Analysis: Beyond security crackdown, Beijing charts state-controlled data market

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China's sweeping regulatory action against internet giants such as ride-hailing firm Didi Global Inc, which has sent chills through the industry, ...

China's sweeping regulatory action against internet giants such as ride-hailing firm Didi Global Inc, which has sent chills through the industry, is part of a broader national project to create a domestic marketplace for the country's vast troves of big data.

Data is becoming a critical battleground between China and the United States, compelled by fears on both sides that unchecked collection by private firms could allow state actors to weaponise information on infrastructure and other national interests. Such information could encompass just about any type of data - from health records and court documents to maps and shopping histories.

The project was supercharged in April 2020, when a State Council document declared data would be the fifth"factor of production" - on par with labour, technology, land and capital in terms of national economic resources."They're playing four-way chess here," said Samm Sacks, a cyber policy fellow at think tank New America.

The powerhouse province of Guangdong last week announced plans to launch one such platform by year-end to trade and oversee the movement of data, including a customs hub for international transfers.Globally, governments have been wrestling over how to manage internet platforms and their vast power, based on their extensive collection of user data.

One Chinese tech stock index has tumbled 40per cent from highs early this year on a widening regulatory crackdown ranging from anti-competitive practices to data security.

 

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