On August 27, 2024, the EU and China launched the Cross-Border Data Flow Communication Mechanism, a new platform aimed at addressing issues related to the transfer of non-personal data between the two regions. The mechanism’s primary goal is to facilitate the smooth transfer of data for European businesses operating in China, ensuring compliance with Chinese data regulations. This is particularly important for sectors like finance, insurance, pharmaceuticals, automotive, and ICT, where data flows are crucial for operations and research and development. European businesses in China have expressed concerns over the restrictive application of China’s 2022 Measures for Data Export Security Assessment. These issues have contributed to declining confidence among European investors in China.