Abstract: The Fourth Industrial Revolution has endowed the concept of state sovereignty with new era-specific connotations, leading to the emergence of the theory of data sovereignty. While countries refine their domestic legislation to establish their data sovereignty, they are also actively engaging in the negotiation of cross-border data flow rules within international trade agreements to construct data sovereignty. During these negotiations, countries express differing regulatory claims, with some focusing on safeguarding sovereignty and protecting human rights, some prioritizing economic promotion and security assurance, and others targeting traditional and innovative digital trade barriers. These varied approaches reflect the tension between three pairs of values: collectivism and individualism, freedom and security, and tradition and innovation. Based on their distinct value pursuits, three representative models of data sovereignty construction have emerged globally. At the current juncture, when international rules for digital trade are still in their nascent stages, China should timely establish its data sovereignty rules, actively participate in global data sovereignty competition, and balance its sovereignty interests with other interests. Specifically, China should explore the scope of system-acceptable digital trade barriers through free trade zones; integrate domestic and international legal frameworks to ensure the alignment of China’s data governance legislation with its obligations under international trade agreements; and use the development of the “Digital Silk Road” as a starting point to prioritize the formation of digital trade rules with countries participating in the Belt and Road Initiative, promoting the Chinese solutions internationally.

 

Keywords: data sovereignty · cross-border data flow · international trade agreements · digital trade rules