Biden eyes new ways to bar China from accessing US data

WASHINGTON • The Biden administration has drafted an executive order that would give the Department of Justice vast powers to stop foreign adversaries such as China accessing Americans' personal data, according to a person familiar with the matter and excerpts.

The proposal, which is being reviewed by government agencies, would also direct the Department of Health and Human Services to prevent federal funding from supporting the transfer of US health data to foreign adversaries, according to the excerpts.

The draft order reflects an effort by the administration to respond more aggressively to national security threats allegedly posed by Chinese firms that acquire reams of US personal data, after failed bids by the Trump administration to bar Americans from using popular social media platforms TikTok and WeChat.

Former president Donald Trump tried to ban the apps in 2020 alleging that data collected by them could be given to Beijing and used to track users and censor content. China and the apps have denied any improper use of US data.

But the courts halted implementation of the bans and President Joe Biden later revoked them.

Spokesmen for the White House and the Commerce and Justice departments declined to comment. The Department of Health and Human Services did not respond to requests for comment.

The document is an initial draft that does not include input from government agencies and may change, according to another person familiar with the matter.

Asked about the proposal at a regular media briefing yesterday, Chinese foreign ministry spokesman Zhao Lijian said that while China believed each country had the right to take measures to protect the personal data and privacy of its citizens, relevant initiatives should be "reasonable and scientific".

They "should not be relegated as a tool for individual countries to over-generalise the concept of national security, abuse national power, and unreasonably suppress specific countries and enterprises", said Mr Zhao.

Ms Samm Sacks, a senior fellow at Yale Law School's Paul Tsai China Centre who examines information and communications policies, said the US was trying to decide how to deal with the issue. "What's clear is the Biden administration is grappling with how to address this new risk frontier in the US-China relationship, which is the Chinese government's access to Americans' sensitive data."

If implemented, the draft order would grant Attorney-General Merrick Garland the authority to review and potentially bar commercial transactions involving the sale of or access to data if they pose an undue risk to national security.

The proposal would also instruct the Department of Health and Human Services to get started on writing a rule "to ensure that federal assistance, such as grants and awards, is not supporting the transfer of US persons' health, health-related or biological data...to entities owned by, controlled by, or subject to the jurisdiction or direction of foreign adversaries".

US intelligence has warned about the risks posed by Chinese firms collecting Americans' personal data by investing in US companies that handle sensitive healthcare information.

China's BGI bought US genomic sequencing firm Complete Genomics in 2013 and in 2015, Chinese WuXi Pharma Tech acquired American firm NextCODE Health, the National Counterintelligence and Security Centre noted in a 2021 fact sheet.

The draft order comes as administration officials grow frustrated with the Commerce Department over delays in rolling out rules and investigating threats under similar powers granted to that department by Mr Trump in 2019. Those powers allow the Commerce Department to ban or restrict transactions between American firms and Internet, telecom and tech companies from "foreign adversary" nations, including Russia and China.

REUTERS