US Companies Comb China Data Protocols as Regulators Crack Down

A multipronged effort from federal and state enforcers to protect US consumers’ data from China and other foreign powers is forcing US companies that transfer data abroad to reexamine their data flows.

Despite limited authority to go after foreign data transfers, states have stepped up to fill gaps left by a lack of enforcement from federal agencies. As of March, states have issued more than a dozen lawsuits and investigations citing Chinese data transfers.

The Department of Justice sent the first warning shot last July when it started enforcing a rule regulating outbound transfers of sensitive personal data from US ...