The whole society's data volume increases by about 40 percent every year, but the growth rate of data that is actually used is only 5.4 percent, said Xiao Gang, a member of the Chinese People's Political Consultative Conference (CPPCC) National Committee at a thematic consultative meeting on May 17.

Xiao, former chairman of the China Securities Regulatory Commission, attributed the dilemma to insufficient data element circulation, an incomplete transaction system, the absence of full-chain ecology, and immature systems for data property rights, transaction pricing, accounting, income distribution, intermediary service and security governance.

Since the value of data lies in circulation and transactions, Xiao suggested speeding up data property rights legislation, building a multi-level data trading market, developing industry rules and standards, strengthening regulation over data element flow trading, and formulating a unified currency trading system of basic data elements to ensure the basic rights and obligations of all parties involved in data circulation and transactions.

He said that enterprises should strengthen their own data security control and efforts should be made to popularize legal knowledge on personal information protection and improve self-protection awareness of consumers.

On the premise of protecting national data sovereignty, data security and personal privacy, the legislation aims to maximize the promotion of data circulation and transaction and shared utilization, fully release data elements’ productivity, protect and fully stimulate market players to mine data value, and improve the enthusiasm and creativity of data element circulation and transaction, Xiao added.

Miao Wei, vice-chairman of the Committee on Economic Affairs of the CPPCC National Committee and former minister of industry and information technology, said data-related legislation and standards have not yet been established, and practices in the industry have not produced ownership division rules with a common view or referential significance.

Miao noted that data rights confirmation is the key to cultivate the data element market, and only when property rights are clearly defined can rights and responsibilities be clearly defined and data be smoothly shared and circulated to give full play to its role of value multiplication.

According to the plan on the development of the digital economy during the 14th Five-Year Plan  (2021-25) period, a market system for data elements should be established by 2025 and data rights confirmation should be carried out in an orderly manner.

Miao suggested clarifying the basic principles of data rights confirmation, such as classification and grading, making tailored policies and safe development, and actively building the basic framework of data rights confirmation to properly handle the relationship among national data sovereignty, national security, enterprise data property rights and personal information protection.

He also stressed the role of technology in data rights confirmation and a supervision model that matches technological development, market demand and regulatory requirements.

Liu Shijin, vice-chairman of the Committee on Economic Affairs of the CPPCC National Committee and former deputy head  of  the Development Research Center of the State Council, stressed a balanced relationship between data property rights protection and data security and utilization, as well as the leading role of government in promoting data circulation and marketization.

Liu suggested setting up a big data bureau to coordinate the ownership, security and circulation of government data, and better utilize the dormant data. He called for efforts to ensure data property rights protection and security with the help of emerging technologies.

Liu also suggested local governments and enterprises innovate their digital governance and management mechanism and develop a model with Chinese characteristics that is in line with international standards.

According to global market consultancy IDC, data generated in China will reach 48.6ZB by 2025, accounting for 27.8 percent of the global total. On average, it will contribute 1.5-1.8 percent to the country’s GDP growth annually.