What industries can be changed by establishing the National Data Bureau?

Produced by Tiger Sniffing Technology Group

Author | Qi Jian

Editor | Chen Yifan

Toutu | vision china

Data elements are becoming more and more important.

On March 7, 2023, according to the Xinhua News Agency, the National Data Bureau was established according to the State Council’s proposal to submit the institutional reform plan of the State Council.

The National Bureau of Data will be responsible for coordinating and promoting the construction of basic data systems, coordinating the integration, sharing, development and utilization of data resources, and coordinating the planning and construction of digital China, digital economy and digital society, which will be managed by the National Development and Reform Commission.

The establishment of the National Data Bureau will be more conducive to mobilizing all resources to comprehensively promote the construction of digital China and the development of digital economy.

"The most practical contradiction in front of data circulation is the ownership of data and the security of data. Data ownership and security issues are big issues involving public interests, and no institution or enterprise can solve them. " Guo Zhaohui, chief scientist of Shanghai Youye Information Technology Co., Ltd., told Tiger Sniff.

Therefore, the consensus of many experts and industrial people is that the establishment of a national data bureau can better solve the urgent problems faced by the development and utilization of data elements resources at the national level. For example, at present, the domestic data infrastructure system needs to carry out a series of system construction in terms of data confirmation, circulation, transaction, rights distribution, security and compliance, and provide institutional guarantee for the cultivation of data elements market.

Institutional guarantee of data factor market

On February 26th, Peng Lihui, Secretary-General of china electronic chamber of commerce, introduced that in 2021, China’s data element market will be about 81.5 billion yuan.It is estimated that the compound growth rate of market scale will exceed 25% during the "14th Five-Year Plan" period, and the scale is expected to approach 200 billion yuan by 2025.From the perspective of subdivision, the market scale of storage, analysis and processing of data elements all exceeds 15 billion yuan, laying a solid foundation for the resource utilization of data elements; The industrial scale of data transaction and data service reached 12 billion yuan and 8.5 billion yuan respectively.

However, as an important factor of production, the current market system is not perfect, and the basic systems such as data property rights and transaction circulation need to be formulated and improved urgently.

Guo Zhaohui gave an example to Tiger Sniff. Taking the medical industry as an example, from the aspect of medical treatment, the data in China’s medical field is very huge. China has a large population, and every hospital has a large number of patients and diseases data. However, due to the poor data circulation, each hospital can only fight on its own and cannot establish a unified data system. This not only increases the difficulty for patients to seek medical treatment, but also greatly hinders the development and progress of medical system and medical technology. Even from the perspective of technological development, the research and development of medical AI needs to mobilize data from all parties to "feed" AI, but if the data factor market is not opened, and the data in the medical industry is relatively scattered, it is necessary to consider the protection of patient privacy, which makes it difficult for relevant R&D enterprises to obtain data, thus hindering the research and development of technology.

In many industries, some enterprises and research institutions have thought about data alliance, but in practice, such alliance is extremely difficult to promote.For example, for training large models, a large amount of data is needed.This brings huge workload to data cleaning, screening and standardization.They also hope to cooperate with enterprises with a large amount of data, so that the amount of data is larger and the quality is better, but the reality is that enterprises are often reluctant to share these data. Guo Zhaohui said that because these data alliances have no administrative and law enforcement rights, it is difficult to actually promote data circulation.

Even the big data exchange established in the past few years is facing an embarrassing situation. Previously, a survey conducted by Nandu Big Data Research Institute found that at present, local data exchanges generally require enterprises to provide compliance assessment certificates issued by professional lawyers for each transaction before entering the transaction, that is, the so-called "assessment once entering the market". However, this has greatly increased the cost of enterprises’ entry transactions, and the related supervision mechanism is not perfect, which leads enterprises to "dare not enter the market" and "unwilling to enter the market". This actually prevents data resources from being used to a greater extent.

In the enterprise search, "data transaction" is used as the key word to search the enterprise name, and there are 57 operating companies whose operating status is surviving, in business and established. Many major cities and industrial bases in China have set up their own data exchanges, including Beijing, Shanghai, Shenzhen, Guangzhou, Guiyang, Suzhou and Hangzhou. Provincial data exchanges have also been established in Hunan, Hubei and Fujian.

So what is the actual trading volume of these exchanges? Take Guiyang Big Data Exchange as an example. Guiyang Big Data Exchange was officially put into operation in 2015. It is the earliest batch of data exchanges in China. Up to now, the exchange has accumulated 502 data vendors and 21 data intermediaries, with a total of 800 products and 438 transactions, with a total transaction volume of 734 million yuan.

