China to focus on finance, tech and farms in 12-sector digital push for real economy by 2026

National Data Administration releases three-year action plan for digital resources to drive growth as China seeks to outpace US and other rivals
Aims set out include more than 20 per cent annual growth for the data industry and the doubling of data transactions by 2026

China technology

Jane Caiin Beijing

Published: 7:00pm, 29 Dec 2023

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Finance, technology and agriculture are among 12 areas earmarked by China’s newly formed data agency to spearhead digitalisation as an economic driver.

The National Data Administration (NDA)’s three-year action plan for digital resources follows a week-long consultation period that ended last Friday.

Aims set out in the draft 2024-2026 plan released for public consultation included more than 20 per cent annual growth for the data industry, and the doubling of data transactions by 2026.

By 2026, China will have more than 300 “typical” data applications, a few data application demonstration zones and an array of “innovative and influential” data providers and third-party agencies, according to the draft plan. The final document has yet to be released.

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“We aim to fully utilise the value of data and provide solid support to high quality [economic and social] development,” NDA deputy head Shen Zhulin said in Beijing on Friday.

“We selected 12 industries and sectors after considering their foundations, application scenarios and different demands,” Shen said. “We also consulted other government departments, experts and companies, and will adjust the plan in a timely manner to reflect feedback from society.”

The 12 areas in focus are industrial manufacturing, modern agriculture, trade, transport, financial services, technological innovation, culture and tourism, medical care and health, emergency management, meteorological services, smart city governance, and green and low-carbon economy.

The digitalisation push will include smart manufacturing to improve industrial and regional synergy, integration of agricultural production, and the sharing of tax and industry data with financial institutions for better credit checks by banks. Also, scientific and research data will be opened up to boost technological innovation and large AI models, such as those that power prominent chatbots like OpenAI’s ChatGPT.

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The NDA was inaugurated in October amid a flurry of party and government body reshuffles since March, as Beijing seeks to outpace the United States and other Western rivals in setting norms and standards in artificial intelligence and the digital economy. The digital economy has taken on added significance as Beijing seeks new ways to rise up the industrial value chain and drive growth while navigating US-led technology chokepoints.

The NDA and planning body the National Development and Reform Commission recently jointly released a plan to expand the application of digital technology to support the development of China’s real economy.

The NDA, which takes over many duties of the Cyberspace Administration of China, the country’s top internet watchdog, has been tasked with driving digital development by creating blueprints, introducing unified standards for data sharing, and supporting the digitalisation of public services.

China’s digital economy was worth an estimated 50.2 trillion yuan (US$7.07 trillion) last year, accounting for 41.5 per cent of the national GDP. But rapid growth in the sector has brought management and regulatory challenges. For instance, about 15 government organisations are responsible for data regulation and governance, resulting in bureaucratic red tape and inefficiency.