Foreign Firms Concerned Over Murky Chinese Laws on AI and Data Governance, Says EU Official

Foreign firms in China are expressing concerns over the lack of clarity in Chinese laws surrounding artificial intelligence (AI) and data governance, according to a top European Union (EU) official. Vera Jourova, the EU’s digital chief and vice president of the European Commission, raised these concerns during discussions with Chinese counterparts, including Vice Premier Zhang Guoqing. Jourova highlighted the unpredictability of regulatory decisions and interpretations as a major issue for European businesses operating in China. Beijing has recently implemented new regulations on cybersecurity, counterespionage, and data management, citing the need to enhance national security. However, foreign firms are worried about the impact these regulations will have on their operations in the world’s second-largest economy. The vague wording of the laws and the lengthy procedures foreign firms must navigate to conduct business in China were specifically criticized. Jourova emphasized that European firms want clear and easily compliant laws, without criticizing China’s legal framework. The concerns raised by Jourova come at a time of deteriorating ties between China and the West, with issues such as AI, misinformation, and data security causing further unease. The EU is keen to define its approach to China, focusing on improving resilience and competitiveness while protecting essential European interests. However, some European powers are cautious about severing business ties with China. China has pushed back on the de-risking strategy advocated by the EU and its allies, warning of potential risks.