Read in Chinese
Speakers:
Mr. Liu Liehong, administrator of the National Data Administration (NDA)
Ms. Luan Jie, deputy director general of the Department of Policy and Planning of the NDA
Mr. Zhang Wang, director general of the Department of Data Resources of the NDA
Mr. Du Wei, director general of the Department of Digital Technology and Infrastructure Construction of the NDA
Chairperson:
Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
July 22, 2024
Xing Huina:
Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Liu Liehong, administrator of the National Data Administration (NDA), to brief you on relevant developments and to take your questions. Also present today are Ms. Luan Jie, deputy director general of the Department of Policy and Planning of the NDA; Mr. Zhang Wang, director general of the Department of Data Resources of the NDA; and Mr. Du Wei, director general of the Department of Digital Technology and Infrastructure Construction of the NDA.
Now, I'll give the floor to Mr. Liu for his introduction.
Liu Liehong:
I would like to express my gratitude to you all for your interest in and care for the data-related work. The 20th Central Committee of the Communist Party of China (CPC) convened its third plenary session last week. Since then, the NDA has been actively studying, publicizing and implementing the guiding principles from the session. At this juncture, we are holding this press conference to brief you on the specific measures the NDA will take to implement the resolutions of the plenary session and to promote high-quality development of the national data sector. Since its establishment last October, the NDA has followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and deeply grasped its functions. We have focused on advancing reforms to ensure data as a factor of production is allocated by the market, coordinated the development of a Digital China, digital economy and a digital society, aimed to better serve high-quality development through data, and opened new prospects for data-related work.
In terms of reforms to promote market-based allocation of data as a factor of production, we have accelerated the improvement of the foundational institutional system for data. To ensure that data can be produced, flow smoothly, be effectively utilized and remain secure, we have emphasized systematic planning and enhanced policy support. We have studied and drafted multiple institutional and regulatory documents guiding fields including data ownership, circulation and transaction, revenue distribution, security governance, development and utilization of public and corporate data, high-quality development of the digital economy, and data infrastructure construction. Through these efforts, we aim to transform China's vast data resources into new national competitive advantages. During this process, some localities have explored the structural separation of data ownership at a faster pace, advanced the improvement of mechanisms for data authorization, and sped up the improvement of the market system for data as a factor of production, providing strong support for local economic and social high-quality development.
We have accelerated the deployment of data infrastructure, thoroughly implemented the "East Data, West Computing" project, and promoted the development of a nationally unified computing network. Significant progress has been made in areas such as computing power layout, network transmission, monitoring and dispatch, computing-electricity coordination, and security protection. We have studied, developed and expanded policies and measures to foster the growth of the data annotation industry, publishing a list of cities tasked with building data annotation bases. Additionally, we have studied and formulated guidelines for data infrastructure construction, and initiated pilot projects for data circulation and utilization infrastructure, so as to create a secure and trustworthy environment for data flow and use.
We have strived to enhance the development and utilization of data resources. The NDA has, along with other related departments, issued a three-year action plan to promote the use of data as a factor of production (2024-2026), releasing the first batch of 20 exemplary data use cases, as well as identifying and promoting a number of typical application scenarios. At the same time, we are actively promoting reforms of public data resources management and operation mechanisms. By leveraging the development and utilization of public data, we aim to drive the integration and application of various data sources, and vigorously promote the development and utilization of enterprise data resources. Local data management authorities are also actively exploring ways to facilitate compliant and efficient flow and use of data, and establishing diverse application scenarios and models to better unleash the value of data as a factor of production.
In coordinating the construction of a Digital China, the digital economy and a digital society, we have sped up the building of a Digital China, issued the list of key points for the work on building a Digital China in 2024, and made plans for this year's key tasks. We have successfully held the 7th Digital China Summit, during which 470 high-level activities of all kinds were organized with 1.15 million people participating in the offline events in various forms. The full text of the Digital China Development Report (2023) has been released, systematically summarizing the important progress and achievements of the construction of a Digital China. At present, we are working with Guizhou province to prepare for the China International Big Data Industry Expo 2024. We hope all sectors of the society will pay more attention to the expo and actively participate in it.
We have deepened the role of digitalization in empowering high-quality economic development. We have issued key points of the work on the digital economy in 2024 this year, continued to promote the integrated development of the real economy and digital economy, kept focusing on high-quality development as the top priority, accelerated advancing the innovative development of the digital economy, and continued to foster and develop new quality productive forces.
