As technologies such as AI pose new risks, from genomic information to connected cars, the United States is rethinking its data protection policies with an eye toward further trade restrictions targeting China.
Last week alone, President Joe Biden took steps to expand Washington’s national security toolkit to address potential risks from Chinese-made vehicles and technology, a day after issuing an order restricting the flow of sensitive personal data overseas. It sounded the alarm.
The concern is that this data could be used to track people, including those in sensitive jobs, or to train artificial intelligence models.
The use of sensitive data in the development of AI means that adversaries could use this technology to spy on individuals in the United States, including recognizing patterns across datasets to identify people whose ties to the government would be hidden. It may be possible to target them for activities or extortion.
Lindsey Gorman, a senior fellow at the German Marshall Fund in the US, said the US government was beginning to recognize the “strategic and national security value of data”.
He said the Commerce Department’s investigation into the risks posed by Chinese technology in connected cars is “a long-overdue investigation into the application layer of the future Internet.”
“We should expect more research into data generated on the Internet of Things,” she said.
– “Recalibration” –
Emily Benson of the Center for Strategic and International Studies (CSIS) said the moves demonstrate “broader concerns about the national security risks that arise from unfettered access to data.”
Martin Chozempa, a senior fellow at the Peterson Institute for International Economics, said Chinese companies have been able to legally buy large amounts of U.S. data until now.
This creates an “imbalance,” he said, adding that the order closes a “loophole.”
Although the U.S. government has sought to limit foreign companies’ acquisition of American companies and access to U.S. data on national security grounds, companies can still obtain information.
A Duke University study published in November found that sensitive data on active-duty military personnel is not difficult to obtain, and the information can be obtained through data brokers for as little as 12 cents per record.
“Overall, what we’re seeing is a recalibration of the U.S. approach, which has traditionally been leaning toward free flows of data,” said Benson, director of trade and technology projects at CSIS.
“Those days seem to be over,” she told AFP.
– Game-changing technology –
This approach to data comes as the United States ramps up broader efforts to boost economic growth and maintain the U.S. lead in the technology race with China, while putting national security guardrails in place. .
A key element is AI, which can quickly analyze and manipulate large amounts of data when conducting espionage and cyber operations.
“Part of it is a basic security approach to suppress certain high-risk AI capabilities,” Benson said.
At the same time, Washington’s need to gain an edge in AI is spurring other federal policies, such as the CHIPS Act, which pumps $39 billion into manufacturing incentives.
Commerce Secretary Gina Raimondo said Monday that AI is a “game changer” in demand for advanced chips, adding that the U.S. could eventually accommodate the entire supply chain to produce such semiconductors.
According to the Semiconductor Industry Association, most of the world’s semiconductor manufacturing capacity is currently located in China and East Asia.
– catch up? –
“China has been very active in building its own data protection and data security regime,” Chorzempa said.
“One of the elements is the restrictions on the data that can be transferred across borders,” he added, noting that foreign companies cannot always obtain data about their own citizens from China.
CSIS’ Benson said the U.S. move shows the United States is becoming more aligned with the data governance regimes of its close partners.
The European Union has strict data protection laws, including the 2018 General Data Protection Regulation, and regulations that cover the flow of large amounts of commercial data between devices.
Japan has promoted the flow of data while ensuring privacy and security trust.
“It will be interesting to see how much (US action) actually fosters convergence between regimes, or whether it steps into uncharted territory in terms of digital governance,” Benson said.
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