Fan Yuan, chairman of Hangzhou Anheng Information Technology Co., Ltd., has worked hard in the field of data security for many years. According to Fan Yuan,The establishment of the National Data Bureau can better coordinate and promote the construction of the basic data system, and coordinate the integration, sharing, development and utilization of data resources.In this way, it can provide richer data resources and more efficient data acquisition channels for the big data industry, and provide a broader space for big data applications and data element markets.

Fan Yuan also put forward an important aspect, that is, the establishment of data standards. For a long time, there has not been a practical and effective unified standard for the transaction and circulation of data, which has also brought a lot of trouble to data work. Fan Yuan said that the National Bureau of Data will be responsible for promoting data standardization and standardizing various data formats and data structures, which will help improve the efficiency and accuracy of data exchange, accelerate the establishment of a data classification and classification protection system, and make the big data industry more standardized and standardized.

Tighter supervision

"If you don’t open the interface of data sharing, then such a large data resource in China can’t be played well." Guo Zhaohui believes that the development of intelligence can only be achieved based on data sharing. However, the main reasons for the difficulty in data sharing and slow circulation are not only the failure to clearly confirm the rights and formulate standards, but also the safety and compliance issues.

Fan Yuan said that after the establishment of the National Data Bureau, it will be responsible for the supervision and security management of national data resources, which will mean stricter data security standards and regulatory requirements, and make the risks of data leakage and abuse more effectively controlled.

Or take the data exchange as an example. Ideally, more data should circulate in the exchange. However, due to the lack of supervision, some data flows have gone off-site and even entered the "black market".

According to the "2022 Data Asset Leakage Analysis Report" released by Internet security research institutions threatening hunters on March 3,In 2022, there were more than 3,200 cases of data leakage in China, nearly double the number in 2021.There are a wide range of data leakage channels, with anonymous society software accounting for over 75%. In the distribution of data leakage industries in 2022, finance, logistics and e-commerce industries occupy the top three. Among the main reasons for data leakage in 2022, operator channel leakage accounted for the first place. In the underground black market data transactions, about 71% transactions disclose the amount of data sold, among which "small-scale real-time data" with the transaction data level below 10,000 exceeds 73%, which has become the mainstream of data transactions.

In terms of data security, the GDPR of the European Union is called "the most stringent data protection regulation in history", while the protection of personal information in the United States focuses on industry self-discipline. Tiger Sniff asked a number of professionals and legal professionals, and the consensus was that China would adopt a regulation between the United States and Europe. After all, if it was too strict, it would restrict the development of the industry. Today, in terms of data security protection, China has the Cyber Security Law and the Personal Information Protection Law, which came into effect in November 2021. However, more detailed rules and norms are needed in the landing of specific practical problems.

At present, the national data bureau should focus more on public utilities, government affairs, and areas with large data and great influence on the national economy and people’s livelihood. It may play a relatively small role in promoting those industries with strong personalization or more subdivision standards.

This is also the consensus of the industry. Fan Yuan’s view is that the National Bureau of Data will promote the industry to a more stable development direction, especially for Party B, which provides products and technical services for the government industry. For example, for domestic relational databases and big data storage engines, it will be beneficial to domestic companies such as chips, storage, operating systems and processors at the data level for a long time.

Specifically, how to land in the industry, Cui Xiangyu, assistant vice president of Beijing Haitian Ruisheng Technology Co., Ltd., suggested that scientific research institutions, enterprises and other industrial entities should be specially supported to form innovative consortia, and joint research should be carried out on key technologies and capabilities to enhance the value of data elements, and the transformation and application of results should be accelerated to activate the potential of data elements and release the value of data elements. It is necessary to strengthen the research and construction of the basic data supply capacity of large models, such as building an integrated basic data resource supply service platform, a digital computing integrated service platform, artificial intelligence data sets of key industries, data services based on blockchain and privacy computing, and other new infrastructures to consolidate the data base of the digital economy.

On the other hand, the suggestion is to actively explore and support the establishment of national data factor market cultivation experimental zones in many places, and guide the market-oriented entities such as telecom operators, platform enterprises and industry leaders to actively participate, so as to achieve breakthroughs in data basic systems, data circulation transactions, data resources and data factor industry ecology, and accelerate the process of data factor market cultivation.

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