The first elaboration on China's policy for promoting "data infrastructure", from the head of China's National Data Bureau

With the establishment of the National Data Bureau, China’s data industry is entering a new stage. Data, as a key production element, has received renewed attention and has become a critical strategic resource for promoting the development of the digital economy.

Now, China is talking about “data infrastructure” (数据基础设施）, a concept that is difficult to trace its origin. According to ChatGPT, China first officially proposed the “data infrastructure” concept in China’s "Government Work Report" in March 2015. I checked the report and found nothing. However, On February 27, 2014, at the first meeting of the Central Leading Group for Cyber Security and Informatization, China’s top leader emphasised: "There must be a good “information infrastructure”(信息基础设施） to form a strong “information economy”（信息经济）.

In China’s context, the words “cyber”, “information”, and “digital” are often used mingled. So, it’s likely that “data infrastructure” is an extension of “information infrastructure” in the data field, covering multiple aspects such as data centres, big data platforms, cloud services, etc.

The lingering issue is how China should define the “data infrastructure” that supports data elements' aggregation, circulation, application, and security. What functions should “data infrastructure” play, and how should it be built?

On November 23, Liu Liehong, Head of the National Data Bureau, made the following important remarks on “data infrastructure” for the first time in his speech at the Forum on Data Element Governance and Marketization at China’s Second Global Digital Trade Expo. He revealed that improving the data infrastructure system and enhancing data infrastructure building are two of the key tasks the National Data Bureau promoted.

In terms of understanding data infrastructure, Liu pointed out that according to preliminary research in the industry, data infrastructure is a new type of infrastructure that provides integrated data aggregation, processing, circulation, application, operation, and security services to society from the perspective of releasing the value of data elements, supported by facilities such as internet and computing power. It is an organic whole covering hardware, software, open-source protocols, standard specifications, mechanism design, etc. He further pointed out that from the capabilities perspective, data infrastructure supports the entire process of data aggregation, processing, circulation, application, operation, and security.

It would be worthy of attention what concert actions will be taken to build China’s data infrastructure.

Attached the full text of the speech

Speech at the Second Global Digital Trade Expo Forum on Data Element Governance and Marketization

Liu Liehong

November 23, 2023

It is a great pleasure to come to the beautiful city of Hangzhou to participate in the Second Global Digital Trade Expo Forum on Data Element Governance and Marketization and to discuss relevant issues in the construction of data element markets with everyone. On behalf of the National Data Bureau, I would like to congratulate the forum and express my gratitude to the leaders, experts, entrepreneurs, and international friends who care about and support the development of China's data industry.

General Secretary Xi Jinping pointed out that data is a new production factor, a fundamental resource, a strategic resource, and an important productive force. Currently, as a key production factor in the digital economy era, data is gradually integrating into all aspects of production and life, profoundly affecting and reconstructing economic and social operations and social governance, and has become a key strategic resource that affects future development.

In March of this year, the central government decided to establish the National Data Bureau. On October 25th, the National Data Bureau was officially established with the mission of promoting compliant, efficient circulation and use of data, empowering the real economy, and building a data-based system that is adapted to the characteristics of data, conforms to the development rules of the digital economy, and showcases innovation leadership, focusing on data element property rights, circulation, distribution, and governance. The National Data Bureau aims to break through bottlenecks and difficulties in data circulation and utilization, fully tap the potential of data elements, promote the development of the digital economy, and advance the high-quality development of digital infrastructure construction. It also aims to promote technological innovation in data and international cooperation in the digital economy.

Currently, the National Data Bureau is promoting a series of key tasks related to the market-oriented allocation reform of data elements, including enriching and perfecting the system of data-based institutions, promoting data circulation, transaction, and development, advancing the construction of data infrastructure, promoting the core technology of data, and strengthening data security governance. I would like to take this opportunity to share with you some thoughts on the construction of data infrastructure.

As the digital economy, with data as a key element, accelerates its development, new requirements are being placed on the related infrastructure. There is a need to construct data infrastructure that is adapted to the characteristics of data elements, promotes the circulation and utilization of data, and maximizes the value and utility of data. According to preliminary research in the industry, data infrastructure is a new type of infrastructure that provides integrated services for data aggregation, processing, circulation, application, operation, and security to society, from the perspective of releasing the value of data elements. This infrastructure is supported by facilities such as networks and computing power, and encompasses hardware, software, open-source protocols, standard specifications, and mechanism design. Representative network facilities such as 5G, fiber optics, and satellite internet provide high-speed ubiquitous connectivity for data, while computing facilities represented by general, intelligent, and supercomputing power provide efficient and agile processing capabilities for data. Data circulation facilities represented by data space, blockchain, and high-speed data networks break through the barriers to data sharing and circulation, and data security facilities represented by privacy computing and federated learning ensure the security of data.