We have carried out overall planning for the development and construction of the digital society, unveiled a guideline on promoting the development of smart cities and the across-the-board urban digital transformation, and also formulated the list of key tasks for the implementation plan on facilitating common prosperity through a greater and better digital economy, promoting the sharing of digital dividends and effectively enhancing the sense of fulfilment from the digital society.
We have made greater efforts to advance international cooperation in the data field. In June, the inaugural meeting of the Singapore-China Digital Policy Dialogue mechanism was held in Beijing, which focused on strengthening exchanges and cooperation on the cross-border flow of data, artificial intelligence and other agendas China and Singapore are concerned about. We have carried out eight major measures for supporting high-quality Belt and Road cooperation and advanced policy exchanges and program cooperation with 14 countries that have jointly signed the Beijing Initiative on Belt and Road International Digital Economy Cooperation.
This year marks the 75th anniversary of the founding of the People's Republic of China. It is also a crucial year for achieving the objectives and tasks laid down in the 14th Five-Year Plan and an important year for making breakthroughs in laying the groundwork and accelerating the progress in the data work. Next, the NDA will thoroughly implement the guiding principles of the 20th CPC National Congress and the second and third plenary sessions of the 20th CPC Central Committee, study and issue the guidelines on studying, publicizing and implementing the guiding principles of the third plenary session of the 20th CPC Central Committee, and review and apply the valuable experience we have gained from our efforts to deepen reform comprehensively since the launch of reform and opening up, especially in the new era. We will further promote reform related to the market-based allocation of data elements, coordinate the planning and construction of a Digital China, the digital economy and a digital society, accelerate the development of new quality productive forces, advance the in-depth integration of the real economy and digital economy at a faster pace, and speed up the cultivation of a national unified data market, so as to contribute the strengths of data to Chinese modernization.
That is all for my introduction. My colleagues and I will take your questions. Thank you.
Xing Huina:
The floor is now open for questions. Please identify the media outlet you work for before raising questions.
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Nanfang Daily, Nanfang Plus:
The third plenary session of the 20th CPC Central Committee has made plans for further deepening reform comprehensively to advance Chinese modernization. What role will data play in this? How will the NDA advance the reform related to the market-oriented allocation of data elements and effectively unleash the vitality of data? Thank you.
Liu Liehong:
Thank you for your questions. I will answer this one. The third plenary session of the 20th CPC Central Committee has made plans for accelerating the construction of the system and mechanism for digital economy and improving rules and institutions for the data market, pointing out the direction for advancing further reforms in the data field.
China is the first country in the world to consider data as a factor of production. Since the establishment of the NDA, we have deeply felt that data, as a new factor of production, has huge potential value and is constantly changing and evolving. Advancing reform related to the market-based allocation of data elements and promoting their smooth flow and efficient allocation are conducive to giving better play to the role of data, as a new type of production factor, in optimizing the combination of other production factors and achieving innovative allocation of production factors, creating new industries, business models and growth drivers, and promoting the cultivation and development of new quality productive forces. They are conducive to promoting the development of data-based sci-tech innovation capacity and enhancing the new competitive edge in the digital age, by leveraging the strengths of China's enormous market, abundant application scenarios and vast data resources. They are conducive to speeding up digital empowerment, driving economic growth drivers to shift from relying mainly on increasing input of factors of production to making development driven more by innovation, thus promoting high-quality development. They are conducive to improving public management and services, providing solid support for modernizing China's system and capacity for governance.
As data is distinct from traditional factors of production like land and capital, data work tends to be more complicated. For example, data exhibits both positive and negative externalities. On one hand, we promote its circulation and utilization to enhance resource allocation efficiency and foster new industries and business forms; on the other hand, we prevent privacy breaches, data abuses and other potential risks in a bid to achieve more efficient and more secure development. Additionally, as data work covers a broad scope, involves diverse entities and faces complex situations, we need to stimulate the driving forces of all parties and explore governance rules, methods and tools tailored to data characteristics, thereby improving governance effectiveness. For another example, data is both the result of and the resource for advancing digitalization, networking and intelligence. We need to accumulate data resources from digital transformation while deepening it through data development and utilization, with the aim to achieve positive interactions and coordinated development. What's more, it's challenging to balance data development and security. We should strengthen policy support for data development while adhering to data security laws and regulations, actively encouraging trials and exploring innovative development models. As such, to promote reforms related to the market-oriented allocation of data elements, we must rely on reform and innovation and harness the momentum of deepening reforms.
As part of our efforts to thoroughly implement the guiding principles of the third plenary session of the 20th CPC Central Committee, we will focus on reforms related to the market-oriented allocation of data elements, improve the market system and rules for data elements, foster an integrated national market for data, and promote the development and utilization of data elements.
