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Regulatory Sandbox for Cross-border Data Flows in Free Trade Zones:Theoretical Validation and Institutional Construction |
Lin Zihan1, Liu Yiming2,3, Yuan Qianli4 |
1. Shanghai Data Exchange, Shanghai 201203, China; 2. School of Cyber Science and Engineering, Wuhan University, Wuhan 430072, China; 3. Institute of Cyber Governance, Wuhan University, Wuhan 430072, China; 4. School of International Relations and Public Affairs, Fudan University, Shanghai 200433, China |
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Abstract Cross-border data flow is one of the significant driving forces for the development of digital economy in the context of digital globalization,and international digital economic and trade agreements such as CPTPP and DEPA regard it as an important element of the agreement.China's regulation on cross-border data flow unfolds with the bottom line of safeguarding data security,but there are problems such as unitary exit paths and strict standards,which makes it difficult to meet the requirements of the above agreements on cross-border data flow.Exploring the regulatory sandbox mechanism for cross-border data flow is in line with the regulatory concept of inclusive prudence and pluralistic governanceand is conducive to achieving a balance between data innovation and risk control.Considering the stability and continuity of the data exit policy,based on the full authorization of the law and relevant policy support,it becomes a reasonable choice to pilot the regulatory sandbox for cross-border flow of data in China's FTZs.Based on the experience of the regulatory sandbox mechanism in the field of financial technology and the EU's AI regulatory sandbox mechanism,it is suggested that the regulatory sandbox for cross-border data flow should be constructed with a two-layer structure of‘security layer + innovation layer’,and dynamic regulatory processes throughout the full cycle of cross-border data flows.It is suggested that the specific rules of the regulatory sandbox should be refined,such as conditions for entering the sandbox,the operation process and the mechanism for exiting from it.At the same time,it is necessary to improve the institutional construction of China's FTZs in terms of legislative breakthroughs and policy incentives to promote the implementation of the regulatory sandbox for cross-border data flow in FTZs.
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Received: 24 June 2024
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