Beijing wants a market for data trading: the question is how?
- The plan does not provide details on the ownership of data or what kind of data can be traded
- Draft data regulations unveiled by Shenzhen authorities last year sparked controversy
China will speed up the building of a market for data, dubbed the new oil of the digital economy, so that it can be priced and traded like regular commodities, according to a detailed plan that lays out how the country wants to build a modern market system of “high standards”, released by Beijing on Sunday evening.
While the plan does not specify who owns the data, what kind of data can be traded or what the trading mechanism will be like, last year Beijing listed data as a new production factor, along with land, labour, capital and technology.
After the solicitation of opinion ended in August, the draft was submitted to Shenzhen’s legislature for approval but it remains under discussion.
Under Sunday’s new action plan, issued by the ruling Communist Party and the State Council – China’s cabinet, authorities will study ways to accelerate the formation of a data market and create norms on data property rights, trading, transmission and security.
Authorities will also draw up a list of responsibilities to strengthen the sharing and exchange of data among regions and government departments. China is expected to actively participate in the formulation of international rules and standards on data, according to the plan.
Beijing’s exploration in making data a new tradeable asset can have far-reaching implications for China’s technology companies, which have accumulated huge volumes of user data based on which business decisions are made and new services are developed.