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    China to increase data security market size

    By FAN FEIFEI | China Daily | Updated: 2025-01-21 09:13
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    China's latest move to improve security governance for data circulation is expected to better fully unleash the value of data elements, boost the high-quality development of the data industry and bring about more business opportunities for data security enterprises, experts said.

    Highlighting the fact that data has become a new type of production factor, the development of the data industry is crucial for deepening reform related to the market-oriented allocation of data elements, building a digital economy with data as the key element and advancing the construction of a "Digital China", they added.

    Their comments came as the National Development and Reform Commission, the National Data Administration and four other government departments recently issued a guideline aimed at elevating data security governance capabilities and bolstering the compliant and efficient circulation and utilization of data elements.

    The guideline said that by 2027, a data circulation security governance system with clear rules, prosperous industry and multi-party coordination will be established, the data compliance and efficient circulation mechanism will be further improved and governance efficiency will be significantly enhanced.

    It noted that enterprises and public institutions are encouraged to establish the position of chief data officers to strengthen data governance, development and utilization. Data processors should identify and declare important data in accordance with relevant regulations, and accept supervision and inspection by regulatory authorities based on the law, according to the guideline.

    "Data plays a vital role in realizing the innovative allocation of production factors, promoting the efficient coordination of industrial and supply chains, and improving total factor productivity," said Zhao Gang, head of CIO Manage, a Beijing-based digital economy market consultancy.

    He stressed the need to innovate in data security products and services, and accelerate the building of data infrastructure, which serves as a foundation for the efficient, secure and reliable circulation of data.

    "The guideline clarifies the security governance rules for data circulation, providing a solid institutional guarantee for the market-oriented circulation of data elements. It will help standardize the data circulation market and prevent risks of data abuse by stipulating different rules concerning data circulation, including enterprise data, public data and personal information," said Chen Xiaohua, director of China Mobile Communications Association's Blockchain and Data Elements Professional Committee.

    Statistics from the National Data Administration show that China's total data output reached 32.85 zettabytes in 2023, up 22.4 percent year-on-year, while the added value of core digital economy industries accounted for 10 percent of GDP.

    The guideline also stated that more efforts will be made to crack down on industries that illegally obtain, sell or provide data, strengthen the protection of sensitive personal information and restrict the use of personal information beyond the scope of authorization.

    Yuan Shuai, deputy secretary-general of Z-Park Internet of Things Industry Alliance, said with the continuous development of the digital economy, digital security technology will play a crucial role in various links covering data sharing, transaction and storage, and improving the security and traceability of data circulation.

    Meanwhile, the demand for data security technology will continue to grow, which will bring about immense opportunities and development space for enterprises engaged in data security technology research, development and application, driven by technological advancement and expansion of application scenarios, Yuan added.

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