Special bonds earmarked for data infrastructure

China will step up the input of central fiscal funds to support the construction of data infrastructure and make full use of ultra-long-term special treasury bonds to accelerate the building of architecture related to national data infrastructure, said the National Data Administration, the country's top data governance regulator.

Experts said the country's latest move to construct data infrastructure will bolster the circulation, development and utilization of data resources, facilitate high-quality growth of the country's digital economy and unleash the value of massive data elements.

China will elevate the amount and proportion of fiscal subsidies this year to support local governments and industries to build a number of data infrastructure projects that are basic and long-term and benefit the general public, said the NDA on Monday.

It will also speed up efforts to study and formulate plans concerning national data infrastructure during the 15th Five-Year Plan (2026-30) period.

National data infrastructure refers to a new type of infrastructure that supports data collection, aggregation, transmission, processing, circulation, utilization, operation and security. It comes amid the backdrop of the rapid development of digital technologies and infrastructure across the globe.

Liu Liehong, head of the NDA, said the administration will initiate construction of the main structure of national data infrastructure this year, and quicken the establishment of relevant standards, while strengthening exchanges and cooperation with international organizations to absorb experience in the construction of data infrastructure worldwide.

Liu said the plan regarding national data infrastructure will focus on four aspects — data circulation and utilization facilities, computing power facilities, network facilities and security facilities.

China aims to complete the building of the main structure of national data infrastructure by 2029, according to a guideline jointly issued by the National Development and Reform Commission, the NDA and the Ministry of Industry and Information Technology in January.

The guideline, which is the country's first policy document on national data infrastructure construction, stated that efforts will be made to complete the top-level design of national data infrastructure between 2024 and 2026, and to build such infrastructure to support large-scale data circulation and interconnectivity, while integrating data networks and computing power facilities between 2027 and 2028.

The country has also vowed to upgrade the 5G network to 5G-advanced — or 5G-A, a crucial upgrade of the 5G network in terms of functionality and coverage — and promote 6G-related research, development and innovation.

According to preliminary estimates by industry insiders, China's investment in data infrastructure will attract about 400 billion yuan ($55.4 billion) in annual direct investment, with the total scale reaching about 2 trillion yuan over the next five years.

The nation's accelerated push to establish national data infrastructure will not only help promote the effective integration and efficient use of data resources, but also bolster the circulation and transaction of data, said Zhu Keli, founding director of the China Institute of New Economy.

"It will propel deeper integration of data elements with the real economy, boost the transformation and upgrade of traditional industries, and cultivate new economic growth drivers, while attracting more social capital and resources to be invested in the digital economy domain," Zhu said.

Pan Helin, a member of the Expert Committee for Information and Communication Economy — which is under the Ministry of Industry and Information Technology — said the construction and operation of national data infrastructure is crucial for building the basic systems for data, cultivating a national integrated data market and nurturing new quality productive forces.