We will adhere to the principle of "establishing the new before abolishing the old," and build and improve basic systems for data. With a focus on system building, we will strengthen top-level design and overall planning, work to formulate policies related to data property rights, circulation and trading, income distribution, and security governance, and expedite the construction of basic systems that accommodate the characteristics of data elements, align with market rules and meet development needs.
We will give full play to the pioneering spirit at the community level and advance data infrastructure construction. We will accelerate the development of a nationally unified computing network and data infrastructure. Just as food requires a cold chain, infrastructure is also necessary for data circulation. We will support local pilot projects to create a "cold chain" for data.
We will adhere to a problem-oriented approach and remove bottlenecks constraining data development and utilization. We will focus on addressing concerns regarding compliance in data supply and utilization, continuously explore new paths for developing and utilizing public data and enterprise data, vigorously promote the "Data Element X" initiative, and tap into and unleash the value of data elements.
We will stimulate and enhance social vitality to strengthen and expand the data industry. We will leverage market mechanisms more effectively, foster and expand data enterprises, improve the data circulation and trading ecosystem, and cultivate a competitive, orderly, prosperous and dynamic data industry.
We will promote reform through opening up and strengthen international cooperation in the digital economy. We will pragmatically engage in mutually beneficial digital economy cooperation, strengthen cooperation platform construction, actively participate in the formulation of data governance rules, and develop new institutions for a higher-standard open economy. Thank you.
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CNR:
As the digital foundation for Chinese modernization, computing infrastructure has always gained much attention. What has the NDA done to accelerate the construction of a unified computing network around the "East Data, West Computing" project? What are the considerations and plans for the next step? Thank you.
Liu Liehong:
Let's invite Mr. Du to answer your question.
Du Wei:
Thanks for your question. In the digital economy era, computing power is a new quality productive force. To optimize the distribution of productive forces and give full play to the energy advantages of China's western regions, the country proposed the "East Data, West Computing" project. This initiative is based on a comprehensive consideration of factors, including energy supply, geological conditions, climate and environment, data transmission distances, and existing industrial infrastructure. In February 2022, China officially launched the project. This involved initiating the construction of national computing hub nodes in eight locations: the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, the Chengdu-Chongqing region, north China's Inner Mongolia autonomous region, southwest China's Guizhou province, and northwest China's Gansu province and Ningxia Hui autonomous region. Additionally, the project outlined plans for 10 national data center clusters.
Over the past two years, with the joint efforts of relevant departments and computing hub nodes, the "East Data, West Computing" project has made positive progress. As of the end of March this year, more than 1.46 million standard server racks have been installed in 10 national data center clusters, with the overall utilization rate reaching 62.72%, an increase of 4 percentage points over 2022. Network latency between eastern and western hub nodes has generally met the 20-millisecond target. Green power use in these data centers exceeded the national average, with the utilization rate of green power in some advanced data centers reaching about 80%. The power usage effectiveness (PUE) of newly built data centers dropped to as low as 1.10. The implementation of the project has driven growth in related industrial chains, including IT equipment manufacturing, information communication, basic software and green energy. It has also improved the overall level of national computing power.
At the end of last year, we worked with relevant departments to release an implementation plan to speed up the construction of a national computing power network. Five key tasks are outlined in the plan, including coordinating general computing power, intelligent computing power and supercomputing power; coordinating the layout of eastern, central and western regions and large, medium and small cities; coordinating the application of computing power, data and algorithms; coordinating the construction of computing power and green electricity; and coordinating the development of computing power and security. The national computing power network is an expansion and deepening of the "East Data, West Computing" project. It aims to promote efficient, coordinated scheduling of computing resources nationwide and form cross-regional and cross-departmental synergy. This development will provide inclusive, easy-to-use, low-cost, green and secure public computing services for all aspects of economic and social life.
The plan includes specific targets that require greater efforts to achieve. For example, by the end of 2025, new computing power in national hub nodes should exceed 60% of the national total, and green power should account for over 80% of power consumption in new data centers at these hub nodes. Next, we will work with relevant departments and localities to accelerate the construction of a national computing power network. This initiative aims to drive high-quality economic development through advanced computing power. Specifically, it promotes the coordinated development of multi-source heterogeneous computing power and concentrates various new computing capabilities at national hub nodes. It also encourages 400G/800G high-bandwidth all-optical connections between national hubs and demand areas. This includes guiding telecom operators to improve the efficiency of "public transmission channels" and promoting the deep integration of computing and networking. The plan promotes coordination between industry data and computing power, ensures reliable data circulation, and improves data processing capabilities and governance. It also promotes the integrated development of computing power and electricity, strengthening synergy between hub and non-hub nodes. This includes supporting non-hub nodes in the central and western regions rich in green electricity resources to integrate into the national computing power network. Finally, the plan aims to improve the security capabilities of the national computing power network and ensure that high-quality development and greater security reinforce each other.
