Image Source : China Visual

BEIJING, March 8 (TMTPOST) —— China will establish a national data bureau responsible for coordinating the sharing and development of the country's data resources, according to a reform plan submitted on Tuesday to the National People's Congress(NPC), the country's top legislature.

The proposed bureau will be administered by the state planning agency the National Development and Reform Commission, which is also the country's top economic planner. The bureau will be responsible for advancing the development of data-related fundamental institutions, coordinating the integration, sharing, development, and application of data resources, promoting smart cities and the exchange of information resources across industries, and pushing forward the planning and building of a Digital China with a digital economy and a digital society.

According to the plan on reforming State Council institutions, the current structure that is overseen by multiple ministries will be changed, including the China Internet Information Office, the NDRC, the Ministry of Industry and Information Technology (MIIT), and the Office of the Central Cyberspace Affairs Commission. Industry experts said that the involvement of multiple authorities sometimes leaves companies confused about which agency to approach on compliance issues.

The national data bureau would enforce data collection and set rules for companies and formulate regulations on whether multinational companies can export data generated by their operations in China, according to the plan.

The new data regulator would also investigate a variety of issues in the digital sphere, such as the use of algorithms to manipulate data or induce Internet addiction in minors, as well as identify data security vulnerabilities that are vulnerable to cyberattacks.

As the digital economy in China enters into fast development, the added value of new industries, new forms, and models of business now accounts for over 17% of the total GDP in China. The country will vigorously develop the digital economy, improve regulations, and support the development of the platform economy. The development of the industrial Internet and the digitalization and intellectualization of the manufacturing industry will also be strongly promoted to accelerate the digital transformation of traditional industries and small and medium-sized enterprises and strive to realize high-end manufacturing, smart transformation, and green economic development.

As for the background of the establishment of the national data bureau, Xiao Jie, State Councilor and Secretary-General of the State Council said, "In today's society, digital resources and digital economy play a fundamental role in economic and social development, and are of great significance to the building of a new development pattern, a modern economic system, and new national competitive advantages. We must strengthen the management, development, and utilization of data. Under the premise of maintaining the overall stability of the current work pattern, such as data security, industry data supervision, information development, and digital government construction, it is necessary to set up a national data bureau that focuses on utilization, integration, and sharing of digital resources.”

In recent years, China has taken several moves to strengthen its management of the vast troves of data collected in the country, citing personal data security and national security concerns. A series of regulations aimed at strengthening data security and protecting personal information has been implemented by the government, including the Data Security Act and the Personal Information Protection Act, both of which were enacted in the fall of 2021, to require organizations with large user bases to undergo assessments and obtain approvals when handling data.