Freer data flows to boost innovation

Sustained efforts to curb data monopoly and promote freer flow of data among Chinese companies can stimulate technological innovation and enable more breakthroughs, said lawmakers and political advisers at the two sessions.

“The value of data cannot be maximized if a certain company uses it exclusively. Data from various departments, fields and industries need to be fully combined and correlated,” said Yi Tong, a researcher at the Beijing Academy of Science and Technology and a deputy to the 13th National People’s Congress.

Currently, most of the leading companies or platforms, especially from the internet sector, have cultivated a massive chunk of users and enjoy a sort of monopoly in data collection and use. There are no clear rules on data circulation and the existing laws are not enough for data’s proper utilization and curbing monopolies, she said.

“It is especially important when China is accelerating informatization and calling for continuous breakthroughs in technologies such as chips and operating systems. Without proper data flows, companies cannot foster further technological innovations,” said Yi.

According to Yi, a flexible data flow policy will help China to gain an edge in global competitiveness, especially as economies like the United States and Europe have already started to leverage their data.

The US launched an action plan last year to make data a strategic resource, while Germany has proposed an action plan to build a standard communication structure for safe data circulation.

Yi said industry and information technology authorities should take steps to ensure safe and controllable data flows, while cybersecurity authorities should standardize the behavior of enterprises using the data to prevent the misuse of personal and private information.

During the 13th Five-Year Plan period (2016-20), the country’s data factor market, which includes data collection, cleanout, labels and transactions, rose rapidly. The compound annual growth rate of the data factor reached around 54.5 billion yuan ($8.37 billion) last year, according to an industry report.

Robin Li, chairman and CEO of internet search giant Baidu Inc, made a suggestion for enhancing data opening and sharing of internet platforms to help netizens access information more conveniently.

“Relevant authorities should select fields that are closely related to people’s access to information services for pilot programs, such as news, and build information sharing mechanisms between different internet platforms,” said Li, who is also a member of the 13th National Committee of the Chinese People’s Political Consultative Conference.

“More efforts are necessary to break down the existing information barriers and promote the free flow of information and knowledge, and then gradually guide and regulate the return of an open internet ecosystem to improve user experiences,” he said.

Li said that authorities should enhance data opening-up and security supervision of internet platforms, evaluate the information openness and sharing and information quality of each platform.

Gan Lin, a member of the 13th National Committee of the Chinese People’s Political Consultative Conference, called for the creation of an open and mutually beneficial cooperation system on big data and blockchain technologies.

Last year, China proposed the Global Data Security Initiative, which calls on all countries to protect the openness, safety and stability of the global supply chain and says information technology should not be abused to damage and steal infrastructure data from others.

“More efforts should be made to promote the construction of the Guangdong-Hong Kong-Macao Greater Bay Area to become a pilot for the opening up of the digital economy and when mature, further expand it to countries and regions participating in the Belt and Road Initiative,” said Gan, who is also the deputy head of the State Administration for Market Regulation.

The value of data cannot be maximized if a certain company uses it exclusively. Data from various departments, fields, and industries need to be fully combined and correlated.”

Yi Tong, a researcher at the Beijing Academy of Science and Technology