Abstract:  In October 2023, the US withdrew its proposals on cross-border data flows at the World Trade Organization (WTO), reversing its long-held position on binding commitments against data localization. Concurrently, it has orchestrated the creation of several informal data governance initiatives, including the Indo-Pacific Economic Framework for Prosperity, which are all characterized by fluid commitments on data flows. This article demonstrates that the US’ turn toward informal data governance is influenced considerably by geoeconomic statecraft. Confronted with the prospect of China leveraging global data flows to undermine American interests, both in terms of national security and economic competitiveness, the US executive has sought to restrict outbound data flows. In parallel, it has developed informal, like-minded coalitions to promote norms around “trusted data flows,” that similarly restrict data collection by Chinese actors globally. Having withdrawn from formal WTO discussions on cross-border data, its informal initiatives give the US ample regulatory space to implement coercive domestic measures against Chinese actors. Informal initiatives simultaneously allow the US to develop norm-setting coalitions with states that may otherwise be wary of binding commitments on restrictive data flows. Drawing on an analysis of seven international data governance initiatives, alongside US domestic policies and official statements, we trace the US’ turn toward informality to its geoeconomic considerations. We contribute to theoretical debates on the evolution and shift in geoeconomic statecraft, particularly the shift away from formal sanctions-based regimes to informal agreements, as well as to the empirical literature on international cross-border data governance.

Keywords:  cross‐border data flows; geoeconomics; informality; United States

Published:   24 September 2025

Issue:   Vol 13 (2025): The Geopolitics of Transnational Data Governance (In Progress)