New data transfer rules pursued to keep out China and Russia

May 16, 2022 | News On Japan

May 16, 2022 (Nikkei) - Japan, the U.S., South Korea and four other APEC members have agreed to make personal data transfer rules independent of the regional forum's current framework in a move to exclude China and Russia.

With Russia and China as members of the Asia-Pacific Economic Cooperation forum, there were concerns about the flow of personal data. The new rules create a framework among members with a shared sense of trust. Plans call for the inclusion of non-APEC members, including South American countries.

APEC's Cross-Border Privacy Rules, which have served as a unified standard, will be reassessed. Companies are required to comply with each country's regulations in handling personal information, and the numerous procedures involved in transfers across borders can be a burden. Once certified, companies can smoothly transfer data among APEC markets, making it easier to do business.

Japan introduced the Data Free Flow with Trust concept in 2019, aiming to create an environment where data can be exchanged among countries with mutual trust. There has been a growing shared recognition between the U.S. and Japan that data transfer frameworks had reached their limits with the involvement of Russia and China.

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