Proceed With Caution in Protecting American Data From Foreign Adversaries, ITIF Warns

WASHINGTON—Following the White House announcement that President Biden has issued an executive order to protect Americans’ sensitive personal data from exploitation by countries of concern, the Information Technology and Innovation Foundation (ITIF), the leading think tank for science and technology policy, released the following statement from Associate Director of Trade Policy Nigel Cory:

Foreign adversaries should not be able to purchase sensitive U.S. data. But before the Biden administration proposes new rules on bulk data transfers, it should clarify the evidentiary basis in terms of whether and how foreign adversaries have acquired sensitive U.S. data from private firms.

Bad actors will try to evade restrictions, so understanding the threat will be necessary to design an effective response. Good policy should be based on reliable evidence, and it will take all stakeholders working together to ensure that any future program is targeted and effective.

The administration also should be careful not to undermine the critical role that data and data flows play in the U.S. economy, because data use and transfers are also critical to U.S. economic security and technology leadership.

Finally, while the Biden administration is right to address threats to U.S. data privacy and national security through executive actions, the most pressing priority should be to work with Congress to pass a federal data protection law.