Block-buster plan to leverage data to drive real economy

The National Data Administration and 17 other departments have jointly issued a three-year action plan on improving the high-level application of data elements so that they can play a bigger role in boosting cross-sector innovation.

In 2022, the scale of China's digital economy reached 50.2 trillion yuan ($7.03 trillion), accounting for 41.5 percent of its GDP. The digital economy is a focus of major country competition. The United States tries to control the formulation of international rules for the digital trade. The competition between countries on key issues such as cross-border digital taxation, digital privacy protection, cross-border data flows, intellectual property rights and digital algorithms has become intense.

As a key element, data enters the production, circulation, exchange and consumption. In this process, modern digital technology has enabled an unprecedented increase in information density, which has promoted a deep reshaping of the original organizational structure.

China should further promote the integration of data elements with the real economy, which has promoted the transformation and upgrading of its traditional industries. The value of data elements in diminishing marginal costs and increasing marginal returns has gradually been recognized by various parties. The action plan just aims to give full play to the multiplier effect of data elements.

The action plan calls for reforms in 12 sectors, including manufacturing, commerce and green industry. The document has provided forward-looking guidance on how to promote the application of data elements in these industries. These measures are targeted and operable.

Implementing the action plan requires governments at all levels to accelerate the coordinated integration of data elements with technology, capital, talent and other economic factors, and break through the institutional constraints against the flow of resource elements. This also entails promoting the construction of data infrastructure, focusing on data confirmation and pricing, accelerating the construction of a data element circulation and transaction system, designing diversified data development and utilization mechanisms.

21ST CENTURY BUSINESS HERALD