US unveils new rules to block China, Russia and Iran from accessing bulk US data

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The seal of the U.S. Justice Department is seen on the podium in the Department's headquarters briefing room before a news conference with the Attorney General in Washington, January 24, 2023.  REUTERS/Kevin Lamarque/File Photo

The US has been trying to stem the flow of American personal data to China, part of a years-long struggle over trade and technology.

PHOTO: REUTERS

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The US Justice Department on Oct 21 proposed new rules to protect federal government data or Americans’ bulk personal data from getting into the hands of countries such as China, Iran and Russia by placing new limits on certain business transactions.

The proposal, previewed in March,

implements an executive order issued earlier in 2024

by US President Joe Biden, which aims to keep foreign adversaries from using accessible American financial and genomic data and health data for cyber attacks, espionage and blackmail.

In addition to China, Russia and Iran, the rule would also apply to Venezuela, Cuba and North Korea.

Washington has been trying to stem the flow of American personal data to China, part of a years-long struggle over trade and technology.

In 2018, a US panel that reviews foreign investments for potential national security threats rejected a plan by China’s Ant Financial to acquire US money transfer company MoneyGram International because of concerns over safety of data that can be used to identify US citizens.

The officials said transactions will be banned with data brokers who know the information will end up in “countries of concern”, as will the transfer of any data on US government personnel.

The Oct 21 proposal for the first time gave more specific details about the types and amounts of data that cannot be transferred, including human genomic data on more than 100 Americans or personal health or financial data on over 10,000 people.

The proposal would also bar the transfer of precise geolocation data on more than 1,000 US devices.

The rule would allow the Justice Department to enforce compliance both through criminal and civil penalties.

US officials told reporters on Oct 21 that Chinese apps such as TikTok could run afoul of the proposal if they transferred sensitive data from US users to a Chinese parent company. REUTERS

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