China to tap full potential of data assets

Guidelines stress lawful, efficient flows, protection of rights of market entities

China will accelerate the lawful and efficient flow and use of data to tap the full potential of data assets in an orderly manner while safeguarding data market entities' legitimate rights, and to promote the healthy development of the digital economy, according to guidelines on enhancing governance of data assets unveiled by the Ministry of Finance on Thursday.

Experts said the guidelines mark a milestone in China's data asset governance. The guidelines, they said, stipulate clear pathways and principles on data asset management.

This is important as data have become a new type of production factor and the most important strategic resource amid rapid growth of the digital economy, they said.

In a statement, an official of the ministry said that urgent efforts are needed to enhance related mechanisms and guide data asset governance.

The new guidelines stress well-coordinated data asset security, utilization and personal information protection, strengthening category-based tiered data management and data asset utilization regulation, safeguarding the legitimate rights of all entities, and support for conditional and paid use of public data for industrial development.

They also stipulate key tasks centering on data asset governance improvement. Those tasks include data asset rights and duty identification, enhancing related standards and properly promoting utilization of data assets.

The guidelines underline a smooth data asset income distribution mechanism, in accordance with the principle of "those who invest or contribute shall reap benefits".

It encourages legal development of data asset value, respects the re-creation and redistribution of data asset value, and supports corresponding returns on investments in data asset use. It also calls for a public data asset governance investment and income distribution mechanism, professional operation of public data assets through public data asset operating companies and promotion of the development, utilization and value realization of public data assets.

Zhu Keli, founding director of the China Institute of New Economy, said the new guidelines are expected to provide a solid base for the healthy development of the digital economy.

"The guidelines are conducive to establishing an open, fair and orderly production factor market of data and accelerating the efficient flow and use of data," said Zhu, who is also a standing director with the China Information Industry Association.

"Most importantly, the provisions on smoothing out a data asset income distribution mechanism will significantly motivate all parties concerned to take part in data asset management and utilization, to realize innovative applications of data to create value."

He also said the emphasis of the guidelines on public data asset management and utilization will promote high-quality supply and value realization of public data assets, which is conducive to expanding scale and increasing efficiency of public services and eventually promoting the development of an inclusive digital economy.