China Advances Cross-Border Data Flow Amid Global Digital Transformation

The World Data Organization (WDO) has recently been formally established in Beijing, marking a significant shift in global data governance from "fragmented game-playing" to a new phase of "multilateral co-governance". As the world’s first professional international organization focusing on promoting data development and governance practices, its establishment fully demonstrates China’s proactive steps and sense of responsibility in participating in the international governance of cross-border data flow.

As the world accelerates into the intelligent era, data not only serves as a basic resource and innovation engine, but also a key carrier for China to participate in global digital economy competition and advance high-level opening-up. The Outline of the 15th Five-Year Plan for National Economic and Social Development of the People’s Republic of China clearly states the need to "actively participate in international governance in fields such as artificial intelligence, digital currency and cross-border data flow", which has pointed out the direction and set the tone for China’s cross-border data flow.

Against the backdrop of new international and domestic situations, how to promote safer, more efficient and convenient cross-border data flow? Recently, a reporter from the Securities Daily exclusively interviewed Li Denggao, Deputy General Manager of the Shanghai Data Exchange, who provided in-depth insights into the current development status, future trends and practical paths for enterprises regarding China’s cross-border data flow.

Li Denggao told the Securities Daily that driven by innovations in platforms such as pilot free trade zones and data exchanges, cross-border data flow in China is accelerating towards higher efficiency, greater security and more convenience, entering a new stage where policies, technology and industry work together.

He elaborated that China’s policy logic in cross-border data has undergone a fundamental transformation, shifting from passive response to actively building rules and expanding cooperation to address security issues constructively. Technological support capacity has also been significantly enhanced: artificial intelligence technologies represented by large models have improved the intelligence level of data export review, while cross-border cooperation mechanisms with Global South countries and the acceleration of infrastructure construction such as cross-border optical cables have provided reliable hardware support.

Industrial demand for cross-border data has also exploded in multiple areas, extending from traditional commerce and logistics to high-value-added sectors. "The most vibrant demand currently focuses on cross-border finance and payment, biomedicine, intelligent connected and new energy vehicles, cultural and creative animation, digital content, and commercial aerospace," Li noted.

While making positive progress, Chinese enterprises still face multiple internal and external challenges. Li pointed out that major global economies are accelerating the construction of regulatory barriers centered on data sovereignty, leading to fragmented rules and higher compliance costs for enterprises. However, such external pressures have also forced enterprises to upgrade their internal systems, including establishing dynamic rule databases and increasing technological investment for intelligent compliance management.

Li emphasized that China’s core policy orientation for cross-border data flow has shifted from a defensive logic to a value-creating one, focusing more on openness, cooperation, development and win-win outcomes. This shift involves strategies such as prioritizing computing power over direct data export, strengthening national-level judicial coordination for rule recognition, and promoting clustered and ecological industrial development.

He further stated that China’s cross-border data flow is expected to enter a golden opportunity period in the next 1 to 3 years, with accelerated model innovation, infrastructure layout and rising discourse power in global data governance. He also offered practical suggestions for enterprises, including building national-specific rule databases, increasing technological investment for intelligent compliance, and integrating compliance requirements into the entire product lifecycle.