President Biden is taking a stand against the unrestricted sale of sensitive American data to foreign countries, specifically targeting China, Russia, and four more nations. In a historic move, President Biden will issue an executive order on Wednesday that seeks to prevent personally identifying information from being used for malicious purposes such as blackmail, scams, or surveillance.

The executive order will task the Justice Department with crafting rules that restrict the sale of information about Americans’ locations, health, genetics, financial information, biometric data, and other sensitive data to China, Russia, Iran, North Korea, Cuba, Venezuela, and any entities linked to these countries. The White House highlighted the risk of this data being used for blackmail, particularly targeting individuals in the military, national security community, dissidents, journalists, and academics.

This move represents the United States’ first-ever broad prohibition on the sale of digital data to specific countries, acknowledging the growing concern over the exploitation of personal data in an era where data brokers collect vast amounts of information and sell it to marketers. Countries like China and Russia have been acquiring this data through corporate relationships, raising concerns about the potential misuse of this information for surveillance and other nefarious purposes.

The executive order is part of a broader digital cold war between the United States and China, with previous actions taken to limit Chinese hardware manufacturers’ access to essential supplies and force the sale of Chinese-owned apps like TikTok. This latest move underscores the ongoing efforts to protect sensitive technology and data from foreign adversaries.

Furthermore, the order reflects a global trend where countries are increasingly seeking to control data for their own protection and economic interests. Governments in Europe have mandated data storage within national borders for digital sovereignty, while Russia has implemented measures to block internet access entirely.

Despite the restrictions on the sale of sensitive data, officials emphasized that the United States remains committed to the free flow of data globally, with exemptions for essential activities like multinational companies handling payrolls. The executive order will initiate a rule-writing process at the Justice Department, allowing for public feedback on the proposed regulations.

In addition to restricting the sale of sensitive individual data to foreign entities, the administration is also considering a ban on the sale of genomics data and other measures to safeguard Americans’ privacy. Companies may be able to circumvent these restrictions by implementing privacy protection measures such as data encryption.

The timing of the executive order, just days before President Biden’s State of the Union address to Congress, indicates the importance of this issue for the administration. Despite these efforts, the threat of foreign entities accessing American data remains a concern, as highlighted by FBI Director Christopher A. Wray’s statement linking China to the breach of Equifax in 2017, exposing personal information of millions of Americans.

Overall, President Biden’s executive order represents a significant step towards protecting American data from exploitation and misuse by foreign actors, signaling a firm stance on safeguarding national security and individuals’ privacy in an increasingly interconnected world.