online): 2753-7048
ISBN (Print): 978-1-80590-123-5
ISBN (Online): 978-1-80590-124-2

Abstract

The exchange of data across borders has become crucial for international commerce and technological progress. However, major differences in privacy principles and regulatory systems among China, the United States, and Europe have led to fragmented global data governance. This paper examines whether such institutional differences hinder the global economy. Through analysis of cases including Meta, TikTok, Microsoft, and Apple-Google, the study finds that these differences create data barriers, raise compliance costs, and limit cross-border collaboration. To address this, the paper proposes a multi-level coordination framework—international, regional, and national—to achieve equilibrium in data autonomy and international data exchange.

Keywords:

data privacy, cross-border data, regulatory divergence, global governance, legal harmonization

Jiang,S. (2025). Fragmented Rules, Global Flows: How Legal Differences Shape the Cross-Border Data Landscape - Evidence from the EU, US, and China. Lecture Notes in Education Psychology and Public Media,96,47-57.
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References

[1]. European Parliament and Council. General Data Protection Regulation (GDPR), Regulation (EU) 2016/679. Official Journal L 119, April 27, 2016.

[2]. National People’s Congress Standing Committee of the People’s Republic of China. Personal Information Protection Law of the People’s Republic of China. Adopted August 20, 2021, effective November 1, 2021.

[3]. Yamada, Hideo. 2022. “Data Is the Lifeblood of the Global Economy. But Restrictions on Cross-Border Data Flows Are Now a Reality.” United Nations University, October 6. https://unu.edu/article/data-lifeblood-global-economy-restrictions-cross-border-data-flows-are-reality.

[4]. Voss, W. Gregory. 2020. “Cross-Border Data Flows, the GDPR, and Data Governance.” Washington International Law Journal 29 (3): 485–514. https://digitalcommons.law.uw.edu/wilj/vol29/iss3/7.

[5]. Mattoo, Aaditya, and Joshua P. Meltzer. 2018. “International Data Flows and Privacy: The Conflict and Its Resolution.” Journal of International Economic Law 21 (4): 769–789. https://doi.org/10.1093/jiel/jgy044.

[6]. Sullivan, Clare. 2019. “EU GDPR or APEC CBPR? A Comparative Analysis of the Approach of the EU and APEC to Cross-Border Data Transfers and Protection of Personal Data in the IoT Era.” Computer Law & Security Review 35 (4): 380–397. https://doi.org/10.1016/j.clsr.2019.05.004.

[7]. National People’s Congress of the People’s Republic of China. National Security Law of the People’s Republic of China. Adopted July 1, 2015.

[8]. National People’s Congress of the People’s Republic of China. Cybersecurity Law of the People’s Republic of China. Adopted November 7, 2016, effective June 1, 2017.

[9]. National People’s Congress Standing Committee of the People’s Republic of China. Data Security Law of the People’s Republic of China. Adopted June 10, 2021, effective September 1, 2021.

[10]. Chin, Yik-Chan, and Jingwu Zhao. 2022. "Governing Cross-Border Data Flows: International Trade Agreements and Their Limits" Laws 11, no. 4: 63. https://doi.org/10.3390/laws11040063

[11]. Burri, Mira. 2021. “Data Flows versus Data Protection: Mapping Existing Reconciliation Models in Global Trade Law.” In Law and Economics of Regulation, edited by Michael Faure, 129–158. Cham: Springer. https://doi.org/10.1007/978-3-030-70530-5_7.

[12]. Laidlaw, Emily. 2021. “Privacy and Cybersecurity in Digital Trade: The Challenge of Cross-Border Data Flows.” SSRN Scholarly Paper No. 3790936. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3790936.

[13]. Casalini, F., and J. López González. 2019. “Trade and Cross-Border Data Flows.” OECD Trade Policy Papers, no. 220. Paris: OECD Publishing. https://doi.org/10.1787/b2023a47-en.

[14]. Chen, Lurong, Wallace Cheng, Dan Ciuriak, Fukunari Kimura, Junji Nakagawa, Richard Pomfret, Gabriela Rigoni, and Johannes Schwarzer. 2019. The Digital Economy for Economic Development: Free Flow of Data and Supporting Policies. Policy Brief 4, Task Force 8: Trade, Investment and Globalization, T20 Japan 2019. https://ssrn.com/abstract=3413717.

[15]. Council of Europe. Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data (Convention 108). Strasbourg, January 28, 1981.

[16]. Xu, Duoqi. 2018. “International Pattern of Personal Data Cross-border Flow Regulation and China’s Response.” Legal Forum 33 (3): 130–137. https://doi.org/CNKI:SUN:SDFX.0.2018-03-013.

[17]. European Parliament and Council. Directive 95/46/EC on the Protection of Individuals with Regard to the Processing of Personal Data and on the Free Movement of Such Data. Official Journal L 281, November 23, 1995.

