For the United States, More Digital Privacy Would Mean More National Security

Claudia Biancotti (PIIE)

April 10, 2019 5:30 PM

The US government is stepping up efforts to counter China's ability to obtain private data of American citizens through the acquisition of information technology companies. In January 2018, for example, the Chinese technology company Kunlun completed the acquisition of California-based Grindr, a gay dating app. The acquisition was reversed in March 2019 by the Committee on Foreign Investment in the United States (CFIUS), an interagency panel with the power to block foreign deals adversely affecting US national security. According to some experts, the aim of CFIUS was to prevent the Chinese government from exploiting sensitive data on sexual behavior to blackmail US citizens. A few weeks later, CFIUS forced a different Chinese company to divest its stake in an app that collects health information, confirming that concerns around personal data are becoming more significant in the review process.

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