Data security concerns are driving multinational corporations to adopt stringent internal policies. For example, BlackRock has prohibited employees from bringing corporate devices into China and issues temporary hardware without sensitive information. Similar measures have been reported by Apple and Microsoft, which have segmented networks and restricted cross-border data flows to mitigate exposure. Multinational companies have taken such measures due to regulatory requirements, fears of compelled data disclosure, and intellectual property risks.
To cope with these risks, foreign companies have adopted multi-layered strategies. These include limiting employee travel to China, particularly for non-essential trips; restricting the use of corporate devices within the country; issuing China-specific laptops that exclude sensitive data; and seeking explicit legal assurances from local partners regarding data protection. Some firms have also begun reassessing their long-term presence by exploring selective market disengagement or restructuring operations to reduce vulnerability to regulatory actions.
Triggers that could exacerbate these risks include further deterioration of US-China…