That's all for my answer. Thank you!
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Yicai:
The NDA recently announced that this year it will successively release policy documents on data property rights, data circulation, revenue distribution and security governance, increasing policy provision. Could you please introduce the work objectives and specific arrangements? Thank you.
Liu Liehong:
I'd like to invite Ms. Luan to answer your questions.
Luan Jie:
Thank you for your question and for your attention to basic data systems. The construction of basic data systems is an important measure for further deepening comprehensive reforms and is a long-term, complex and systematic project. The third plenary session of the 20th Central Committee of the Communist Party of China explicitly called for accelerating the establishment of systems for data property rights attribution, market transactions, proceeds distribution and interests protection, enhancing data security governance and regulatory capabilities, and creating an efficient, convenient and secure mechanism for cross-border data flows. Since the establishment of the NDA, we have prioritized advancing the construction of basic data systems. We are expediting the drafting of policy documents related to data property rights, circulation and transactions, proceeds distribution and security governance. Our goal is to establish and improve basic data systems that create favorable conditions for "data to be available, to flow smoothly, to be used effectively and to be securely protected," continuously enhancing the systemic, holistic and coordinated nature of the market-oriented allocation reform of data elements.
First, we focus on addressing practical challenges by providing specific, clear and actionable rules and guidelines. In response to societal expectations for data property rights attribution, we are widely soliciting issues and difficulties in the field of data property rights from across the country. We conduct in-depth research, seek advice at the grassroots level and refine the rights of data ownership, usage and management to provide institutional guarantees for data supply, circulation and utilization. We emphasize studying specific countermeasures individually, aiming to provide concrete, clear and operationally effective property rights allocation solutions to help all parties confirm their respective rights.
Second, we are committed to promoting circulation and usage to support the cultivation of new quality productive forces and foster high-quality development. Currently, there is a widespread belief that the data element market is still in the phase of "expanding the market," with improvements needed in the scale, efficiency and rules of data circulation and transactions. To cultivate a unified national data market, efforts should focus on building a data circulation and transaction system and setting developmental goals for data circulation and transactions. Regarding the construction of the proceeds distribution system, we place greater emphasis on building incentive mechanisms, utilizing price formation mechanisms and fully mobilizing the enthusiasm, initiative and creativity of all parties involved.
Third, we focus on strengthening pilot explorations to ensure that policies and systems are both derived from practice and effectively guide practice. The data field is evolving rapidly with swift innovation, with policies and systems often lagging behind practical development. Therefore, we will make concise deployments for areas where the path is clear and use pilot programs to explore and advance areas where consensus has not yet been reached. Based on the results of pilot explorations and industry practices, we aim to develop institutions.
In addition, we uphold the security bottom line to resolutely safeguard national security and protect both personal information and business secrets. We aim to better coordinate development and security, explore new security governance mechanisms and integrate security throughout the entire process of data supply, circulation and utilization.
Currently, various documents are being refined promptly. Moving forward, we will implement the tasks and deployments outlined by the third plenary session regarding the construction of basic data systems. Following the principle of finalizing and releasing each document as it is ready, we will advance the issuance of these documents to provide institutional guarantees for unleashing the potential of data elements as well as supporting high-quality economic and social development.
That's all for my response. Thank you.
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Xinhua News Agency:
As Mr. Liu just introduced, preparations for the China International Big Data Industry Expo 2024 are already underway. What are the differences between the big-data expo this year and in previous years? Can you introduce this year's highlights and special events? Thank you.
Liu Liehong:
I will take these questions. Thank you for your interest in the Big Data Expo. This year's Big Data Expo is the first to be organized by the NDA and hosted by the People's Government of Guizhou Province. The Big Data Expo has been held for 10 sessions since 2015. With years of experiences, the Big Data Expo has become an important platform for bringing together industry elite, setting the pace for avant-garde trends as well as pooling global resources.
This year's Big Data Expo is scheduled to be held in Guiyang city, Guizhou province from August 28 to 30. We hope that people from all walks of life will pay more attention to and participate in the expo. Themed around integrating digital and intelligent technologies to reshape the future and realize high-quality development of the digital economy, this year's expo features professional exhibitions, releases of achievements, industry exchange activities and serial special events. We hope that, by holding the Big Data Expo, we can further promote the high-quality development of the digital economy, fully tap the potential of data, contribute to building a digital China and take the data industry to new heights.
