China established National Data Bureau (NDB), which aims to collaborate with relevant departments with the intention of exploring the implementations of a “Data Element X” initiative.
China established National Data Bureau (NDB), which aims to collaborate with relevant departments with the intention of exploring the implementations of a “Data Element X” initiative. An official stated that the primary focus would be to unleash multiplier effects of data across a range of scenarios. In addition, the NDB would focus on unleashing the transformation of China’s advantage in basic data resources into new economic strengths.
The Importance of the “Data Element X” Initiative:
The plan was introduced by NDB Chief Liu Liehong at the Global Data Ecosystem Conference 2023, held in Shanghai. Liehong explained that the data is non-competitive and low-cost replication that manages to increase returns at scale. It can generate multiplier effects of varying degrees, when applied to different entities as well as combined with various elements.
The NDB’s chief explained on the supply and demand front that extensive efforts will be made in several key areas, such as commercial circulation, intelligent manufacturing, transportation and logistics, healthcare, and financial services. These efforts would be made with the intent of strengthening the traction of demand, surpass circulation barriers, and improve the quality of supply.
According to Liu, it is a possibility to enhance the efficiency of various elements, break through output boundaries, identify the optimal solution for resource allocation, create new industries and business models, and achieve multiplier effect that drives economic development by accelerating the development and utilization of data across industries.
Liu further said that the data industry in the country has been rapidly developing in recent years. The number of data-driven businesses surged from approximately 110,000 to more than a million in the last decade. The data serves as the primary instrument in the operations of data-driven businesses, which are economic entities in the country.
The Shanghai Data Exchange was established two years ago and has more than 1700 data products listed, amounting to the total transactions of about one billion yuan. To serve the entire industry and regulate the processes of data element circulation market, a data-trading chain was officially launched in the forum, which will provide fundamental and value-added data trading assurance services, along with data asset financial services.
The country’s top economic planner, the National Development and Reform Commission, administers the NDB, which was inaugurated on 25th October. The primary responsibilities of the NDB include advancing the development of data-related fundamental institutions, sharing, development and application of data resources, coordinating the integration and succeed in the planning and building of a digital China along with a digital society, a digital economy, and other such measures.
Experts’ Thoughts on the “Data Element X” Initiative:
Wang Peng, an Associate Researcher from the Beijing Academy of Social Sciences, had given a statement to the Global Times that the data exhibits synergistic effects that can realize greater value and even address issues that may be beyond the capability of a single dataset through the integration of different datasets. He added by citing the example of large language models, that the data possesses reusability; the more the data is being used, the more its value increases.
According to Wang, the data elements can be instrumental if it is integrated into the real economy. Along with the transformation and upgrading of the economy, it also can positively impact people’s lives as well as help in the construction of a digital China. Generating dynamic effects in various scenarios, including logistics, transportation, and finance.
Since the scale of data transactions in China had reached 70 billion yuan ($9.79 billion) in 2022, Wang Xiaoyun, an Academician of the Chinese Academy of Sciences, had given an estimate that the market has the potential of exceeding 220 billion yuan by 2025.