It is an interesting situation, since it's basically putting companies in a situation where it's impossible not to break the law. The hosting country demands th

It is an interesting situation, since it's basically putting companies in a situation where it's impossible not to break the law. The hosting country demands that data be kept private while the country's home country demands that data be given up. What imagine will happen eventually (be it in the next couple years or next couple decades) is that agreements along the same lines as free trade agreements and extradition agreements will be made between countries. In exchange for the ability to get data from other countries under certain conditions, the US grants the ability for other countries to do the same. Probably these agreements would be made with other liberal democracies; I don't expect China or Russia to hand over data to the US nor vice versa.