From a capability perspective, data infrastructure supports the entire process of data aggregation, processing, circulation, application, operation, and security.

In terms of data aggregation, data infrastructure relies on ubiquitous high-speed communication networks such as 5G, high-speed fiber optics, IPv6, next-generation internet, and satellite internet. It also incorporates a series of technologies such as the Internet of Things, blockchain, identification coding and decoding, allowing for efficient access, trusted registration, and precise authorization of multi-source, multi-dimensional data, effectively enhancing the universality, convenience, and precision of the data aggregation process.

In terms of data processing, data infrastructure utilizes technologies such as cloud computing, edge computing, distributed computing, big data processing, AI analysis, and green low-carbon solutions to provide efficient, convenient, secure, and reliable data storage, computing, and analysis capabilities for participants. This effectively promotes high efficiency, low cost, and high intelligence in the data processing process.

In terms of data circulation, data infrastructure uses technologies such as data space, privacy computing, blockchain, data desensitization, and data sandbox to achieve "available but invisible" and "controllable and measurable" data exchange between different entities, providing a trusted environment for data sharing, openness, and transactions for different industries, regions, and organizations. This effectively enhances the security and reliability of data circulation.

Regarding data application, data infrastructure provides universal intelligent decision-making, design assistance, and smart management capabilities for data application providers, helping them optimize the design, production, management, sales, and service processes, further lowering the threshold for data application and enhancing the level of digitization. In particular, there have been breakthroughs in generative AI technology this year, and data infrastructure should fully leverage the latest achievements of large AI models to better empower various industries with data elements and promote digital transformation and intelligent upgrading.

In terms of data operations, data infrastructure promotes the orderly and efficient operation of data aggregation, processing, circulation, application, and transactions through the coordinated linkage of a series of technical tools and regulatory measures. This facilitates the precise matching of supply and demand in the data element market, ensures the high-quality implementation of public services such as clearing and settlement, audit supervision, and dispute resolution, and effectively supports the efficient allocation of various resources in the data element market.

In terms of data security, data infrastructure helps all participants establish a data security system through techniques such as privacy protection, data encryption, and digital identity. It promotes best practices in data compliance throughout the data lifecycle, ensuring the credibility, integrity, and security of data.

Through data infrastructure, data resources from different regions and fields are effectively aggregated, data products from different industries and institutions are efficiently circulated in compliance, and different participating entities effectively utilize data resources and products. This overall promotes data services across various industries, deeply integrating into social production and life, and advancing the "availability, mobility, and effective use" of data elements. We believe that the construction of data infrastructure, together with the establishment of basic data systems and the implementation of data resource development and utilization, will collectively play a role in addressing core issues such as property rights, income distribution, transaction circulation, and security governance of data elements.

At the same time, data infrastructure will also play a significant role in expanding the scale of the data industry, fostering a thriving data industry ecosystem, and promoting the high-quality development of the digital economy. According to preliminary estimates from the industry, data infrastructure is expected to attract approximately 400 billion yuan in direct investment annually, driving an investment scale of about 2 trillion yuan in the next five years and promoting the emergence of new models of digital integration, thereby advancing the high-quality development of the digital economy. The construction of data infrastructure not only requires the participation of the entire society but will also bring new development opportunities for the entire society.

Next, we will accelerate the construction of data infrastructure. First, we will strengthen top-level design and deploy it appropriately in advance. Second, we will foster the industrial ecosystem, promoting industrial technological innovation and integration. Third, we will engage in international cooperation to promote the construction of international interconnection of data infrastructure.

The grand blueprint for the data industry is gradually unfolding. In recent years, Zhejiang has persisted in fully implementing the blueprint. As a trial area for the innovative development of the digital economy, Zhejiang has continuously deepened the construction of "Digital Zhejiang" and vigorously promoted the innovative institutional system of the digital economy. In particular, it has firmly seized the opportunities identified in the "Twenty Measures for Data," fully leveraged the advantages of the Internet and big data, actively explored the Zhejiang path to activate the value of data, vigorously expanded the development and utilization scenarios of data, fully activated the value of industrial data, accelerated the cultivation of the data element market, and initially formed a batch of achievements with distinct Zhejiang characteristics.

In the era of data innovation, integration, and transformation, we welcome universities, research institutes, and all sectors of the industry chain to join us in advancing the continuous evolution and iteration of concept theory, architectural systems, core technology, and standards and specifications of data infrastructure. Let's work together to promote the construction of data infrastructure, improve the basic data system, activate the value of data elements, compose a new chapter in the development of the digital economy, and contribute to the development of China's data industry!

(According to the speech by Liu Liehong at the Data Element Governance and Marketization Forum of the Second Global Digital Trade Expo, the text has been slightly edited for brevity.)