Paradigm Conflict and Governance Reconstruction: The Spillover Effect of US-China Data Rivalry

The intensifying data governance rivalry between the United States (US) and the People’s Republic of China (PRC) represents a critical extension of geopolitical tensions into the digital realm, carrying profound implications for global trade and economic stability. This research analyses how data transfer restrictions, justified by national security imperatives, exacerbate the fragmentation of the global digital economy and create unprecedented compliance challenges for transnational corporations. In the absence of clear international guidelines regarding security and public policy exceptions in the digital trade context, a regulatory vacuum has emerged, enabling unilateralism and undermining multilateral cooperation. This paper illustrates the tangible consequences of confronted data governance through comparative legal analysis, empirical policy evaluation, and the TikTok Ban as a pivotal case study. The study further explores the ‘spillover effects’ on third-party regions, where nations are forced to engage in strategic hedging between competing technopolitical spheres. To address these systemic risks, the paper proposes a normative framework for governance reconstruction, operating across four integrated levels: (1) national measures regulated, (2) international normative consensus, (3) multilateral institutional innovation, and (4) private-sector technical adaptation.