According to Reuters the American Chamber of Commerce thinks that damage to business growth will outweigh security considerations.
Worse, the body thinks China GDP will drop by 1.1 percent if the government goes ahead and implements such laws. Other large markets like Germany, Russia and Brazil are also thinking about implementing such schemes.
That’s particularly so since whistleblower Edward Snowden revealed the depth and extent of snooping by the National Security Agency (NSA) and others.
Google doesn’t like the Chinese ideas either – but then it’s had a strained relationship with the government for years.
But not every technology company is up in arms about the proposals. Microsoft and Apple both appear to be happy to host data in data centres on mainland China.
The Chinese government itself has said that the proposed regulations are no big deal, and conform with generally agreed security standards.