Shackling data flows
Companies based in China—domestic and multinational—are increasingly constrained
Over the weekend, Apple was compelled by the Chinese government to pull VPN apps from its China App Store. VPN or virtual private network software allows users to bypass firewalls—even those imposed by governments to block specific sites or services.
In June, Beijing introduced a cyber security law that puts encryption and all data flows in and out of China under government control. Companies based in China—domestic and multinational—are increasingly constrained: from no longer being able to access basic services such as Gmail and news that hasn’t been run through government filters, to the difficulty of accessing information necessary for business decisions.
Indeed, as the Financial Times has reported, a European Chamber of Commerce survey earlier this year showed that such restrictions were having a significant impact on companies’ revenue.
China presents what could be an intriguing test of the economic implications of government control of data.
- Opinion | Atal Bihari Vajpayee exuded unusual warmth, comfort
- Opinion | Turkey flashes warning sign to Asia
- Opinion | What the shrinking trend of urban households tells about us Indians
- Opinion | The growth outlook and the investment potential of states
- Opinion | We still don’t know whether Uber is a real business
Latest News »
Editor's Picks »
- Walmart completes deal to buy Flipkart for $16 billion
- Volkswagen CEO knew about emissions software months before scandal
- Insolvency: Govt may come up with new law for registered valuers
- Rupee likely to stabilise at 68-69 a dollar, says government
- Turkey will defy economic threats, says President Erdogan