The new year has barely started, and yet the privacy and tech world is already in full-blown chaos. From TikTok bans and Trump’s policy shifts to a sudden Chinese AI breakthrough - 2025 is shaping up to be a year of digital power struggles.
Let’s break it all down.
On January 19 2025, TikTok was officially banned in the U.S. But just one day later, President Trump stepped in, signing an executive order that paused the law for 75 days, giving the app a temporary lifeline.
Trump says he’s negotiating TikTok’s future, possibly involving a U.S. company - Microsoft, maybe?
Millions of American users are already moving to alternative Chinese apps like Xiaohongshu (RedNote) in case the ban sticks.
The bigger issue? Banning TikTok doesn’t solve the real problem: massive data transfers to China. As long as U.S. users continue flocking to Chinese-owned platforms, their data remains at risk - whether it’s TikTok, RedNote, or the next viral app (see below).
While the U.S. is focused on TikTok, Europe is widening its scope. Privacy group NOYB (led by Max Schrems) just filed a legal complaint against several major Chinese platforms for allegedly violating EU data protection laws (GDPR).
The accused companies: TikTok, Shein, AliExpress, Temu, Xiaomi, WeChat.
The allegation? These platforms are illegally sending European user data to China, where privacy laws are significantly weaker than GDPR protections.
If the EU enforces strict penalties, Chinese tech giants may have to cut off European users or completely rethink their data handling practices.
The AI battle between the U.S. and China just escalated. A previously unknown Chinese company, DeepSeek, just:
Launched an AI assistant that hit No.1 on Apple’s App Store.
Developed AI models outperforming top U.S. rivals like Meta & OpenAI - while using fewer resources.
This sudden success has blindsided U.S. tech giants, who assumed they had a comfortable lead in AI development. Now, there’s panic in Silicon Valley as China proves it can develop cutting-edge AI faster and cheaper than the U.S.
Even before DeepSeek’s rise, Trump had already begun rolling back Biden-era AI regulations.
Trump administration claims previous restrictions slowed down innovation.
Critics warn that removing oversight could weaken security and privacy protections.
The dilemma? Will the U.S. prioritize AI dominance over user safety?
The Trump administration just fired all three Democrats on the Privacy and Civil Liberties Oversight Board (PCLOB), effectively shutting down its ability to function.
This board is the central watchdog for U.S. mass surveillance. Without it, there is no independent oversight on how the U.S. government collects and handles personal data - both for Americans and foreign citizens.
Impact on the EU-US Data Privacy Framework:
The EU-US Data Privacy Framework (the system that allows U.S. companies to legally handle EU user data) is already on thin ice due to past legal challenges. Now, with even fewer privacy safeguards in place, the entire framework is at risk of being ruled illegal.
This means that thousands of EU businesses that rely on U.S. tech giants like Google, Microsoft, Amazon, and others may face major restrictions on transatlantic data flows.
Privacy advocates warn this could pave the way for Schrems III - another major legal battle over EU-US data transfers.
With data transfers becoming increasingly complex, we’re inviting you to a free Masterclass with Willem Balfoort, Head of Stripe’s International Privacy team.
Join us for an insightful session on cross-border data transfers in the APAC region, including India.
Register for Session 1 of Willem's masterclass series.
Privacy, data security, and AI dominance are no longer just tech issues—they’re major geopolitical battles with global consequences.
Decisions made in the U.S., EU, and China this year will shape the future of digital privacy, surveillance, and AI power.
One thing is clear - 2025 is going to be anything but calm.
Stay tuned!
.png)