WASHINGTON: President Joe Biden’s administration unveiled an executive order on Wednesday targeting the protection of American personal data by imposing restrictions on its transfer to countries such as China, Russia, and others due to national security concerns.
The order, initially reported by Reuters, aims to limit the bulk transfer of Americans’ geolocation, biometric, health, and financial information by data brokers and other entities to specific “countries of concern,” according to senior US officials.
Additionally, the order prohibits the transfer of any amount of data concerning US government personnel to these countries, which also include Iran, North Korea, Cuba, and Venezuela.
Officials highlighted concerns over China and Russia acquiring sensitive American personal data through data brokers and exploiting it for various illicit activities, including cyber-enabled operations, espionage, and coercion.
They emphasized that the purchase of data through data brokers is currently legal in the US, which represents a gap in national security measures that the executive order seeks to address.
This move is part of ongoing efforts by Washington to halt the flow of American data to China, particularly amidst the ongoing trade and technology tensions between the two countries.
The US Congress is also deliberating legislation to prohibit federal agencies from engaging with Chinese companies like BGI Group and Wuxi APPTEC, aiming to safeguard American genetic and health information.
The order also directs the Department of Justice to solicit industry feedback on proposed measures before implementation to ensure adequate consideration of potential impacts on economic activity.
Furthermore, exemptions are provided for certain types of data, such as corporate payroll and compliance information, while specific transactions like cloud services and investment agreements may proceed under certain security provisions.
The White House underscores the growing collection of American data by companies and the risks associated with its resale to foreign entities, emphasizing the need for enhanced safeguards to protect national security interests.
