China has delayed the release of a measure that would restrict foreign companies from taking certain data out of the country, said the Financial Times.
Beijing had planned to announce regulations restricting cross-border data transfers by the end of last year, but regulators have dragged their feet to avoid sparking another confrontation with US companies, as US-China trade talks have now reached a critical stage, reported the Financial Times.
The regulation’s requirement to keep “important data” within China could force multinational companies to restructure the way they store data in clouds.
“Some multinationals are onshoring their data already, while some are waiting and seeing,” said Carly Ramsey, associate director of Control Risks, a consultancy in Shanghai. “It’s an internal organisation issue, which is costly.”