Japan and US to Propose WTO Rules Countering Chinese Regime’s Data Transfer Law

The sun rises at the World Trade Organization headquarters in Geneva, Switzerland, on July 21, 2008. Fabrice Coffrini/AFP/Getty Images

Last June, a new internet regulation took effect in China that sent foreign firms into a panic: all domestic and foreign firms would be required to store their data on servers within China, and be subject to security checks by Chinese authorities.

Companies grew concerned that this would allow the Chinese regime access to sensitive information and conduct espionage.