EU & Germany Tighten Economic Security by 2025 to Counter China's Data Collection
The EU and Germany are bolstering their economic security strategies by 2025, emphasizing enhanced intelligence gathering and sharing. This action is a response to China's aggressive data collection practices, which provide it with a comprehensive picture of Western corporate vulnerabilities.
China mandates Western companies to divulge detailed data, encompassing supplier information, technical processes, and end-user data. It also enforces on-site inspections. In Germany, federal and state legislators establish the legal framework for data exchange, while Federal and State Data Protection Officers ensure compliance with regulations like the GDPR.
To bridge the information gap, European policymakers are contemplating the 'carbon copy' principle. This would necessitate companies to share documentation submitted to the Chinese Ministry of Commerce with their own governments. Inspired by Japan's Act on the Protection and Utilization of Critical Economic Security Information, a legal framework for sensitive data sharing between businesses and governments could facilitate this process.
The EU faces a risk of lagging behind China in economic intelligence due to China's export restrictions on rare earths and permanent magnets. European companies comply with Chinese demands due to China's near monopoly on these goods, giving China an asymmetric information advantage.
The EU and Germany aim to fortify their economic security strategies by 2025, focusing on improving intelligence gathering and sharing. This move is a response to China's aggressive data collection practices and the EU's risk of falling behind in economic intelligence. Establishing a legal framework for sensitive data sharing between businesses and governments is a pivotal step in this process.
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