This year, with a greater emphasis on professionalism, we will invite relevant national ministries and commissions to release a number of high-level, distinctive and influential industry research reports, technical norms, typical cases, etc. Among them, the NDA will also release a series of achievements. This year's Big Data Expo will also be centered on three key areas, namely, the new frontier of the digital economy, basic data systems as well as data empowerment, focusing on industrial development, data space, international collaboration, artificial intelligence (AI), digital transformation, data circulation, digital governance, digital villages, computing power coordination, data security and other themes to carry out industry exchange activities, and select and release major leading sci-tech achievements.
This year, we will also highlight the service aspect, continue to foreground participating enterprises and carry out various activities such as product promotion, trade negotiations, cooperation exchanges and observation tours. We hope that, through the platform of the Big Data Expo, we can build bridges for more enterprises and help Chinese and foreign enterprises find opportunities for business cooperation.
This year we will also highlight the diversity of exhibitions. The theme of high-quality development of the digital economy will run through the entire process and every link of the expo. Six themed exhibition sections will be set up and will cover digital industry, integration of digital and real economy, data trading, digital governance, digital infrastructure and data security. We will invite data, industry, agriculture, finance and other sectors and institutions both at home and abroad to participate. The latest development dynamics, achievements and cutting-edge trends of the domestic and foreign data industries will be fully on display, so that all sectors of society can gain tangible benefits through the Big Data Expo.
Thank you.
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Red Star News:
We have noticed that there are still some bottlenecks that restrict the availability, flow, usage and security of data. Regarding the issue of availability, what attempts and efforts have been made to expand the supply of public data? What are the plans for the next stage? Thank you.
Liu Liehong:
I would like to ask Mr. Zhang to answer these questions.
Zhang Wang:
Thank you for the question. Public data is generated by government departments at various levels and relevant enterprises and institutions while performing their duties and providing public services. This data is characterized by its strong foundation, relatively standardized management, and high economic and social value. As a result, both the market and society have placed great expectations on its potential. Currently, public data resources are developed and utilized in three main ways: sharing, opening, and authorized operation. Sharing refers to data sharing and exchange between government departments at various levels. This practice is mainly used to address information asymmetry between different departments and regions, helping governments at all levels better perform their duties and serve enterprises and the public more effectively. In recent years, the State Council has issued six batches of data-sharing responsibility lists, supporting services such as "one visit at most," "online services," and "one-stop government services." Opening refers to making public data or datasets available online, primarily to facilitate free access for enterprises and the public. According to relevant institutions, 226 localities nationwide have established public data platforms, including at the provincial and municipal levels, offering over 340,000 datasets. However, some data resources, while economically valuable, are sensitive. These need to be processed appropriately to ensure security while serving economic and social development. For such data, some regions and departments have begun providing services through authorized operations, accumulating some experience. However, there is still a need to strengthen policy guidance to both support development and regulate operations.
To better promote the development and utilization of public data resources, the NDA will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee. We will focus on better leveraging market mechanisms to improve the efficiency and effectiveness of public data resource allocation and utilization in several areas. On the one hand, we will continue to enhance government data sharing and public data openness. On the other hand, we will treat authorized operations as an important supplement to sharing and openness, resolving unclear responsibilities in data supply and usage management and insufficient motivation for data provision. Our main approach is to promote the reform of public data resource management and operational mechanisms. We aim to clarify the responsibilities and obligations for data supply, usage and management, stimulating motivation for data provision and market innovation. We are establishing a public data resource registration system, standards for authorized operations, and corresponding information disclosure mechanisms. We're also clarifying compliance policies and management requirements while cooperating with relevant departments to enhance oversight of public data product and service pricing. For public data in governance and public welfare, we advocate conditional free use. We will also support and cooperate with various regions and departments to intensify the development and openness of public data resources. By promoting collaboration between ministries and provinces, as well as government and enterprises, and launching partnerships with relevant departments, regions, and operating entities, we aim to jointly create a positive ecosystem for data resources that ensures they are readily available, easily circulated, effectively used, and securely protected.
That concludes my answer. Thank you.
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China Financial and Economic News:
The third plenary session of the 20th CPC Central Committee proposed the construction and operation of national data infrastructure to promote data sharing. What measures has the NDA taken to advance data infrastructure construction, and what specific work will be undertaken going forward? Thank you.
Liu Liehong:
Mr. Du, please answer the questions.
Du Wei:
Thank you for your questions. As you mentioned, the third plenary session of the 20th CPC Central Committee issued relevant plans on the matter. Data infrastructure serves as the foundational support for the implementation of basic data systems and the efficient development and utilization of data. It is an important instrument for comprehensively promoting the high-quality development of a digital China, the digital economy and the digital society.
