The administration of Donald Trump has instructed U.S. diplomats to push back against foreign efforts to regulate how American technology companies handle the personal data of non-U.S. citizens, according to an internal diplomatic cable seen by Reuters.
The cable signed by U.S. Secretary of State Marco Rubio, warns that data sovereignty and data localization laws could disrupt global data flows and interfere with artificial intelligence. It believes that such kind of regulation can increase cybersecurity risks, expand government control over information and enable censorship.
Rubio called for what the cable described as a “more assertive international data policy,” urging diplomats to counter what it labeled “unnecessarily burdensome regulations,” including mandates requiring data to be stored within national borders. The State Department did not respond to requests for comment.
Data sovereignty initiatives have gained momentum, particularly in Europe, amid rising tensions between Washington and Brussels over trade policies.
The cable specifically criticized the European Union’s General Data Protection Regulation, saying it imposed excessive restrictions on cross-border data transfers. GDPR, enacted in 2018, has resulted in large fines for several U.S. tech companies.
The document also accused China of pairing technology infrastructure projects with restrictive data policies to expand its global influence and gain access to foreign data for surveillance purposes. China’s embassy in Washington said it was not familiar with the cable but emphasized Beijing’s focus on cybersecurity and data protection.
As part of the directive, U.S. diplomats were asked to monitor proposed limits on cross-border data flows and promote the Global Cross-Border Privacy Rules Forum, an initiative launched in 2022 to encourage international data sharing alongside privacy protections.
This move follows U.S. efforts to oppose European digital regulations which seeks to hold major online platforms accountable for harmful content.
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