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Some significant advancements are taking place in artificial intelligence and data regulation across Asia.
On 28 Feb., Japan's Cabinet approved the Bill on the Promotion of Research, Development, and Utilization of Artificial Intelligence-Related Technologies, which is now expected to pass in Parliament. Interestingly, Japan's AI bill shares similarities with South Korea's AI Basic Law in terms of fundamental objectives, guiding principles, and government leadership. However, unlike South Korea's law, Japan's AI Bill does not define high-risk AI applications or impose specific penalties. This balanced approach was echoed by Japan's Science and Technology Policy Minister Minoru Kiuchi, who emphasized at a press conference that the bill avoids excessive regulations that could stifle innovation.
Meanwhile, China's AI sector continues to thrive. Businesses across industries — including energy, education, finance, e-commerce, pharmaceuticals, health care, manufacturing and more — are increasingly integrating DeepSeek into their operations. AI investments are surging, with major funding rounds reflecting strong market confidence. Just last week, a major Chinese AI startup ZhipuAI secured approximately USD1.4 billion from three private equity funds to develop general language models, aiming to drive AI-powered digital transformation and industrial upgrades.
AI is expected to remain a key focus in China through 2025 and beyond. On 5 March, China's National People's Congress' Two Sessions, the country's most significant annual policy summit, kicked off in Beijing, bringing together lawmakers and top advisors to shape economic and social policies for the year ahead. In his Government Work Report, Premier Li Qiang underscored innovation as a driving force behind the AI Plus initiative, further strengthening China's digital economy. The government is committed to integrating AI with its industrial and market strengths, expanding AI applications in connected renewable vehicles, smartphones, computers and robotics.
On the data front, China is taking steps to enhance the data governance framework. The government plans to improve data asset management, deepen data utilization, and further promote and regulate cross-border data transfers. Since the adoption of the March 2024 Regulations, China has eased cross-border data transfer requirements, reducing the regulatory burden on businesses. According to official data from the Cyberspace Administration of China, over 90% of applications have passed security assessments by central CAC, and more than 1,000 standard contractual clauses have been successfully filed with provincial CACs.
While these regulatory changes present significant opportunities, businesses must stay vigilant. The AI and data landscape in the APAC region is evolving rapidly, requiring companies to track developments and adapt compliance strategies accordingly. For instance, in China, new personal information compliance audit regulations will take effect 1 May and Chinese data regulators are anticipated to stay active in investigations and enforcement actions. Companies must stay informed about regulatory updates, assess business implications and proactively manage risks.
Barbara Li, CIPP/E, is a partner at Reed Smith.
This article originally appeared in the Asia-Pacific Dashboard Digest, a free weekly IAPP newsletter. Subscriptions to this and other IAPP newsletters can be found here.