It’s no surprise that China has been revisiting its industrial policy concerning data and Artificial Intelligence (AI). However, this new way may serve as a guide for developing nations—although these same nations risk missing out on the proceeding due to such unique characteristics of AI in terms of innovation and growth. Recently there have been frequent China Tech News reports coming out as China advances with technology and innovation.
In the last decade, China’s industry policy entailed “Internet+ (plus)”, but now it is focused on “data x (multiply)”, which is completely altering her digital economy. This is vital information for every emerging market trying to have its own revolution driven by AI.
In late 2023, China saw the official launch of the National Data Administration (NDA). The NDA is a national bureau that focuses on the development of data-centred economy and market regulations. One of its primary tasks is to consolidate data standards across industries, encourage information sharing among various industries, and simplify regulations on data imposed by different government entities. A new Officer in Charge of NDA unveiled plans dubbed ‘Data Element X’ which portrayed NDA’s aim to unleash multiplier effects of data in every other sector. Its goal in the long-run is “the establishment of digital China.”
DATA Being The Game Changer?
The fact that the NDA has been established as a dedicated data agency for China is not unexpected because earlier in 2020 the central government of China issued an economic policy guideline which included “data” among “factors of production”. However, it is possible that the official launch of NDA was not entirely unconnected with the Generative AI boom created by OpenAI in 2023.
What is China’s digital strategy?
Years ago, it was already triggered by AI in China’s data focus. For instance, in 2015, China introduced the “Internet Plus” approach that was aimed at merging the internet with other sectors like finance, health care and transportation. The aim of the strategy was to foster innovation, efficiency as well as competitiveness and it has been extremely effective.
Nonetheless, the May 2017 historical Go match between Ke Jie, world’s number one ranked player and world champion, and AlphaGo computer program powered by AI which was made by Google’s DeepMind Lab took place in China. The Wuzhen contest resulted in beating the best human player by machine with no theory of humanity being real; thus this shows without a doubt the rise of the digital economy.
The Second Half!
The topic of “the second half” of the mobile economy period had begun to circulate among circles concerned with Internet Business in China as if by magic. The online retail sector and mobile entertainment experienced a large boom within 2013-2016 periods before a paradigm shift occurred from 2017 onwards where “data” and “intelligence” became new buzz words used by economists. It should also be noted that just after the Wuzhen Go match took place, in July, 2017, China’s central government published its Next Generation Artificial Intelligence Development Plan which could have seemed like a fortuitous coincidence with respect to timing.
Boom in Generative AI is surreal!
The boom in Generative AI in 2023 is also pushing Chinese firms – spanning virtually all industries – to heavily invest in research and development of the latest digital technologies. The urgency is gaining storming pace as they seek to fuse their operations with new digital technologies including the internet of things, blockchain, cloud computing, and data analytics (today referred as “iABCD”) in order to generate wealth through unconventional avenues.
This trend is indeed potent and is speeding up. In early January, a three year plan for the introduction of “Data Element X” was launched by 17 government departments and ministries in China just after one month from conception of the term Data X. This plan aims at promoting “high-level application of data”, emphasising on “high quality” supply, data circulation, analytics and security.
For instance, data and metrics are used by enterprise leaders to evaluate the performance, plug gaps and revise plans. In almost all companies this historical information refers to what has already happened, and when the world is stable and conditions for doing business are known these leaders may succeed with that.
Final Thoughts
Altogether, “Data X” means an all-round change in the Chinese digital economy, which can be interpreted as a way of making data mobilisation useful and beneficial. This has far-reaching consequences for other developing countries that view China’s experience as they reform their own economies to reflect a more digital orientation. For more China Tech News check out our website today.
