China’s bid to join digital economy pact hinges on clarification of data laws, experts say

A special task force has been set up to negotiate China’s membership application for the Digital Economy Partnership Agreement

But Beijing must clarify data laws if it wants to negotiate carve-outs that allow it to maintain digital sovereignty, experts say

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DEPA currently covers Singapore, New Zealand and Chile, while China has applied to join it. Photo: Shutterstock

Published: 8:15am, 27 Aug 2022

China will be able to negotiate carve-outs in the Digital Economy Partnership Agreement (DEPA) that allow it to maintain digital sovereignty, analysts say, but it will have to clarify its data security regime to reduce barriers for businesses.

DEPA, which currently covers Chile, New Zealand and Singapore, builds upon the digital or e-commerce chapters of existing free-trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, adding commitments to help digital trade and cooperation on advanced technologies.

After applying to join last year, it was announced in August that a special task force had been set up to help negotiate China’s membership application.

“The participation will help open up the development of the digital economy,” said a spokesperson for the commerce ministry. “DEPA can benefit members through establishing connected rules and regulations, which creates business opportunities for the industry.”

A possible stumbling block for entry, though, is China’s data and cybersecurity regime, which shields its domestic internet from outside influences, and requires companies keep data related to local customers and operations inside the country.

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