By Adetuberu Oluwanifesimi Anthonia
Germany and China have formally agreed to engage in discussions on cross-border data transfer, paving the way for German automakers to transfer data to China. This development marks a significant step forward in addressing a long-standing issue for international companies operating in China, where data localization requirements have been a major point of contention. The European Union and United States have expressed concerns about potential security risks associated with the use of Chinese technology in their markets, particularly with regard to data collection and localization. The declaration of intent signed by Germany and China represents a crucial step towards finding a mutually beneficial solution to this complex issue.
A Memorandum of Understanding (MOU) has been signed by Germany’s Minister for Digital Affairs and Transport and the Director of China’s Cyberspace Administration, building on a cooperation agreement between the two nations on autonomous driving signed in April. The MOU aims to facilitate the free flow of data while addressing privacy and security concerns. According to German Minister Volker Wissing, the agreement provides a foundation for a dialogue mechanism, enabling the countries to strike a balance between data exchange and protection. This development signifies a significant step forward in fostering collaboration and trust between Germany and China in the realm of digital technologies.
Minister Volker Wissing emphasized the significance of the Memorandum of Understanding, stating, “We are establishing a continuous exchange and a shared understanding of the data policy legal framework between our nations.” This development follows a notable shift in China’s stance on data regulations, as the country’s regulators have recently indicated a willingness to reconsider their earlier proposal to ban smart vehicles from transferring data abroad. The auto industry has been closely watching this development, as self-driving cars generate vast amounts of data on passenger and driver behavior, as well as their surroundings.