The US Urges Its Diplomats to Oppose Data Sovereignty Push

The US administration told the country’s diplomats to push back against foreign data sovereignty laws. The White House argues that those regulations would threaten global data flows while limiting AI and cloud services.

An internal diplomatic cable, signed by US Secretary of State Marco Rubio, stated that data sovereignty, or data localisation regulations, could also increase costs and heighten cybersecurity risks. The cable stated the European Union’s GDPR laws are unnecessarily burdensome for US tech companies because they impede cross‑border data transfers.

The cable further accuses China of linking its global tech infrastructure projects to restrictive data rules, which expand its influence. The directive also instructs diplomats to monitor new data‑restriction proposals and promote the Global Cross‑Border Privacy Rules Forum, a group formed by the US, Mexico, Canada, Australia, and Japan, which is aimed at supporting the free flow of data internationally.

The document follows previous US efforts to oppose the EU’s digital regulations, including the Digital Services Act. The Trump administration is attempting to control the AI narrative both at home and abroad, citing the need to protect the country’s AI dominance in the face of perceived threats by countries such as China.