EconoScope | China launches new phase of digital infrastructure development

(ECNS) -- China on Monday issued a guideline on building a unified national data market and developing the digital economy, marking the beginning of a new phase in building data-centric digital infrastructure.

Mei Hong, an academician at the Chinese Academy of Sciences, explained that data from various transportation modes like buses, taxis, and subways are currently managed by independent information systems, creating isolated data silos.

Integrating and sharing this data across systems requires interoperability. Therefore, a new type of data-centric infrastructure is needed to enable seamless online connectivity, according to Mei.

In the era of agricultural economy, infrastructure was centered on irrigation and farmland systems. During the industrial economy era, key infrastructure expanded to include highways, railways, ports, airports, and power systems. Now, in the digital economy era, digital infrastructure is built on network facilities, computing power systems, and application platforms.

Du Wei, director of the Department of Digital Technology and Infrastructure Construction (DDTIC) under China’s National Bureau of Statistics (NBS), emphasized that the world has entered an era where data serves as a critical factor.

Du believes that this shift places new and higher demands on infrastructure, making the construction of national data infrastructure pivotal to unlocking the value of data in the modern age.

China has already made progress in building data infrastructure.

Li Jianguo, deputy director of the DDTIC, pointed out that the China Meteorological Administration’s meteorological science data-sharing platform has provided 12 petabytes (PB) of data products for 21 of China’s industry sectors and 132 countries worldwide.

The guideline outlines a three-phase plan for developing data infrastructure. By 2029, China aims to complete building the main structure of a national data infrastructure, ensuring robust coordination and a streamlined system for its construction and management.

Me said that building a unified national data market is fundamental and strategic for the development of the digital economy, serving as a critical pillar for its healthy growth.

The construction of data infrastructure will enhance data circulation and utilization, unlocking the immense value of data.

In 2023, the added value of China’s core digital industries accounted for approximately 10 percent of GDP, with a total data output of 32.85 zettabytes. According to research, a 10 percent increase in data flow can drive a 0.2 percent rise in GDP, while boosting profits across industries by an average of 10 percent.

Shen Zhulin, deputy director of the NBS, stated that national data infrastructure will drive data circulation and utilization while advancing the upgrade of facilities in networks, computing power, and security.

According to Shen, preliminary industry estimates suggest that data infrastructure will attract direct annual investments of approximately 400 billion yuan ($54.56 billion), with a total investment of around 2 trillion yuan over the next five years.

Du stated that China will continue to increase investments through central budget allocations and ultra long-term pecial government bonds.

He said that Chinese efforts will also focus on guiding regions and departments to prioritize data infrastructure in planning, funding, and research initiatives, while encouraging private capital to participate in the construction of national data infrastructure.