The Biden administration is preparing to establish a new licensing program for companies as part of its crackdown on bulk sales and transfers of sensitive personal data to China and other countries it sees as national security risks…

The program may address private sector concerns that complying with the new restrictions could prove burdensome and may provide a “release valve” for emerging technologies, said Brandon Pugh, director of cybersecurity and emerging threats at the R Street Institute.

“You don’t want to unduly limit business and data flows either, and I think the rules have the potential to strike that balance if done right,” Pugh said. “Licensing is a way to provide some flexibility to businesses moving forward…”

Companies are likely to weigh in during the comment process on whether the proposed thresholds make sense, said Pugh.