China has recently unveiled an ambitious five-year action plan to establish over 100 “trusted data spaces” by 2028. This initiative is part of a broader strategy to achieve dominance in international data governance and secure a unified national data market. The concept of these data spaces revolves around secure and efficient data sharing, achieved through consensus-based rules and government oversight. This move is embedded within broader goals of developing a robust data ecosystem, advancing digital economy growth, and cementing China’s control over data. The plan emphasizes the creation of infrastructures where data can be circulated and utilized securely among various stakeholders, managed by operators who ensure compliance with relevant regulations.
The Vision Behind Trusted Data Spaces
The core intention of the plan is establishing infrastructures where data can be circulated and utilized securely and efficiently among various stakeholders. Operators of these spaces will manage data for providers and users, offering services such as data processing, hosting, and matching supply to demand while ensuring compliance with relevant regulations. This strategic move highlights three essential capabilities needed for developing trusted data spaces: trusted control, resource interaction, and value co-creation.
China’s data production landscape has seen exponential growth, with data volumes increasing from 8 zettabytes in 2022 to nearly 33 zettabytes in 2023, accounting for 26 percent of global data creation. However, despite this significant growth, challenges including low data usage, inefficient transactions, and difficulties in establishing ownership, pricing data, and building mutual trust have persisted. These issues are what the new action plan aims to address through blockchain and other secure technologies, and by achieving a unified data market across China. By targeting these challenges, China hopes to foster a data landscape that is not only expansive but also efficient and trustworthy, benefiting a wide range of stakeholders.
Types of Trusted Data Spaces
The plan categorizes trusted data spaces into several types, including enterprise spaces, key industry spaces, city spaces, individual spaces, and cross-border exchange spaces. The National Data Administration (NDA) intends to foster an integrated data ecosystem that promotes secure cross-border data trade. This will be supported through financial backing, talent cultivation, and the establishment of benchmarks. As part of this effort, the NDA is mobilizing resources to ensure that each category of data space is equipped to handle specific challenges and requirements, facilitating seamless data exchange.
Chinese President Xi Jinping has likened data to oil, recognizing it as a critical resource and a new driving force for economic development. The PRC’s data industry is expected to grow annually by over 20 percent by 2026, with support from initiatives by provincial governments such as Anhui, Fujian, and Zhejiang. The development of these data spaces is seen as crucial for driving this expected growth, as secure and efficient data handling is deemed essential for fostering innovation and economic expansion. This vision underscores the importance of data as both an economic asset and a pillar of national strategy.
China’s Role in Global Data Governance
China’s efforts in shaping global standards for data governance are significant. Through multilateral frameworks like the G20 and APEC, and participation in bodies such as the International Organization for Standardization, China aims to cement its leadership in the global data industry. The One Belt One Road initiative is also emphasized as a regional cooperation platform to promote and showcase trusted data spaces. By actively engaging in these international platforms, China seeks not only to influence but also to define the standards and practices that will govern global data transactions and security.
The NDA’s broad agenda for this year also includes addressing data property rights, data circulation, benefit distribution, security governance, and digital economy development. These initiatives demonstrate China’s accelerated push towards establishing a robust national data ecosystem and influencing global data governance, thereby setting the stage to challenge the current dominance of foreign data infrastructures. Through these efforts, China aims to position itself as a central player in the global data landscape, leveraging its extensive data capabilities to shape the future of international data policies and practices.
Strategic Implications of Trusted Data Spaces
The “trusted data space” action plan is an integral part of China’s national strategy to harness data as a critical economic resource and a pivotal element in the country’s digital and economic growth. By establishing a secure, efficient, and unified data market, and through active international engagement, China aims to strengthen its position in the global data governance landscape. This comprehensive strategy could potentially redefine global norms around data sharing, use, and security, positioning China at the forefront of the digital economy. Such a shift would likely have far-reaching implications for international commerce and cybersecurity, necessitating adjustments from other global players.
This initiative, anchored in President Xi Jinping’s vision of data as the new oil, underscores China’s goal of leveraging data to drive future economic development and technological advancement. The establishment of over 100 trusted data spaces by 2028 aims to overcome existing challenges in data usage and transaction efficiency, paving the way for an integrated and secure national data market. Success in this venture would not only enhance China’s domestic data efficiency but also elevate its role as a leader in the global data economy, influencing practices and standards worldwide.
International Engagement and Influence
The plan’s emphasis on fostering international data standards and its agenda of global engagement reflect China’s ambition to expand its influence in global data governance. The One Belt One Road initiative and participation in international standard-setting organizations are strategic moves to showcase China’s leadership and expertise in developing robust data infrastructure. These engagements are designed to present China as a model for data governance, encouraging other nations to adopt similar standards and practices, thereby extending China’s influence.
The enactment of new data security laws also aligns with this goal by simplifying the management and use of sensitive information, ensuring that companies adhere to infrastructure that aligns with Chinese Communist Party objectives. These laws facilitate a controlled environment where data can flow freely yet securely, both domestically and across borders, reinforcing China’s command over its data ecosystem. By tightening data security measures, China aims to build a more trustworthy and reliable data landscape, fostering confidence among domestic and international data stakeholders alike.
Potential Global Impact
China has recently rolled out an ambitious five-year plan aiming to establish over 100 “trusted data spaces” by 2028. This strategic move aligns with China’s broader goals of gaining dominance in international data governance and creating a unified national data market. The core concept behind these data spaces is to facilitate secure and efficient data sharing through consensus-based rules and stringent government oversight. This initiative is part of a larger effort to develop a robust data ecosystem, spur growth in the digital economy, and strengthen China’s grip over data control. The plan emphasizes building infrastructures that enable the secure circulation and utilization of data among various stakeholders. These infrastructures will be managed by operators who ensure adherence to relevant regulations, making the data available to both public and private entities. By developing these trusted data spaces, China aims to solidify its leadership in the global digital landscape and influence the future of data governance.
