On 25 October 2023 the National Data Administration was officially inaugurated in Beijing. Under the Party and State Institutional Reform Plan, it coordinates the development of foundational data systems, integrates and shares data resources, and advances planning for Digital China, the digital economy and digital society.
Previously, data governance was spread across cyberspace, development and reform, industry and information technology, and market regulation authorities. The new administration moves the data element market from multi-department coordination to a dedicated body.
Boundaries
The National Data Administration does not replace the Cyberspace Administration. Cybersecurity, personal information protection and content governance remain with the cyberspace authorities, and enforcement of the Data Security Law and PIPL remains divided. The new administration focuses on foundational data systems, data resource development, the data element market and the digital economy.
For companies, this division matters: personal information and cybersecurity compliance follow existing paths; data property rights, circulation, revenue distribution and data assets may see new rules and pilots.
Data property rights
The “twenty data measures” proposed separating data resource holding rights, data processing and use rights, and data product operation rights. The new administration provides an implementing body for this structure.
For companies, data property rights are not abstract. They determine whether data can be traded, pledged, contributed as capital or used exclusively in cooperation. Contractual descriptions should move from vague “sharing” and “use” to specific separation of rights.
Circulation and trading
Data exchanges, data spaces and authorised operation of public data are the main vehicles. The administration’s coordination of data integration and sharing may link public data opening with enterprise data circulation.
Companies participating in data trading should consider three questions: is the source lawful, does it contain personal information or important data, and are use boundaries after transfer controllable. Data trading is not selling everything in a bundle but licensing by purpose, permission and term.
Data assets and capitalisation
The Ministry of Finance’s accounting provisions take effect on 1 January 2024, moving data capitalisation into practice. Progress on property rights, registration and valuation will complement accounting treatment.
Companies should manage data assets and compliance together: clear ownership, lawful source, accumulable cost and assessable value. Missing any element blocks capitalisation or financing.
What companies can do
First, inventory data resources and distinguish owned data, entrusted processing and public data. Second, assess which data can be productised, licensed or should not circulate. Third, improve data contracts with separated rights, scope, term and exit arrangements. Fourth, follow property rights registration, capitalisation and local pilots. Fifth, maintain personal information and data security foundations to avoid exposing defects in circulation.
For data compliance and property rights, see our data compliance service; for data asset financing and equity, see financing and equity; for ongoing policy tracking, see annual legal counsel.
This article is based on the inauguration of the National Data Administration on 25 October 2023 and the institutional reform plan. It is for reference only and does not constitute legal advice.