Are data privacy and cybersecurity issues becoming new 'frictions' in globalization?

Response: Undoubtedly, yes, and this "friction" is intensifying, even reshaping the rules of globalization.

Let's break down the issue to make it clearer.

The Globalization of the Past: An Ever-Smoother Freeway

Imagine 20 years ago, when people talked about "the world is flat" – what was globalization like then?

Flow of Goods: A shipping container from China could reach the US facing relatively few barriers beyond tariffs and transportation costs. The focus was on dismantling trade barriers to make the movement of goods faster and cheaper.
Flow of Capital: Wall Street funds could easily invest in emerging Asian markets, and vice versa. The financial system was actively pursuing global interconnectivity.
Flow of People: Studying, travelling, and working abroad, while requiring visas, saw a clear trend towards encouraging people-to-people exchanges.

It was like a freeway; everyone worked to make the road smoother, remove toll booths, and enable faster traffic.

Globalization Today: Data Becomes the Most Important "Goods" on the Freeway

Now, the primary vehicle of globalization has changed. It's no longer just containers and dollars; it's data.

Buy something on Amazon, and your shopping preference data moves across borders.
Scroll through TikTok, and your viewing data, likes, are transmitted to servers.
A multinational corporation holds a Zoom meeting, and the meeting content (data) travels between global data centers.

Data has become the new oil, the new gold. The problem? Data as "goods" is unique. Unlike a piece of clothing that's simply shipped elsewhere, it contains personal privacy, relates to corporate trade secrets, and even touches upon a nation's economic and security lifelines.

Where Exactly Does This "Friction" Manifest?

As data becomes the most important "goods," the once-smooth freeway now encounters various "speed bumps," "checkpoints," and "divergent traffic rules." This is the source of friction:

1. Divergent Regulations: Like Incompatible Rail Gauges

Imagine globalization as building a global railway. Now, each country lays tracks to its own specifications.

The EU Model (GDPR): "Citizens' data belongs exclusively to them and is inviolable!" Consent is mandatory for data use, and individuals have the right to erasure. The emphasis is on individual rights.
The US Model: Relies more on market forces and corporate self-regulation, with lighter government oversight. The emphasis is on business freedom and innovation.
The China Model (Cybersecurity Law, Data Security Law): "Data is a vital strategic resource tied to national security." Important and sensitive data cannot arbitrarily leave the country. The emphasis is on national sovereignty and security.

These three regulatory frameworks are fundamentally different. A multinational corporation like Apple or Volkswagen must simultaneously protect user privacy in Europe, foster innovation under US rules, and comply with data localization and export rules in China. It’s like a train needing a complete wheel change every time it crosses a border – extremely costly and cumbersome. This is massive "friction".

2. Trust Deficit and Mutual Suspicion

Data is intangible yet powerful, breeding distrust between nations.

The US worries: Could vast amounts of US user data stored on a Chinese company’s servers (e.g., TikTok) be used against its interests?
Conversely, other nations worry: If their critical data relies on cloud services from US tech giants (Google, Microsoft, Amazon), isn't their economic lifeblood in foreign hands? The Snowden incident deepened these concerns.

This suspicion transforms purely commercial and technical issues into geopolitical ones. Bans, reviews, sanctions… are the sparks created by this "friction."

3. "Data Sovereignty": The New Territorial Concept

Sovereignty used to mean territory, airspace, and territorial waters. Now, a new term emerges: "data sovereignty."

It asserts that data generated within a country's borders falls under its jurisdiction, akin to mineral resources found on its land.

This fundamentally alters the internet's original vision of being "free, open, and borderless." The internet is fracturing from a "global village" into walled-off "data zones." These walls are the quintessential "friction."

4. Economic Costs: The "Speed Bumps" for Business Development

For businesses, this friction translates into tangible costs.

Compliance Costs: Needing teams of lawyers and experts to navigate complex international regulations and avoid violations.
Technical Costs: Having to build separate data centers in Europe, China, the US, etc., to meet data localization requirements – often prohibitively expensive for startups and SMEs.
Market Access Costs: Entering a new market is no longer just about product quality; it requires passing rigorous data security reviews, a process that can be lengthy and uncertain.

Conclusion: The World is No Longer "Flat"; It's "Bumpy"

So, back to your question: There is no doubt that data privacy and cybersecurity are becoming the new forms of "friction" in globalization.

They haven't halted globalization, but they have profoundly reshaped its form. The world is no longer being flattened by bulldozers, as Thomas Friedman described.

Today's world resembles complex terrain: with plains, but also mountains (data barriers), rivers (data flow restrictions), and passes (security checks). To navigate this landscape, businesses and individuals need a more robust "off-road vehicle," an accurate map, and a guide experienced in all these "road conditions."

This friction will remain a core, complex topic in international relations and the global economy for a long time to come.