context: The NDA (National Data Administration) was set up in 2023 to lead data infrastructure development and oversee digital transformation according to the 'Digital China’ blueprint. Defining data as a factor of production was a breakthrough. Since its inception, the NDA has introduced over 20 policy initiatives to standardize data registration, trading and pricing mechanisms.
The PRC is set to launch a new central SOE (state-owned enterprise), the National Data Group, marking a key milestone in the country’s push for data marketisation reforms, reports Economic Observer.
Sources close to the initiative confirm that the State-owned Assets Supervision and Administration Commission is leading the effort to integrate and optimise national data resources, enabling more efficient allocation and deeper application of data as a strategic asset.
As data emerges as the fifth production factor, alongside land, labour, capital and technology, its fragmentation and decentralised ownership have hindered its full economic potential, notes the article. The new National Data Group will aim to consolidate, operate and commercialise national-level data assets across key industries including energy, transportation, finance, healthcare and manufacturing.
Sources suggest the new SOE will not simply aggregate resources but will adopt a market-oriented approach, exploring commercial data operations while ensuring data security and privacy through advanced AI, blockchain and cloud computing technologies.
Before this national initiative, several provinces established data companies to experiment with data resource commercialisation. In 2018, Guizhou launched the PRC’s first provincial data group, serving as a pilot for data governance and market operations. Beijing, Shanghai, Guangdong and Zhejiang followed suit, each facing challenges in data standardisation, integration and privacy concerns.
A mid-China province’s data group struggled to merge data from different government departments due to inconsistent formats and unclear ownership. Similarly, a regional data initiative attempting to integrate municipal transport and bike-sharing data encountered compatibility and privacy compliance issues.
With an estimated market size of C¥500 bn to C¥1 tn during the 14th 5-year plan, the National Data Group will be instrumental in accelerating data commercialisation, breaking data silos and enhancing the PRC’s global competitiveness in digital economies, notes the article.