Leading the Development of International Rules for the Digital Economy

On April 27, the National Internet Information Office released the “China Network Rule of Law Development Report (2024)”, the first comprehensive annual report on network rule of law at the national department level. This report serves as a continuation of the “30 Years of China’s Network Rule of Law” report and marks the beginning of China’s annual network rule of law development report. It is of significant importance for showcasing the progress and achievements in network rule of law construction, aiming to write a new chapter in this field.

The report highlights that China is accelerating the improvement of foreign-related network rule of law, actively participating in the formulation of international rules for cyberspace, continuing international exchanges, and building platforms for international cooperation on network law, contributing to a global consensus on cyberspace governance and advancing the process of global internet governance under the rule of law.

In the face of significant uncertainties in global economic growth, the digital economy, characterized by data and information network technologies, has become a new growth point in the global economy in 2024. The competition and restructuring of international economic and trade rules are now at the forefront of international strategic contests.

Data is the core production element of the digital economy, and secure cross-border data flow benefits multinational corporations by enhancing resource allocation efficiency and reducing production and transaction costs. However, the rapid development of the digital economy has brought about complex and serious cybersecurity risks, particularly with cross-national cyberattacks and cybercrimes directly threatening the stability and development of the global digital economy. Breakthrough technologies such as artificial intelligence, quantum computing, and blockchain are reshaping the operation and structure of the international digital economy, leading to new international legal rules. Simultaneously, conflicts between countries over the governance of these technologies are intensifying, and the new governance consensus and rules formed by these disputes are now a key part of the international rules of the digital economy. The gap between countries and regions in internet penetration, infrastructure, and digitalization is large, resulting in highly uneven global development of the digital economy. Developing countries, especially the least developed countries, risk being excluded from the international economic and trade systems. The digital divide is widening into a digital economy and digital trade gap. There is an urgent need to establish a globally coordinated and inclusive data governance framework. Countries must strengthen multilateral cooperation and establish a global cybersecurity defense system to protect the stability of the global digital economy ecosystem.

Throughout the evolution of international rules for the digital economy, China has actively led the development of global digital economy governance rules. China firmly supports multilateral systems such as the United Nations and the World Trade Organization, advocating for trade liberalization and facilitation, opposing unilateralism and protectionism, and promoting inclusive globalization. As the report points out, China has actively participated in the formulation of international rules in critical areas like data security and cross-border data flow, demonstrating China’s unwavering commitment to high-level opening-up and contributing to global internet governance.

China has consistently supported advancing global digital governance through the United Nations as the main channel, contributing Chinese wisdom and solutions to international network governance. In July 2024, the UN General Assembly unanimously adopted the “Resolution on Strengthening International Cooperation on Artificial Intelligence Capacity Building” proposed by China, with over 140 countries co-signing. This resolution emphasizes that artificial intelligence development should adhere to principles that are human-centered, benevolent, and benefit humanity. It proposes a series of pragmatic measures to help countries, especially developing ones, equally benefit from AI development, bridge the digital divide, improve global AI governance, and accelerate the implementation of the 2030 Sustainable Development Agenda. In September 2024, the UN passed the Global Digital Pact, aiming to build a global framework for internet access, data protection, AI regulation, digital skills training, and international cooperation. China constructively participated in the entire negotiation process of the pact, upholding multilateralism, network sovereignty, and equal cooperation, and maintaining a development-oriented approach. In November 2024, China launched the Global Data Cross-Border Flow Cooperation Initiative, encouraging data cross-border transmission, facilitating global e-commerce and digital trade, and promoting the establishment of an open, inclusive, secure, cooperative, and non-discriminatory environment for data flow.

China is also deeply involved in multilateral negotiations on electronic commerce within the World Trade Organization and is actively implementing the Trade Facilitation Agreement and the Asia-Pacific Cross-border Paperless Trade Facilitation Framework Agreement. In 2024, the General Administration of Customs and 14 other government departments launched a special action to promote cross-border trade facilitation, enhancing the digital transformation of smart ports and promoting the cross-border recognition of electronic trade data and documents.

China has been exploring bilateral rule negotiations and pragmatic cooperation in areas such as cross-border data flow, emerging technologies, and telecommunications services, and is expanding consensus on network governance rules with other countries and regions.

In August 2024, the China-EU Cross-Border Data Flow Dialogue Mechanism held its first meeting, discussing specific issues related to data cross-border flow and its regulatory framework, facilitating the exchange between Chinese and European enterprises. Following agreements like the “Belt and Road” Digital Economy International Cooperation Beijing Initiative, the China-Serbia Electronic Commerce Cooperation Memorandum, and others, China continues to push forward the practical cooperation in digital trade.

At the same time, China is promoting regional trade liberalization and integration in the Asia-Pacific region, maintaining a high level of openness. Since the implementation of the Regional Comprehensive Economic Partnership (RCEP), trade and investment in the Asia-Pacific region have steadily increased, reducing trade barriers and improving logistics efficiency. China continues to implement RCEP and is progressing in negotiations related to the Digital Economy Partnership Agreement (DEPA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), reflecting China’s determination to shape global digital economy rules and meet high standards of digital trade.

China has established regular channels for network rule of law communication with many countries to share the benefits and opportunities of internet development. Events like the Global Digital Trade Expo, Global Digital Economy Conference, and the World Internet Conference serve as important platforms for showcasing China’s digital governance proposals.

Summary by DigitalTrade4.EU on base Xue Hong, Huangming Network