[18]. European Parliament and Council. Data Act, Regulation (EU) 2023/2854. Official Journal L, December 13, 2023.

[19]. Court of Justice of the European Union. Maximillian Schrems v Data Protection Commissioner (Schrems I). Case C-362/14, ECLI:EU:C:2015:650. October 6, 2015.

[20]. Court of Justice of the European Union. Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (Schrems II). Case C-311/18, ECLI:EU:C:2020:559. July 16, 2020.

[21]. Irish Data Protection Commission. 2023. “Data Protection Commission Announces Conclusion of Inquiry into Meta Ireland.” Data Protection Commission, May 22. https://www.dataprotection.ie/en/news-media/press-releases/Data-Protection-Commission-announces-conclusion-of-inquiry-into-Meta-Ireland.

[22]. Okenyi, Sunday Chinweike. 2024. Meta: The Cost of Strict Data Privacy Regime in the Era of Technology-Driven Economy. August 20. https://ssrn.com/abstract=4971392.

[23]. United States v. Microsoft Corp., 584 U.S. ___ (2018).

[24]. Campbell, Natalie. 2025. “The Global Impact of a US TikTok Ban.” Internet Society, January 25. https://www.internetsociety.org/blog/2025/01/the-global-impact-of-a-us-tiktok-ban/.

[25]. Bauer, Matthias, Martina F. Ferracane, Erik van der Marel, and Global Commission on Internet Governance. 2016. “Tracing the Economic Impact of Regulations on the Free Flow of Data and Data Localization.” In A Universal Internet in a Bordered World: Research on Fragmentation, Openness and Interoperability, edited by Centre for International Governance Innovation. http://www.jstor.org/stable/resrep05249.9.

[26]. Lu, Wenxi. 2024. “Data Localization: From China and Beyond.” Indiana Journal of Global Legal Studies 31 (1): 183–202. https://muse.jhu.edu/article/924201.

[27]. Ao, Haijing. 2022. “Data Protection Through International Soft Law.” Jurists Review 39 (2): 158–172. https://doi.org/10.16390/j.cnki.issn1672-0393.2022.02.002.

[28]. Zhang, Xiao-jun. 2025. “On the Conflict and Coordination of Data Jurisdiction.” Politics and Law Review (1): 95–109. https://doi.org/CNKI:SUN:ZFLC.0.2025-01-007.

[29]. Standardization Administration of China. Data Security Technology — Rules for Data Classification and Grading (GB/T 43697–2024). Beijing: Standards Press of China, 2024.

Cite this article

Jiang,S. (2025). Fragmented Rules, Global Flows: How Legal Differences Shape the Cross-Border Data Landscape - Evidence from the EU, US, and China. Lecture Notes in Education Psychology and Public Media,96,47-57.

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Volume title: Proceeding of ICGPSH 2025 Symposium: International Relations and Global Governance

ISBN：978-1-80590-123-5(Print) / 978-1-80590-124-2(Online)
Editor：Enrique Mallen, Ifa Khan
Conference website: https://www.icgpsh.org/Boston.html
Conference date: 18 May 2025
Series: Lecture Notes in Education Psychology and Public Media
Volume number: Vol.96
ISSN：2753-7048(Print) / 2753-7056(Online)

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References

[1]. European Parliament and Council. General Data Protection Regulation (GDPR), Regulation (EU) 2016/679. Official Journal L 119, April 27, 2016.

[2]. National People’s Congress Standing Committee of the People’s Republic of China. Personal Information Protection Law of the People’s Republic of China. Adopted August 20, 2021, effective November 1, 2021.

[3]. Yamada, Hideo. 2022. “Data Is the Lifeblood of the Global Economy. But Restrictions on Cross-Border Data Flows Are Now a Reality.” United Nations University, October 6. https://unu.edu/article/data-lifeblood-global-economy-restrictions-cross-border-data-flows-are-reality.

[4]. Voss, W. Gregory. 2020. “Cross-Border Data Flows, the GDPR, and Data Governance.” Washington International Law Journal 29 (3): 485–514. https://digitalcommons.law.uw.edu/wilj/vol29/iss3/7.

[5]. Mattoo, Aaditya, and Joshua P. Meltzer. 2018. “International Data Flows and Privacy: The Conflict and Its Resolution.” Journal of International Economic Law 21 (4): 769–789. https://doi.org/10.1093/jiel/jgy044.

[6]. Sullivan, Clare. 2019. “EU GDPR or APEC CBPR? A Comparative Analysis of the Approach of the EU and APEC to Cross-Border Data Transfers and Protection of Personal Data in the IoT Era.” Computer Law & Security Review 35 (4): 380–397. https://doi.org/10.1016/j.clsr.2019.05.004.

[7]. National People’s Congress of the People’s Republic of China. National Security Law of the People’s Republic of China. Adopted July 1, 2015.

