Data Development

A document jointly released by the Central Committee of the Communist Party of China and the State Council on December 19, 2022, details 20 key measures to build basic systems for data management and better utilize data resources.

As the foundation for digitization, networking and intelligent operations, data is an increasingly vital resource for both business and government. Production, distribution, circulation, consumption and social service management now all depend on big data, which is transforming the economy, society and governance.

The volume of China’s data and the ways it is being used are increasing rapidly, so the construction of basic systems for data management is becoming increasingly important for the country’s security and overall development.

Under construction are systems managing data for property rights, circulation and trading, income distribution and governance.

Specifically, the establishment of a data property rights system will protect rights and ensure rules-compliant use of data. China is to set up a comprehensive and efficient circulation and trading system for data factors and a data factors market system fitting China’s institutional advantages.

Efforts need to be made to set up an efficient and fair data factor income distribution system, so that the creators of data value will benefit most, with public interests and vulnerable groups also able to enjoy the fruits. There will be a safe, controllable and flexible system for governance data management that is based on collaboration between the government, businesses and society.

The document details China’s aim to become increasingly involved in cooperation on the setting of international standards, institutional arrangements and equitable rules for data management and sharing between nations.

The ability for data to be repeatedly replicated with near-zero cost, poses new challenges to traditional property rights, circulation, income distribution and governance systems. China is already embarking on the exploration of the capitalization of data, but efforts are being held back by vague data property rights, pricing and distribution systems. Of course, this is a headache that also plagues the rest of the world. The document aims to encourage the growing capitalization of data, and thus stimulate the potential of data to empower the digital economy.

As detailed proposals for the Outline of the 14th Five-Year Plan (2021-25) show, China is embracing the digital era, unleashing the potential of big data, building its strength in cyberspace, accelerating the development of a digital economy, a digital society and a digital government, and modernizing its economy, society and governance through digital transformation. Emerging digital industries, like artificial intelligence, big data, blockchain, cloud computing and cybersecurity, will be strengthened, and the quality of industries such as communications equipment, core electronic components, and key software will be improved. Efforts will be made to develop new applications and industrial ecosystems for 5G technology, and pilot and demonstration projects will be undertaken in smart transportation, logistics, energy, medical care and other key fields.

All of these depend on the support of data. As digital technologies permeate all sectors of social life, China and the world at large need to establish basic systems for data, so that data will be used in accordance with common standards, principles and rules.

Currently, disputes over data property rights, distribution of data assets and the use of data abound. The official document will undoubtedly help ease disputes and promote the sound and stable development of digital industries.