TikTok, Tesla just the start of US-China data clash
not the first and will not be the last Chinese company that US lawmakers target,” she said. “It would seem that tech decoupling—or at least reducing dependence on the other — is becoming increasingly popular among both parties.”
Data security is again taking center stage in the intensifying rivalry between the US and China as Biden faces a rematch in November with Donald Trump, whose administration sought to block countries from buying Huawei Technologies Co. equipment for 5G networks. Later Trump proposed a “Clean Network” to prevent Beijing from accessing sensitive personal data of Americans.
While Biden hasn’t gone that far, the clash over data has picked up in recent months. China has been using its 2021 data security law to step up supervision of sectors from agriculture to geography, and the US is raising concerns over logistics networks, autonomous driving and drones. Further restrictions risk carving up parts of the global economy.
“It’s not clear where it ends, unless you want China to proverbially roll over and crawl into a corner, and obviously that’s not going to happen,” said Rogier Creemers, an assistant professor at the University of Leiden who researches China tech policy. “As long as risk exists, there’s always a reason to say we have not de-risked enough, so we need to de-risk more.”
AI era
New technology is creating new risks. Modern devices are becoming ever smarter, gaining unprecedented abilities to generate and transmit data.
Cars collect information on drivers and passengers, while medical devices can parse and process personal healthcare intelligence. Washing machines, port cranes and even clothes connect to some sort of remote server. The AI era only promises to magnify those capabilities.
The TikTok-inspired law in US will extend to any “foreign adversary controlled application” that the American president deems a national security risk. That could change the operating landscape for Chinese platforms like Tencent Holdings’s WeChat or PDD Holdings’s Temu. While China-originated fast fashion giant Shein is now headquartered in Singapore, it has also faced congressional scrutiny given its vast supply chain networks in China.
Complicating TikTok’s case further is the worry among lawmakers about China’s ability to influence US public opinion. TikTok raised eyebrows last month when it mobilized users to petition against a potential ban, demonstrating its influence on Americans.
“Social media of all kinds, as well as messaging apps and websites, can be and are being used by foreign governments to attempt to influence US public opinion,” said Milton Mueller, a professor specializing in cybersecurity policy at the Georgia Institute of Technology. “TikTok is no different from Twitter or Meta or YouTube in this regard.”
Beyond tech apps, US lawmakers have scrutinized data security risks from other China-owned companies. In February, the Biden administration vowed to invest more than $20 billion in port security, after flagging potential espionage and disruption risks from Shanghai Zhenhua Heavy Industries Co. Ltd.’s cranes.
Washington has moved to ban cars containing Chinese technologies such as LiDAR, from the likes of Hesai Group, fearing risks to US military sites. Hesai, the world’s largest supplier of LiDAR, threatened legal action after the US put it on a list of “Chinese Military Companies.”
China’s biggest EV stars like BYD Co. Ltd. have little presence in the American market given high US tariffs, but the Biden administration has mulled restrictions that would prevent Chinese makers from moving cars and components into the US through third countries like Mexico.
China has also been clamping down on overseas access to data such as financial indicators, academic databases and even politicians’ biographies. Beyond its highly censored internet regime known as the Great Firewall, Beijing has raised the alarm about foreign actors exploiting anything from geographic data — which it says could reveal critical infrastructure and military networks — to key information on food production, genetics, and weather. Chinese authorities have implemented complex approvals to transfer personal data outside of the country, a widening ban on Apple’s devices in state-owned companies, and restrictions on Tesla’s vehicles in government compounds — even though both Apple and Tesla have fully localized the data they collect in China.
Xi has long seen data as a core pillar of his flagship “holistic approach to national security,” as Beijing highlights growing risks of information theft from cyberattacks.
China is clamping down on overseas access to data like financial indicators, and even politicians’ biographies