China is accelerating efforts to boost its digital economy with a strategic focus on public data resource development. On October 10, Liu Liehong, Director of the National Data Administration, provided an in-depth interpretation of the Opinions on Accelerating the Development and Utilization of Public Data Resources, issued by the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council. Liu emphasized that public data resource development relies heavily on infrastructure support and collaboration from various sectors, with finance being a critical enabler.

Boosting Data Infrastructure Construction

The Opinions set out clear directives to encourage financial institutions to innovate their products and services, enhancing financing support for data-centric enterprises and data infrastructure companies. The goal is to foster the orderly participation of private capital in public data resource development.

Wang Peng, a research fellow at the Beijing Academy of Social Sciences, remarked, “Data-centric enterprises and data infrastructure companies are integral components of a new type of productivity. Data-centric companies focus on the collection, processing, and analysis of data to unlock its potential value, thereby driving industrial upgrades and economic development. Meanwhile, data infrastructure companies provide the technical backbone for data storage, transmission, and processing, enabling efficient data flow and value realization.”

Pan Helin, a member of the Information and Communications Economic Experts Committee at the Ministry of Industry and Information Technology, further noted that while not all enterprises in these fields meet the criteria for new-type productivity, many are distinguished by their high levels of innovation and technological content.

However, both data-centric enterprises and data infrastructure companies face significant challenges. According to Pan, data-centric firms struggle with uneven data monetization capabilities, as different use cases require varied approaches to data development, security, and trading. The ability to apply and monetize data effectively often depends on access to advanced computing power and technology, areas where many companies fall short. For data infrastructure companies, the primary hurdle lies in technological innovation, particularly in fields that require cutting-edge technologies like advanced semiconductor manufacturing.

Addressing Financial Challenges

In terms of financial support, Wang Peng highlighted the considerable investment needed to build and maintain data infrastructure, such as data centers, cloud computing platforms, and network transmission facilities. Significant capital is also required for research and development, as well as technological innovation, to enhance data processing capabilities and applications.

Chen Ronghui, Deputy Director of the National Data Administration, stated at a press conference, “We must enhance financial support by utilizing central government budgetary allocations, ultra-long special treasury bonds, and other financial resources to fund the development of data infrastructure, resource aggregation, governance, and security capabilities. Additionally, the Opinions encourage local governments and departments to allocate funds for data product and service procurement, which will stimulate the data resource market and promote the development of a collaborative and competitive industry ecosystem.”

Chen also emphasized that financial institutions should innovate in product offerings, providing tailored financing solutions for data enterprises. Examples include dedicated credit products for data processing companies and financing schemes based on the value of data assets. Financial institutions can also offer risk management services such as credit insurance and guarantees to mitigate operational risks faced by data enterprises.

Expanding Financial Support for Data Projects

In recent years, several financial institutions have been proactive in financing data infrastructure projects. For instance, in September, Industrial Bank’s Qingdao branch extended a 245 million yuan loan to a tech company in Shandong for the procurement of 128 intelligent computing servers, marking the branch's first loan for intelligent computing infrastructure. Earlier this year, Beijing Rural Commercial Bank provided nearly 300 million yuan in loans to support the construction of a public intelligent computing center in Beijing's Data Infrastructure Pioneering Zone, advancing the integration of computing resources, operational services, and application scenarios.

These financing efforts underscore the importance of sustained financial support in building the underlying architecture for China's digital economy. By fostering data-centric enterprises and infrastructure, China aims to create a vibrant data ecosystem that will not only drive economic growth but also enhance its global competitiveness.

Looking Ahead

China's Opinions outline ambitious goals for the data industry. By 2025, significant progress is expected in the development and utilization of public data resources across key industries and regions. By 2030, public data is anticipated to play a pivotal role in empowering the real economy, stimulating consumer demand, and improving governance capabilities.

The strategic focus on data as a fundamental and strategic resource underscores its importance in China's broader economic and technological landscape. The development of data infrastructure, supported by robust financial backing, will be crucial in ensuring that China remains at the forefront of the global digital economy.