Abstract: In the digital era, data is regarded as an important strategic resource, and with the continuous accumulation of data and the continuous development of technology, the risk and challenge of cross-border data flow are also increasing. How to develop regulatory policies to protect data security and privacy rights has become a global issue. In this paper, a model of the game between the government and enterprises is constructed for theoretical analysis, and the conclusion is verified by numerical simulation. The results show that in the long run, the government is bound to adopt the post-accountability regulation strategy. From the perspective of enterprises, when the total amount of data is small, the industry with a low proportion of prohibited cross-border data will stabilize in the state of compliance operation, while the industry with a high proportion of prohibited cross-border data will stabilize in the state of violation operation. When the overall data volume is large, some industries with a high proportion of prohibited cross-border data will also enter the compliant operation state, and only industries with a specific intermediate proportion of prohibited cross-border data will continue to stabilize in the illegal operation state. In addition, prohibiting the premium growth of cross-border data value will drive more industries into the state of illegal operations. The conclusion of this paper helps clarify the basic logic of the change of business strategy in the cross-border data business, discover the evolution law of the policy implementation process, and provide theoretical basis and reference for the formulation of regulatory policies on cross-border data flow in China.

Key words: data transmission, cross-border flow, data security, data governance, evolutionary game