How China’s data strategy could reshape the AI race

The U.S.-China Economic and Security Review Commission said in an issue brief released Tuesday that China's national strategy to treat data as an economic asset could strengthen its position in artificial intelligence, particularly in industrial and embodied AI. China designated data as a factor of production in 2020 and has built infrastructure including the National Data Administration and government-backed data exchanges to collect, standardize, and commercialize data. The Commission recommended that Congress consider a U.S. national strategy recognizing data as an economic asset and examine accounting standards for corporate data.

How China’s data strategy could reshape the AI race A U.S. https://qazinform.com/tag/usa congressional advisory commission says China https://qazinform.com/tag/china t5478 ’s push to treat data as an economic asset could strengthen its position in artificial intelligence https://qazinform.com/tag/artificial-intelligence , particularly in industrial and embodied AI, Qazinform https://qazinform.com/ News Agency correspondent reports. The U.S. https://qazinform.com/tag/usa - China https://qazinform.com/tag/china t5478 Economic and Security Review Commission said in an issue brief released Tuesday that Beijing has developed policies to collect, standardize, value and commercialize data on a national scale. China https://qazinform.com/tag/china t5478 formally designated data as a factor of production alongside land, labor, capital and technology in 2020, making it part of the country’s broader economic development strategy. According to the Commission https://www.uscc.gov/research/peoples-republic-data-how-china-turning-data-capital , the growing importance of proprietary data could become particularly relevant for AI https://qazinform.com/tag/artificial-intelligence development as publicly available information from the open internet becomes less useful for gaining a competitive edge. Enterprise records, industrial operations and data generated by machines, sensors and other physical systems cannot be collected through conventional web scraping and could therefore become increasingly valuable for specialized AI https://qazinform.com/tag/artificial-intelligence applications. The report pointed to China https://qazinform.com/tag/china t5478 ’s large manufacturing and robotics sectors as a potential source of such information. Factories, warehouses and robotic systems can continuously generate real-world operational data that can be used to improve AI https://qazinform.com/tag/artificial-intelligence models for manufacturing, autonomous systems and embodied AI https://qazinform.com/tag/artificial-intelligence , which refers to artificial intelligence https://qazinform.com/tag/artificial-intelligence operating through physical machines such as robots. The Commission said China https://qazinform.com/tag/china t5478 ’s industrial base could provide an advantage in developing these applications if the data can be effectively collected, labeled and shared. China https://qazinform.com/tag/china t5478 has also developed infrastructure intended to turn data into a tradable economic resource. The National Data Administration, established in 2023, oversees aspects of data regulation and standards and is tasked with supporting the development of a unified national data market. Government-backed data exchanges operate in several major cities, while accounting rules introduced by the Ministry of Finance allow companies to record qualifying data resources as assets on their balance sheets. The Commission noted that the system continues to face obstacles, including uneven data quality and reluctance among some private companies to participate in state-led data markets. At the same time, it said official exchanges and other infrastructure have expanded, providing mechanisms for companies and public entities to package, value and trade datasets. The report also highlighted regulatory implications for foreign companies. It said U.S. https://qazinform.com/tag/usa businesses participating in China https://qazinform.com/tag/china t5478 ’s domestic data economy could face uncertainty under the country’s data security and cybersecurity rules, particularly over which information may fall within national security restrictions. Among its recommendations, the Commission urged Congress to consider whether the United States https://qazinform.com/tag/usa should develop a national strategy that recognizes data as an economic asset. It also suggested examining accounting standards for corporate data and increasing U.S. https://qazinform.com/tag/usa engagement in international rules governing data transactions and interoperability. Earlier, Qazinform reported https://qazinform.com/news/trump-orders-major-us-navy-and-shipbuilding-overhaul-e1c9d0 that U.S. President Donald Trump had ordered a broad set of measures to rebuild the U.S. https://qazinform.com/tag/usa Navy and strengthen the country’s shipbuilding industrial base.