The Conflict Balance Model between Sovereignty and National Treatment in the Digital Age

Yuchen Han

International Journal of Law, Policy & Society, 2025, vol. 1, issue 1, 18-26

Abstract: With the advent of the era of data sovereignty, the traditional principle of national treatment (NT) in international investment law faces significant challenges. Digital sovereignty emphasizes a state's absolute control over cross-border data flows and technical standards, prompting countries to impose trade barriers such as data localization and unfair digital taxes, which conflict with the principle of non-discrimination. This paper focuses on the dynamic balance between data sovereignty and national treatment, analyzing the root causes of their conflict, including the tension between sovereignty and open markets and the ambiguity of exception clauses. Measures strengthening digital sovereignty - such as fragmented technical standards and digital services taxes - exacerbate hidden discrimination against foreign investors, posing key dilemmas for the implementation of NT in the digital era. This study aims to explore institutional innovations that reconcile controllable market access with security interests, contributing to the reform of international investment law.

Keywords: data sovereignty; national treatment; digital taxation; international investment law (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:dba:ijlpsa:v:1:y:2025:i:1:p:18-26

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