In this paper, I examine the evolving role of nation states in controlling and monitoring the global trade of intangible resources such as the user data, software, cloud and web storage, advertising, communication services, and access to communication networks. The research question of the project is the following: What are the nature and consequences of digital protectionism in the age of the Internet? Digital protectionism is a governmental policy that aims at taking measures to localize data by preventing it from being transferred internationally. Since the 2000s, protectionist policies have been adopted in a number of countries in order to decrease the dependence of nations on digital media corporations that collect, store, and commodify user data. I focus my attention on the global trade of intangible goods and aim at solving a policy puzzle where digital protectionism that allegedly favours the nations' digital industries causes, to varying degrees, suppression, censorship, and violation of the freedom of speech and other civil rights on the Internet.