US Instructs Diplomats to Oppose Data Sovereignty Efforts

The Trump administration has directed US diplomats to advocate against regulations on how US tech firms manage foreign data, indicating in an internal diplomatic message obtained by Reuters that such actions might disrupt services related to artificial intelligence.
Experts indicate that this decision suggests the Trump administration is returning to a more adversarial stance as several foreign nations pursue restrictions on how Silicon Valley companies manage and retain their citizens' private data—initiatives commonly referred to as "data sovereignty" or "data localization."
In the cable from the State Department, dated February 18 and signed by US Secretary of State Marco Rubio, the agency stated that these laws would "disrupt global data flows, raise costs and cybersecurity risks, limit Artificial Intelligence (AI) and cloud services, and extend government control in manners that can compromise civil liberties and facilitate censorship."
The cable indicated that the Trump administration was advocating for "a more proactive international data policy" and that diplomats ought to "combat excessively burdensome regulations, including data localization requirements."
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The State Department refrained from commenting on the cable. Nonetheless, it stated that the US firmly backs cross-border data transfers that enhance growth and innovation while safeguarding privacy, security, and free expression, and is prepared to collaborate with nations that share these objectives.
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"We aim to oppose overly burdensome regulations, like data localization requirements," it stated.
Data sovereignty efforts have accelerated, especially in Europe, amid rising tensions between the U.S. and the European Union due to Washington's protectionist trade measures and backing of far-right political factions.
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The supremacy of American artificial intelligence firms - numerous of which rely on extensive collections of personal information to fuel their models - has highlighted European apprehensions regarding privacy and monitoring. Authorities throughout the continent have heightened demands on American social media corporations as well.