Adaptive Sovereignty: China's Evolving Legislative Framework for Transnational Data Governance

Abstract

The exponential growth of data has turned transnational data governance into a strategic priority for global data hubs. While the concept of "data as the new oil" highlights big data's economic value, the dominance of large technology firms and increasing geopolitical tensions have prompted states, particularly China, to assert stronger control over cross‐border data flows. Since the 2016 Cybersecurity Law, China's legislative approach has evolved significantly, culminating in comprehensive frameworks such as the Personal Information Protection Law and the Data Security Law. While prior research has focused on China's legal infrastructure and data localization mandates, this study examines the adaptive and geopolitical dimensions of its transnational data governance strategy - an area that remains underexplored. Drawing on a content analysis of central‐level legislation from 2016 to 2024, this study identifies shifting legislative priorities, governance mechanisms, and legal rationales. The findings show that China has developed a multi‐layered and increasingly flexible legal regime that balances sovereignty claims with selective openness, reflecting a pragmatic response to domestic needs and international pressures. This study expands the original scope of the "Beijing effect" by showing that China's influence on global data governance extends beyond the export of digital infrastructure to include dynamic legal adaptation and strategic regulatory innovation.