DIGDAL News

By ofweek

How to establish a national data bureau and create a market for data?.

05 Apr, 2023

Preface:.

The most practical contradiction facing data circulation is the issue of data ownership and data security. The issue of data ownership and security is a major public interest issue that cannot be solved by any institution or enterprise.

In recent years, the country has indeed elevated the digital economy to a very high level, and related actions are becoming more practical and specific.

Establishing a national data bureau can better solve the urgent problems faced by the development and utilization of data element resources at the national level.

Image source | Network.

The data element market needs more comprehensive protection.

In 2021, the market size of data elements in China was approximately 81.5 billion yuan. It is expected that the compound growth rate of market size will exceed 25% during the 14th Five Year Plan period, and the scale is expected to approach 200 billion yuan by 2025.

The storage, analysis, and processing of data elements have a market size of over 15 billion yuan, laying a solid foundation for the resource utilization of data elements;.

The industrial scale of data trading and data services has reached 12 billion yuan and 8.5 billion yuan respectively.

In many industries, some enterprises and research institutions have considered the issue of data alliances, but in practical operation, such alliances are extremely difficult to promote.

For example, training large models requires a large amount of data, which brings a huge workload to data cleaning, filtering, and standardization.

These data alliances lack administrative and law enforcement powers, making it difficult to effectively promote data circulation.

Even big data exchanges established in the past few years are facing awkward situations.

However, this greatly increases the cost of entry transactions for enterprises, coupled with imperfect regulatory mechanisms, resulting in enterprises being hesitant to enter for transactions.

In the past, the supervision of data elements was carried out by different levels and departments.

From a regulatory perspective, there are both national level laws and regulations as well as local level regulatory regulations;.

From a departmental perspective, it is the responsibility of multiple institutions, including the Cyberspace Administration, the Ministry of Industry and Information Technology, the Industry and Commerce Market, and various regulatory departments such as radio and television.

AI data management has a specialized organization.

The value of data lies in China Unicom, which has a scale effect of unlimited supply. The more demand, the greater the value, and data also has network value. 1+1>2, the richer the data, the higher its value.

To generate value from data, it is necessary to gather the data to form big data, which can reflect some structured features and maximize the mining of information.

The most important reason is that 80% of China's data is in the hands of the government and relevant state-owned enterprises, lying on the servers of these departments.

But the current situation of data management in our country is that a large amount of government informationization work has been done, resulting in a large amount of data, but it is very scattered and fragmented.

In March of this year, in accordance with the proposal of the State Council to review the State Council's institutional reform plan, the National Data Bureau was established.

The National Data Administration will be responsible for coordinating the construction of data infrastructure, coordinating the integration, sharing, and development of data resources, and promoting the planning and construction of digital China, digital economy, and digital society. It will be managed by the National Development and Reform Commission.

The establishment of the National Data Bureau will be more conducive to mobilizing resources from all parties to comprehensively promote the construction of Digital China and the development of the digital economy.

Looking back many years later, the establishment of the National Data Administration may be a major event that changed our lives, with the significance of the Environmental Protection Administration becoming the Ministry of Environmental Protection in 2008.

Organizational restructuring sends important signals.

① Digital transformation has become an important driving force for development in the new situation: Against the backdrop of the decoupling between China and the United States, the importance of digital transformation in China's rise has become more prominent.

Since the US government imposed trade sanctions and technology blockades on China, China's digital transformation process has been forced to accelerate to compensate for technological and market deficiencies and enhance economic competitiveness.

② Data has become a core element of a country's digital transformation: data is like water, with value along the way. Its value is not only reflected in data elements, but also in business scenarios, organizational processes, and resource allocation.

③ Data is the best means to break down process and organizational barriers: data is an important element and cornerstone of the construction of Digital China, and it plays an important role in enhancing the digital economy, digital governance, digital innovation, public safety, and social trust.

④ The openness and sharing of government data: According to the plan released this time, the National Data Administration will coordinate the development, utilization, and sharing of important national information resources, promote cross industry and cross departmental interconnection of information resources, and other responsibilities.

From a holistic perspective, there are five major causes.

① Necessity: Relevant big data bureaus have been established in various provinces and cities. Although the functions of big data bureaus themselves are clear, the data coordination at the national level is not very clear.

② Specialty: Essentially, data has its own uniqueness compared to other tangible goods. Therefore, specialized institutions are needed for unified management, which once again confirms the necessity of establishing a national data bureau.

③ Urgency: The digital economy accounts for nearly 40% of the national economy, and it is an urgent task to break through the relevant barriers in the data field in the next step.

④ Unification: In recent years, the State Council has also been promoting the national unified large market. The uniformity of the data market also requires relevant institutions to carry out unified planning, management, supervision, and implementation to ensure the protection of the large market.

⑤ Professionalism: From the perspective of the professionalism of the data itself, it requires a more professional organization for unified management. From the perspective of the functions related to the establishment of the National Data Bureau, it reflects a clear guarantee of professionalism.

The future significance of the National Data Bureau.

① Leading national data governance: The effective mining and utilization of data as a production factor will have greater financial space compared to land, as well as limited and tangible resources compared to land.

② Changing the pattern of water management in Kowloon: After the establishment of the National Data Bureau, various resources can be mobilized to comprehensively promote Digital China, which is conducive to the development of various work.

③ Accelerating the supply of data systems: The particularity of data production factors determines that these regulations must be formulated by professional organizations, and the establishment of the National Data Bureau will accelerate this process.

④ Coordinating the construction of Digital China: With the establishment of the National Data Bureau, it will play a supportive role in the rapid development of data element markets such as data rights confirmation, trading, and circulation. The pace of digital China construction and data element industrialization is expected to accelerate in the future.

⑤ Balancing development and security: The new National Data Administration, which has been incorporated into the National Development and Reform Commission, currently does not assign data security management responsibilities, meaning that data is within the framework of development rather than regulatory frameworks.

⑥ Boosting the data circulation ecosystem: The National Data Administration coordinates and promotes the construction of data infrastructure systems, which include data rights confirmation, circulation, trading, equity distribution, security and compliance. What is needed now is standardization to address further development issues.

In the era of unlimited supply, enterprises need to see clearly.

① The growth of enterprises has shifted from supply constraints to market constraints. This is a fundamental change.

② The difference between simple labor and smart labor will continue to widen in the future. For all businesses, consumer dividends and market dividends may become more important.

③ Smart costs such as technology, creativity, IP, business models, and big data will become more important production factors than machinery and equipment.

End:.

The business and operational models of a large number of governments, enterprises, and universities are being integrated with digital technology, which will trigger high-frequency, large-scale, and normalized data flow.

In recent government documents and summaries, the importance and status of data in China have also been clarified, and the establishment of the National Big Data Bureau has officially put data-driven national level digital transformation on the agenda.