The top regulatory body overseeing the internet in China, the Cyberspace Administration of China (CAC), is set to delegate many responsibilities to the National Data Agency (NDA) as per a government reform plan unveiled by the State Council, China’s cabinet, in March.
China is taking decisive steps to strengthen data enforcement measures for the public good. The NDA has been entrusted with the pivotal role of advancing China’s modernization by formulating blueprints, establishing unified standards for data sharing, and driving the digital transformation of public services. Additionally, it will represent regional governments, the National Development and Reform Commission (NDRC), and the Ministry of Industry and Information Technology.
Leading the NDA is Liu Liehong, a seasoned professional in the information technology industry with over three decades of experience, who previously held the position of president at the state-owned telecommunications company, China Unicom. Assisting him as the assistant head is Shen Zhulin, the former deputy director of the hi-tech industry section at the NDRC.
In his capacity as the head of the NDA, Liu has expressed the agency’s commitment to supporting the high-quality development of the Digital Silk Road, a modern component of the Belt and Road Initiative. This includes fostering collaborations in areas such as e-commerce and smart city initiatives, as highlighted during the upcoming Belt and Road Forum in Beijing.
The NDA’s primary objective is to facilitate China’s progress by establishing mechanisms and requirements to facilitate data sharing among various entities, particularly government departments. However, it is crucial to note that this shift does not diminish the emphasis on data security, which remains under the purview of the CAC, given the prevailing global security concerns.
Comparison between ChatGPT and China’s AI
According to Zeng Liaoyuan, an associate professor specializing in information and communication engineering at the University of Electronic Science and Technology of China, the establishment of the NDA reflects China’s recognition of the necessity to effectively leverage its extensive data resources to bolster the rapid growth of its online sector. China reportedly generated around 8.1 zettabytes of data last year, positioning it as the second-largest producer globally, following the United States.
The exponential growth of China’s digital economy, constituting 41.5% of its GDP, reached 50.2 trillion yuan (US$690 billion) in the previous year. However, this growth has brought about challenges in terms of governance and regulation. Approximately 15 government bodies are responsible for data legislation and oversight, resulting in fragmentation and inefficiencies. To address these issues and harness the power of AI, the NDA was established to centralize and standardize data for research and development purposes.
Michael Frank, a senior fellow at the Center for Strategic and International Studies, emphasized the critical role of data in artificial intelligence development. He highlighted that China’s focus on consolidating and labeling vast data sets is essential for advancing AI capabilities. The NDA’s creation aims to streamline data access for researchers across various disciplines, enabling more effective AI research.
While the NDA’s establishment signifies a significant step towards enhancing China’s data governance framework, challenges lie ahead in operationalizing its functions. Collaboration with other government entities, particularly those overseeing security, will be crucial for the NDA’s success. The NDA’s role in facilitating data sharing while ensuring data security aligns with China’s broader strategy to consolidate its data management regime and compete globally in setting data governance standards.
In conclusion, the NDA’s emergence marks a pivotal development in China’s data governance landscape, with implications for international data flows, regulatory frameworks, and global business practices.
