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Leaked U.S. Cable Orders Diplomats to Counter Foreign Data-Localization Drives

The disclosure signals a more forceful U.S. campaign for open cross-border data flows in response to stricter European privacy rules.

Overview

  • An internal State Department cable dated February 18 and signed by Secretary of State Marco Rubio instructs diplomats to oppose data sovereignty measures and track proposals that restrict cross-border data transfers.
  • The directive urges envoys to promote the Global Cross-Border Privacy Rules Forum as the preferred framework for trusted international data flows.
  • Talking points in the cable argue that localization mandates would disrupt global data movement, raise costs and cybersecurity risks, and curb AI and cloud services while enabling government overreach and censorship.
  • The memo cites the EU’s GDPR as imposing unnecessarily burdensome processing and transfer rules and criticizes China for pairing infrastructure projects with restrictive data policies to expand influence and obtain data for surveillance and leverage.
  • Reuters reported the cable's contents on February 25, and the State Department did not provide an on-the-record comment; experts say the move reflects a more confrontational U.S. stance after earlier efforts targeting the EU’s Digital Services Act and a planned portal to bypass certain online restrictions.