Specifically, the construction of data related infrastructure is based upon networks and computing facilities and involves the full cycle of data development and utilization, including data aggregation, processing, circulation, application, and operation, with the aim to utilize data as a productive factor and a kind of resource so as to create value. The construction of data infrastructure is the systematic integration of project construction and institutional development. It covers not only the development of facilities such as platforms and systems, but also designs of standards and norms, and mechanisms and systems. Additionally, it encompasses the application of technological innovations in privacy protection and data identification registration.
Over the past few years, various regions, industries and sectors have actively explored the construction of data infrastructure, resulting in the development of multiple technological solutions to privacy calculus, data spaces, blockchain and data switching service networks. These efforts have laid a solid foundation for the integrated construction of data infrastructure. Recently, the NDA has been organizing the formulation of guidelines on the construction of data infrastructure. This aims to clarify the concept, development vision and construction goals of data infrastructure under present conditions, build a social consensus, define construction directions and promote the establishment of a collaborative, large-scale, efficient, standardized and reliable data infrastructure service system.
Currently, we are focused on the circulation and utilization of data, targeting key industries and typical application scenarios. Based on unified directory identification, unified identity registration and unified interface requirements, i.e. a unified infrastructure foundation, we are deploying and initiating pilot projects for various technological approaches such as privacy calculus, data spaces, blockchain and data switching service networks. We plan data circulation and utilization infrastructure projects from the top down, supporting different cities in taking the lead in trials. By using real-world scenarios to drive technological advancements, we aim to enrich the supply of solutions and promote the efficient and trustworthy circulation and utilization of data across departments, levels, regions and entities.
In conclusion, the construction of the data infrastructure system is a long-term and systematic endeavor. Going forward, we will continue to advance the development of the data infrastructure system by placing greater emphasis on system integration, focusing on key priorities and achieving effective reforms, as required. The aim is to make new contribution to fully unleashing the potential of data elements and achieving their value. We welcome suggestions from all sectors of society, and invite everyone to jointly explore the mechanisms, paths and solutions for data infrastructure construction and contribute their wisdom to the high-quality development of the economy and society and the building of a digital China.
Thank you.
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CCTV:
We have noted that this year's government work report highlights the deepening of innovative development in the digital economy. Since the data industry is an important part of this, what measures will the NDA take next to cultivate and expand the data industry? Thank you.
Liu Liehong:
I would like to invite Mr. Zhang to answer your question.
Zhang Wang:
Thank you for your question. Cultivating the data industry is a crucial aspect of the reform of the market-based allocation of data elements. It is also an important link in nurturing the digital economy and developing new quality productive forces. Many people are concerned about what the data industry entails and what forms it includes. We understand the data industry as an emerging industry formed by using data technology to develop data resources into products and services. The main players in this industry, according to our understanding, include enterprises engaged in data technology innovation, resource development and utilization, and data technology-empowered applications. Also included are enterprises involved in the circulation and trading of data products and services, as well as those engaged in the construction of data infrastructure.
It's important to recognize that data technology is advancing rapidly, and the data industry is continually evolving. We will closely monitor these changes to ensure we formulate better policies. Our commitment to nurturing and developing the data industry stems from several key factors:
First, data is a critical production factor. Its economic value is immense, and when utilized correctly, it can significantly enhance the allocation efficiency of other production factors such as labor, capital and technology. Therefore, whether the goal is nurturing new economic drivers or improving total factor productivity, accelerating the development of the data industry is essential to harness data's full potential and energy.
Second, the true value of data only emerges when integrated into economic and social activities. This integration relies on collection, storage, computation, management and application of data, as well as the circulation and trading of data products and services. Thus, it is important to cultivate a group of market players in the areas of technological innovation, resource aggregation, application empowerment, circulation and trading, and infrastructure development.
Third, while the data industry is intrinsically linked with the information and communication technology and internet industries, it possesses unique development characteristics. Current policies supporting high-tech and software companies do not adequately address the needs of data enterprises. By classifying the data industry as an emerging industry and formulating targeted policies, we can better address market concerns, enhance the sense of gain among data enterprises, and align with the laws of technological and industrial development. This approach will effectively pool resources, nurture a group of robust market entities, and enhance the industry's competitiveness.
