China’s Data Policies Pose Challenges for US Companies in China


Contact in Washington, DC:
Doug Barry ([email protected]; +1-202-429-0340)
Contact in Beijing:
Matt Margulies ([email protected]; +86-10-6512-5854)
BEIJING—April 21, 2022—China’s evolving data, privacy, and cybersecurity regimes stand to significantly raise the costs of doing business in China, according to a report released today by the US-China Business Council (USCBC), an organization representing more than 260 American companies that operate in the China market.

The American business community in China must now navigate an increasingly complex regulatory environment that includes new and growing requirements ranging from data localization, government reviews of certain data flows across borders, and prescriptive cybersecurity requirements for hardware and software procurement.

The report, How American Companies are Approaching China's Data, Privacy, and Cybersecurity Regimesdetails how conflicting regulations and a lack of clear guidelines hinder pro-active compliance from businesses and negatively impact business and investor sentiment. Companies report that China’s data, privacy, and cybersecurity requirements are inconsistent with other markets and require duplication of hardware, software, and processes. Continuing down this path could lead to the bifurcation of China’s data environment and that of the rest of the global economy, unwinding decades of economic integration.

“American companies recognize the legitimate need for data, privacy, and cybersecurity safeguards in China and globally. Our members seek to comply with those safeguards without hindering mutually beneficial, long-term, digitally driven growth,” said Craig Allen, USCBC president.

“American companies want and need to leverage their global strength in China, but they worry that the costs, complexity, and nature of China’s data and privacy frameworks increasingly will limit their ability to do so,” said USCBC Senior Vice President in China Matthew Margulies.

Learn more about the report and the US-China Business Council at

Read the full report here




Doug Barry ([email protected]; +1-202-429-0340)


Matthew Margulies ([email protected]; +86-10-6512-5854)





“美国企业理解在中国和全球范围内存在对数据、隐私和网络安全保障的正当要求。我们的会员企业寻求在不影响经济获得长期的、互利的、数字驱动的增长的前提下遵守这些保障措施。”美中贸易全国委员会会长克雷格•艾伦(Craig Allen)指出。

美中贸易全国委员会高级副会长马修•马古利斯(Matthew Margulies)表示:“美国企业不仅希望而且需要在中国发挥它们的全球实力,但是它们担心中国的数据和隐私框架本身的特性、及其所带来的成本、复杂性将越来越限制美国企业施展能力的空间。”