[8]. National People’s Congress of the People’s Republic of China. Cybersecurity Law of the People’s Republic of China. Adopted November 7, 2016, effective June 1, 2017.

[9]. National People’s Congress Standing Committee of the People’s Republic of China. Data Security Law of the People’s Republic of China. Adopted June 10, 2021, effective September 1, 2021.

[10]. Chin, Yik-Chan, and Jingwu Zhao. 2022. "Governing Cross-Border Data Flows: International Trade Agreements and Their Limits" Laws 11, no. 4: 63. https://doi.org/10.3390/laws11040063

[11]. Burri, Mira. 2021. “Data Flows versus Data Protection: Mapping Existing Reconciliation Models in Global Trade Law.” In Law and Economics of Regulation, edited by Michael Faure, 129–158. Cham: Springer. https://doi.org/10.1007/978-3-030-70530-5_7.

[12]. Laidlaw, Emily. 2021. “Privacy and Cybersecurity in Digital Trade: The Challenge of Cross-Border Data Flows.” SSRN Scholarly Paper No. 3790936. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3790936.

[13]. Casalini, F., and J. López González. 2019. “Trade and Cross-Border Data Flows.” OECD Trade Policy Papers, no. 220. Paris: OECD Publishing. https://doi.org/10.1787/b2023a47-en.

[14]. Chen, Lurong, Wallace Cheng, Dan Ciuriak, Fukunari Kimura, Junji Nakagawa, Richard Pomfret, Gabriela Rigoni, and Johannes Schwarzer. 2019. The Digital Economy for Economic Development: Free Flow of Data and Supporting Policies. Policy Brief 4, Task Force 8: Trade, Investment and Globalization, T20 Japan 2019. https://ssrn.com/abstract=3413717.

[15]. Council of Europe. Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data (Convention 108). Strasbourg, January 28, 1981.

[16]. Xu, Duoqi. 2018. “International Pattern of Personal Data Cross-border Flow Regulation and China’s Response.” Legal Forum 33 (3): 130–137. https://doi.org/CNKI:SUN:SDFX.0.2018-03-013.

[17]. European Parliament and Council. Directive 95/46/EC on the Protection of Individuals with Regard to the Processing of Personal Data and on the Free Movement of Such Data. Official Journal L 281, November 23, 1995.

[18]. European Parliament and Council. Data Act, Regulation (EU) 2023/2854. Official Journal L, December 13, 2023.

[19]. Court of Justice of the European Union. Maximillian Schrems v Data Protection Commissioner (Schrems I). Case C-362/14, ECLI:EU:C:2015:650. October 6, 2015.

[20]. Court of Justice of the European Union. Data Protection Commissioner v Facebook Ireland and Maximillian Schrems (Schrems II). Case C-311/18, ECLI:EU:C:2020:559. July 16, 2020.

[21]. Irish Data Protection Commission. 2023. “Data Protection Commission Announces Conclusion of Inquiry into Meta Ireland.” Data Protection Commission, May 22. https://www.dataprotection.ie/en/news-media/press-releases/Data-Protection-Commission-announces-conclusion-of-inquiry-into-Meta-Ireland.

[22]. Okenyi, Sunday Chinweike. 2024. Meta: The Cost of Strict Data Privacy Regime in the Era of Technology-Driven Economy. August 20. https://ssrn.com/abstract=4971392.

[23]. United States v. Microsoft Corp., 584 U.S. ___ (2018).

[24]. Campbell, Natalie. 2025. “The Global Impact of a US TikTok Ban.” Internet Society, January 25. https://www.internetsociety.org/blog/2025/01/the-global-impact-of-a-us-tiktok-ban/.

[25]. Bauer, Matthias, Martina F. Ferracane, Erik van der Marel, and Global Commission on Internet Governance. 2016. “Tracing the Economic Impact of Regulations on the Free Flow of Data and Data Localization.” In A Universal Internet in a Bordered World: Research on Fragmentation, Openness and Interoperability, edited by Centre for International Governance Innovation. http://www.jstor.org/stable/resrep05249.9.

[26]. Lu, Wenxi. 2024. “Data Localization: From China and Beyond.” Indiana Journal of Global Legal Studies 31 (1): 183–202. https://muse.jhu.edu/article/924201.

[27]. Ao, Haijing. 2022. “Data Protection Through International Soft Law.” Jurists Review 39 (2): 158–172. https://doi.org/10.16390/j.cnki.issn1672-0393.2022.02.002.

[28]. Zhang, Xiao-jun. 2025. “On the Conflict and Coordination of Data Jurisdiction.” Politics and Law Review (1): 95–109. https://doi.org/CNKI:SUN:ZFLC.0.2025-01-007.

[29]. Standardization Administration of China. Data Security Technology — Rules for Data Classification and Grading (GB/T 43697–2024). Beijing: Standards Press of China, 2024.

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