Data Governance and Cross-Border Flow Regulations: A Comparative Study of China’s FTAs and WTO Framework

Abstract

The exponential rise of the digital economy has amplified the importance of cross-border data flows and data governance as central issues in international trade law. This study critically examines and compares the regulatory frameworks governing data flows under China’s Free Trade Agreements (FTAs) and the World Trade Organization (WTO) framework, particularly through the lens of the Joint Statement Initiative (JSI) on e-commerce. The research investigates how China’s sovereignty-oriented approach to data governance contrasts with the WTO’s liberalization-focused model. Employing a comparative legal methodology, the study analyzes key provisions on data localization, regulatory autonomy, and cross-border data transfer commitments in both regimes. Findings reveal that while the WTO framework advocates minimal barriers to data flows to enhance global trade, China’s FTAs embed broad exceptions based on public policy and national security, reflecting a strategic emphasis on digital sovereignty. The article concludes that this divergence could lead to regulatory fragmentation but also opens space for pluralistic governance models. For developing countries, China’s model offers a pragmatic alternative to reconcile digital trade facilitation with domestic regulatory priorities.