The NDA places great importance on cultivating the data industry. In implementing the guiding principles from the third plenary session of the 20th Central Committee of the CPC, we are developing policies to promote the industry by leveraging market mechanisms and creating a fairer and more vibrant market environment. On the one hand, we are defining the nature and scope of the data industry, catering to market demands, and nurturing diverse market players. On the other hand, we are maximizing the decisive role of the market in resource allocation and supporting companies in accelerating development in areas such as resource aggregation, technological breakthroughs, product and service offerings, circulation and trading, and infrastructure development. Additionally, we recognize the importance of effectively utilizing policy instruments to facilitate appropriate arrangements in investment plans, talent development and industrial clustering. Many companies have actively involved in the policy drafting process, highlighting the market's keen anticipation in nurturing and expanding the data industry. Building upon thorough research and comprehensive consultations, we will speed up the introduction of supportive policies for the industry's growth.
That's all I have to say on this matter. Thank you.
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Hong Kong Economic Herald:
I am particularly interested in China's international cooperation in the digital economy. Could you please share what work the NDA has done in this area? Furthermore, how is the administration planning to align with current development trends to further strengthen international exchange and cooperation in the field? Thank you.
Liu Liehong:
Thank you for your interest in international cooperation in the digital economy. I will answer this question. Data has become a fundamental resource and innovation driver for global economic development. The digital economy and green development are now key areas of focus and cooperation for countries worldwide. The NDA is responsible for promoting international cooperation in the data field and participating in the formulation of international digital governance rules.
Since its establishment, the NDA has actively fulfilled its responsibilities. We've strengthened intergovernmental data trust and signed memorandums of understanding on the digital economy with over 10 countries, fostering pragmatic cooperation in this field. In June, we hosted the inaugural meeting of the China-Singapore Digital Policy Dialogue Mechanism in Beijing, engaging in thorough exchanges and cooperation on issues such as cross-border data and artificial intelligence. We've also been actively implementing the eight major steps for supporting high-quality Belt and Road cooperation and the Beijing Initiative for Digital Economy Cooperation. We're further aligning with international rules by participating in Digital Economy Partnership Agreement (DEPA) and the UN Global Digital Compact negotiations. Additionally, we're collaborating with relevant international organizations to establish standards in the data field. We're also committed to creating a favorable environment for the development of Chinese and foreign digital enterprises. We support and encourage Chinese companies, especially those in the digital sector, to expand their brands and quality products and services internationally, and to provide good solutions and experiences for digital transformation worldwide. We also remain committed to addressing practical issues for foreign companies in China and providing high-quality services. We welcome companies from all over the world to participate in China's process of marketizing and valorizing data elements, sharing in the dividends and opportunities of development.
Thank you.
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National Business Daily:
At the end of 2023, the NDA released the "Data Elements X" Three-Year Action Plan (2024-2026), aimed at fully stimulating the potential of data elements. Could you please provide an update on the progress made in implementing this plan over the past six months? Additionally, what are your future work plans in this area? Thank you.
Liu Liehong:
I'll invite Ms. Luan to answer this question.
Luan Jie:
Thank you for the question. First, let me elaborate on the "multiplier effect" of data elements. This concept refers to data's role as a factor of production in large-scale socialized production. Data elements enhance overall factor productivity by synergizing with other factors of production, such as capital, land and labor. Moreover, data generates diversified value increments through multi-scenario applications and reuse by multiple entities. The fusion of diverse data catalyzes new industries and business models, triggering a multiplier effect on economic output. This phenomenon demonstrates the significant driving force that data, as a factor of production, exerts on economic development.
At the end of last year, the NDA, in conjunction with relevant departments, issued the "Data Elements X" Three-Year Action Plan (2024-2026). Since its implementation, and with the concerted efforts of various departments and localities, we have seen the development and utilization of data successfully driving data supply and circulation. We have made initial progress toward our set goal of using "effective utilization" to drive "sufficient supply" and "smooth circulation" of data.
We are witnessing a continuous enrichment of data-empowered scenarios. We launched a call for "Data Elements X" case studies, which received an enthusiastic response. At the seventh Digital China Summit, we unveiled an initial batch of 20 case studies, showcasing exemplary experiences across 12 industry sectors. By highlighting the integrated application value of data elements across different industries, we aim to continuously stimulate enthusiasm for data development and utilization.
We continue to stimulate innovation in data utilization. The development and utilization of data rely on the coordinated efforts of typical scenarios, high-quality data and innovative resources. In early May this year, we launched the 2024 National "Data Elements X" Competition, providing a platform for competitive exchange on data element development and utilization. To date, 28 localities have initiated local competitions, with each area focusing on practical issues and highlighting its own unique characteristics.
