Report by the U.S.-China Economic and Security Review Commission: “China watchers in 2021 would not have predicted the country would lead the world in commercializing data and treating it as an asset. After regulators in 2020 abruptly canceled the mega-IPO of Ant Group, then one of China’s largest and most prominent fintech firms, China’s homegrown tech giants spent the next three years in the crosshairs of the Chinese Communist Party (CCP). Curbing the private sector’s ability to collect and use data without state oversight was one focus of the tech crackdown, with the Cyberspace Administration of China (CAC) targeting technology firms and social media platforms. In those same years, China stepped up censorship of economic data, canceling official series and banning private estimates that painted an unflattering picture and limiting foreign access to Chinese data and its aggregators.
Yet as it was reining in big tech’s data practices, China’s government was figuring out how to extract value from data at a national scale. Although Chinese officials designated data as a factor of production in 2020, China’s first significant action to reopen space for commercial innovation and data monetization policies came in 2022 with a sweeping development framework. Fast forward to 2026, and China’s data economy is beginning to flourish through government-led data exchanges, new data accounting rules, and pilot programs that treat data as a resource. As more actors refine and package data, they unlock productivity gains for themselves or outside buyers, much like land or capital goods are created, used, and transferred.
Rather than leaving the development of a data economy up to market forces, China is building infrastructure where participants can exchange data—fostering third-party services like data valuation, analytics, and financing and encouraging wider participation in the data economy…(More)”.
