
CHINA’S DATA STRATEGY | CREATING A STATELED MARKET
data to enhance their business models. On another
side of the triangle, individuals want restrictions on
data collection to better protect their privacy, and
they need guarantees that the data that companies
and governments hold on them will not be used to
harm or control them. On the third side of the trian-
gle, various government agencies, as in many coun-
tries around the world, are pushing for increasing
data collection on the population so that they can
better oversee and control citizens’ and companies’
behaviour. Governments also seek to arbitrate be-
tween corporate and individuals’ interests (12).
WHO WILL OWN
CHINA’S DATA?
A data market, like other sectors of the Chinese econ-
omy, is understood in a very specic way: under
China’s ‘socialist market economy’ (13), the govern-
ment has a signicant role in dening rights and
rules but recognises that letting players freely inter-
act within this state-dened framework is most ef-
cient. With this in mind, Chinese policymakers are
now starting to call for a legal system that creates
and denes data property rights, thus allowing data
to become a tradable commodity that can be bought
and sold on data trading platforms.
Creating a data ownership regime
is controversial. Data has unique
properties that make such an en-
deavour dicult: unlike tangible
goods, data can be reproduced and
disseminated at will. A creative and
original eort, which is often the
legal prerequisite for an object to
be recognised as 'intellectual prop-
erty', is not necessarily required to
assemble a database. After years of heated discus-
sions, the United States and the EU have not yet cre-
ated such a data ownership regime. While proponents
of the idea argue that it would create incentives to
generate and share data, critics contend that it would
stie the growth of the digital economy, hinder the
movement of data and accelerate data monopolisa-
tion (a process whereby a company acquires a domi-
nant position across multiple sectors as a result of its
capacity to hoard data on a very large scale) (14).
The topic is also contentious within China. As it is a
technical issue on which legislation is still in the early
stages, there is room for public discussion and disa-
greement, which have been expressed openly in aca-
demic and news articles. But there has been, over the
past two years, consistent and high-level support for
introducing data property rights. The 14th ve-year
plan released in March 2021 – a high-level roadmap
of the country’s development covering 2021–2025 –
called for ‘establishing and improving data proper-
ty rights transactions’ (15). The ninth meeting of the
Central Finance and Economics Committee in March
2021 once again called for ‘strengthening the con-
struction of the data property rights system’ (16).
Dening data ownership rights, according to pro-
ponents of this legislative eort, would have sev-
eral benets. It would encourage the circulation and
sharing of data and help eliminate barriers to data
usage. Companies would not be afraid to share data
if they knew property over it was protected by law
from appropriation and abusive copy. In addition,
it would lead to a better distribution of wealth and
benets derived from data usage, by enabling the es-
tablishment of a taxation system based on data as-
sets, for example. It could also break down natural
data monopolies and ensure fair market competition
by allowing smaller players to monetise their data
rather than losing it, or to buy data they need from
tech giants.
Although China’s data ownership regime is still in its
early stages, discussions among scholars, speeches
by policymakers and local legislation hint at what it
could look like. Most commentators agree that a data
ownership regime should allow for non-exclusivity
and multistakeholder joint ownership, with dier-
ent data subjects and data processors exercising dif-
ferent rights over data according to
their role in generating, maintain-
ing and using it.
Under this framework, individuals
have been granted substantive pro-
tection from harmful corporate data
practices, with privacy provisions
very similar to the EU’s general data
protection regulation (GDPR). But
Chinese experts and policymak-
ers also advocate a business-minded framework in
which data ownership rights sensu stricto would be re-
served to large databases held by businesses and not
extended to individuals’ personal data. This would
mean that individuals would not be able to monetise
or derive income from their personal information,
but they would enjoy ‘negative rights’, for example
the rights to refuse to grant authorisation to use their
information, to delete it, to access it or to rectify it.
By contrast, enterprises collecting data would enjoy
the rights to manage, use and derive income from
the data they held – under certain conditions. One
such condition is that the data collection either was
authorised by the individuals that the data concerns
(the data subjects) or responded to a limited set of
necessary business purposes. Alternatively, busi-
nesses can freely use the data they have collected as
Chinese
policymakers are
now starting to call
for a legal system that
creates and denes
data property rights.