How China Is Building a Nationwide Data Infrastructure to Power AI and the Digital Economy

1. Data Basic System

The Party and State place great emphasis on leveraging data as a foundational resource and an engine of innovation, recognizing data as a production factor alongside land, labor, capital, and technology. In early 2024, the National Data Bureau was created to coordinate data‑base system construction, integrate data resources, and promote data sharing and utilization, thereby strengthening China’s digital economy.

Beijing, as a hub for central enterprises and talent, is launching a pilot zone for data basic system reforms, focusing on the "three‑rights" separation (ownership, processing, and product rights), data circulation, and infrastructure development.

Key Initiatives

Explore the implementation of data "three‑rights" separation to ensure secure data supply.

Develop a multi‑level data circulation and trading system to activate data assets.

Promote data infrastructure construction to guarantee safe and efficient data flow.

2. Data Infrastructure

Data is a strategic resource in the digital era. Modern data infrastructure integrates network, computing, and data‑circulation facilities to provide end‑to‑end services such as data aggregation, processing, exchange, application, operation, and security.

Key capabilities include:

Data aggregation : High‑speed networks (5G, fiber, satellite) enable multi‑source data collection, trustworthy registration, and precise rights confirmation.

Data processing : Cloud, edge, distributed, and AI technologies deliver efficient, low‑cost, intelligent storage and analysis.

Data circulation : Data spaces, privacy‑computing, blockchain, and sandbox techniques allow "usable but invisible" and "controllable and measurable" data sharing across industries.

Data application : Generalized AI decision‑making, design assistance, and smart management lower entry barriers and boost digital transformation.

Data operation : Coordinated tools and rules ensure smooth data flow, settlement, auditing, and dispute resolution.

Data security : Privacy protection, encryption, and digital identity safeguard data throughout its lifecycle.

Investments in data infrastructure are projected to reach trillions of yuan over the next five years, driving high‑quality digital‑economy growth.

3. Public Data Resource Development and Utilization

Data is central to digital government. Recent UN e‑government rankings show China’s rapid progress, with data enabling services such as "one‑stop" administration and integrated platforms.

Challenges include low data openness, quality, and supply‑chain inefficiencies. The National Data Bureau plans to:

Implement a property‑rights allocation system for public data.

Build secure, trustworthy data infrastructure using data spaces, high‑speed networks, privacy‑computing, and blockchain.

Address industry pain points through targeted data‑factor action plans.

Encourage enterprise data‑authorisation models and develop data‑service providers.

Support core‑technology innovation for AI datasets and high‑performance computing.

4. Activating Data Factor Value

Data, as a new production factor, drives economic growth through its unique characteristics—high mobility, low replication cost, and increasing returns. Properly harnessed, data can enhance resource allocation, spur new industries, and create multiplier effects, while also presenting privacy and security risks that must be managed.

5. High‑Quality Artificial Intelligence Development

High‑quality data is the foundation of AI breakthroughs; superior datasets enable smaller models to outperform larger ones. Robust computing power—general, intelligent, and super‑computing—supports generative AI and large‑model training. Industry applications in logistics, culture, and scientific research illustrate AI’s transformative potential.

Security governance, talent cultivation, standards, and international cooperation are essential to sustain AI’s safe and innovative development.

6. Accelerating the Construction of a Nationwide Integrated Computing‑Power Network

Building a unified computing‑power network is vital for China’s modern digital base, supporting high‑quality development, regional coordination, data‑factor circulation, and carbon‑neutral goals.

Key actions include:

Deepening top‑level design and balanced deployment of computing resources.

Promoting an ecosystem of computing‑power providers and users.

Facilitating east‑west collaboration and “fly‑in‑fly‑out” models for resource sharing.

Ensuring security across infrastructure, network, and data layers.

Integrating green energy to achieve low‑carbon, sustainable operations.

These measures aim to create a secure, efficient, and green computing backbone that underpins data‑driven innovation and the digital economy.