How China manages big data is changing, as new state-owned firm takes the helm

Restrictive ‘data silos’ have impeded logistics and hindered commercialisation of data, but a new centrally managed company aims to tear down barriers

China has formed its first state-owned enterprise specialising in data integration and technology, signalling the pivotal role of digitalisation amid the nation’s economic transformation.

The centrally managed firm – an entity under the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) – has a registered capital of 10 billion yuan (US$1.37 billion) and aims to build a huge platform for data sharing among highways, railways, waterways, aviation and ports.

Its unveiling came on Thursday, and some of the strategic shareholders include China Poly Group, China Railway Materials, TravelSky Technology and Shanghai Data Group.

“The new company will deepen the work of developing and using data, lower the cost of logistics, and create a more competitive and innovative servicing ecosystem,” said Zhang Yuzhuo, SASAC chairman, at the ceremony in Shanghai, according to state media.

China has been boosting its digital economy and platform companies, and the integration of digital advancements into the real economy is expected to foster new growth drivers.

Since 2019, the SASAC has been reforming state-owned enterprises by ramping up their technological innovation and bolstering their economic contributions.

On the global front, the new corporation is expected to play a vital role in connecting China and other overseas markets while upgrading global supply chains, alongside the national development of Belt and Road Initiatives and other international projects.

“Right now, a key obstacle for commercialising data in China is that ‘data silos’ are still quite common, restricting the potential for data to be shared and utilised,” said Robert Wu, CEO of alternative data and research company BigOne Lab, adding that the new company should help consolidate and dismantle data barriers.

Wu also explained that the company chose to settle in Shanghai due to the city’s position as a hub with abundant port facilities and bustling cross-border trade activity.

Kandy Wong

Correspondent, Political Economy