We are accelerating the exploration of data utilization mechanisms. We are addressing challenges faced in various industries regarding data element application, including insufficient supply, poor circulation and unclear application benefits. We are working with relevant departments to jointly research and formulate pilot plans for key industry sectors. These efforts aim to explore new pathways for data development and utilization that are industry-specific and adaptable to different scenarios.
Moving forward, the NDA will collaborate with relevant government bodies to implement the following three tasks. First, we will continue identifying and publishing exemplary cases regarding the use of data as a factor of production. We will release the second batch of such cases during the upcoming Big Data Expo in August, further leveraging their pioneering and demonstrative role. At the same time, we will also launch the national finals for data use solutions in October. The final will draw on experience from various competitions across the country, exploring excellent data use solutions that are valuable, effective and applicable to other areas, in a bid to continuously diversify the enabling environment for data use. Furthermore, we will establish more pilots for data use. Focusing on the tasks of implementing policies, promoting supply, ensuring circulation and demonstrating effectiveness, we will work with relevant government departments to publish and implement pilot plans on data use in key sectors.
That covers everything for now. Thank you.
Xing Huina:
Due to time constraints, we will take one last question.
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The Poster News APP:
Small and medium-sized enterprises (SMEs) are a key focus of the overall digital transformation drive. While SMEs in China are expediting their digital transformation efforts, they still face certain challenges. How can we address these challenges? Thank you.
Liu Liehong:
Thank you for your interest in SMEs' digital transformation. I'll take this question. We believe that smart and digital transformation reflects the overwhelming trend of development, and it is a necessity for SMEs. In recent years, the digital transformation of SMEs in China has shifted from theoretical plans to large-scale practice, evolving from a policy-driven approach to a value-driven strategy. While many businesses have made significant progress, challenges remain. Companies that excel in this area are often those with strong core competitiveness, marketable products and high-cost performances. These companies also emphasize the enabling role of digital measures, focus on key areas such as design, production, sales and services, and achieve high effectiveness in business operation, management and related services. Therefore, we believe that SMEs' digital transformation should focus on two aspects. First, SMEs need to enhance their capacities for innovation. For SMEs, strengthening sci-tech innovation means using digital technologies to improve their efficiency in research and development, production as well as sales and services, thereby building core competitiveness. In the meantime, SMEs need to make their products smarter and more digital, further improving their sustainable development capacity in aspects concerning smart delivery measures and brand building. Second, SMEs need to strengthen the use of data throughout the industrial chain. As SMEs often face insufficient data supply, we need to further leverage data's role to connect and drive innovation. We need to enhance data integration throughout the industrial chain. We also need to create a data circulation and utilization system where leading enterprises play a dominant role and upstream and downstream enterprises help in transforming this system in a coordinated manner, in a bid to provide targeted solutions tailored to specific enterprises. .
Moving forward, the NDA will collaborate with relevant state organs to continue creating a conducive environment for SMEs' digital transformation. To strengthen policy support, we will enhance inter-departmental coordination and build synergy. We will launch and implement related digital transformation projects, promote digital transformation in key sectors and improve public service platforms for various regions, industrial parks and industrial clusters. We will provide more solution and services, supporting leading enterprise and third-party digital service providers to build comprehensive platforms that facilitate digital transformation, in a bid to promote coordination across industrial chains. To further leverage the enabling role of data, we are studying and formulating policies concerning the development and utilization of business data resources. We will improve the efficient supply of public data resources. In accordance with market principles, we will also promote the joint development and utilization of business data among enterprise of all sizes, so as to continuously meet the data resource needs of SMEs and other enterprises. We will further implement the three-year action plan to promote the use of data as a factor of production and enhance SMEs' capacity in data utilization, aiming to reduce costs while increasing efficiency. To create an environment for digital transformation, we support relevant parties in developing digital products, services and solutions that are small-scale, easy to use, portable and precisely suited to the need of SMEs. In this way, we aim to create an ecosystem for digital transformation that integrates supply and demand, highlights collaboration throughout the industrial chain and features value-driven approaches. We also encourage and support internet platforms and leading enterprises to leverage their strengths by opening their digital resources and transformation measures to SMEs, thus helping SMEs to achieve digital transformation. Thank you.
Xing Huina:
This concludes today's press conference. Thank you to Mr. Liu Liehong, the other three spokespersons and our friends from the media. Goodbye, everyone.
Translated and edited by Xu Xiaoxuan, Wang Ziteng, Yang Xi, Liu Caiyi, Yan Bin, Lin Liyao, Qin Qi, Xiang Bin, Liao Jiaxin, Zhu Bochen, Wang Qian, Ma Yujia, Wang Wei, Wang Yanfang, Yuan Fang, Liu Sitong, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
