The construction of data foundation system is related to the overall situation of national development and security. Recently, the CPC Central Committee and the State Council issued the Opinions on Building a Data Foundation System to Better Play the Role of Data Elements (hereinafter referred to as the Opinions). The Opinions explored and constructed four systems, including data property rights, circulation and transaction, income distribution, and security governance, with a total of 20 policy measures, known as “20 data items” by the industry.

“The Opinions have given feasible solutions to the difficult and painful problems such as data right confirmation and data resource over-concentration.” Pan Helin, co-director of the Research Center for Digital Economy and Financial Innovation of the International Business School of Zhejiang University, said in an interview with “Qiang Guan Cha” column of People.cn.

Building a data foundation system has many meanings

"Data is the fifth largest factor of production after land, labor, capital and technology," said Li Aijun, professor of China University of Political Science and Law and president of the Internet Finance Law Research Institute.

As early as April 2020, the Opinions on Building a More Perfect System for the Market-based Allocation of Factors was published. As a new type of production factor, data was listed as one of the factors for the first time alongside other traditional factors. “As a new factor of production, data has been rapidly integrated into production, distribution, circulation, consumption and social service management,” Pan Helin said.

With regard to the construction of data foundation system proposed in the Opinions, the head of National Development and Reform Commission said in response to the reporter’s question that the construction of data foundation system is a landmark, comprehensive and strategic measure for China’s reform and opening up in the new era, which is conducive to giving full play to the role of data elements, enabling the real economy and promoting high-quality development. It is conducive to strengthening, optimizing and expanding the digital economy, responding to the technological revolution and industrial transformation, and building new advantages in international competition. It is conducive to the overall distribution of efficiency and fairness, promote the sharing of the development dividend of the digital economy by all, and advance the realization of common prosperity. It is conducive to improving the governance efficiency of data elements and helping the modernization of national governance system and governance capacity.

Creatively put forward the "three rights separation" data property rights system framework

In the process of data production, circulation and use, individuals, enterprises, society, countries and other relevant entities have different interest demands on data, and are characterized by complex symbiosis, interdependence and dynamic change. The traditional rights system framework is difficult to break through the data property dilemma.

The “Qiang Guan Cha” column of People.cn noted that the Opinions proposed to explore the system of structural separation of data property rights and establish a data property rights system framework of "three rights separation" of data resource ownership, data processing and use rights, and data product management rights. So, what are the relevant considerations for the proposal of the Opinions? In response, the head of the National Development and Reform Commission said in response to the reporter’s question that the “20 data items” are oriented to solve the actual problems encountered by the market subjects, innovate the concept of data property rights, dilute ownership, emphasize the right to use, focus on the circulation of data use rights, and creatively put forward the data property rights system framework of “three rights separation” of data resource ownership, data processing and use rights and data product management rights so as to build a system of data property rights with Chinese characteristics.

In this regard, Li Aijun also said that data is a record of information, mainly represented by electromagnetic symbols existing in computer systems, and people can process data through big data technology. Its unlimited replication can realize the separation of data holding, processing and use, and thus realize the property rights operation mechanism of the separation of data holding rights, data processing and use rights, and data product management rights of data actors. “Therefore, the 'three rights separation’ of data property rights can give full play to the role of data production factors and data value exploring.”

Promote the construction of multi-level data market trading system

“The content of the Opinions is very detailed and enforceable, especially with regard to the cultivation of the data element market. It is proposed to build a multi-level and diversified data element market ecosystem, coordinate the construction of data transaction market, standardize the data transaction management, and push forward the separation of the functions of data trading venue and data provider.” In the view of Pan helin, due to the complexity of data characteristics, there are challenges in data trading, such as the difficulty of right confirmation, pricing, mutual trust and supervision. It is particularly important to plan and optimize the layout of national data trading venues, introduce data trading venue management measures, and build a multi-level market trading system.

“In addition, data elements are easy to be concentrated in a few platform enterprises, and it is also necessary to pay attention to the problems that may arise from data concentration.” Pan Helin stressed that the Opinions mentioned that enterprises should strictly abide by relevant laws and regulations such as the Anti-monopoly Law, and should not use data, algorithms and other advantages and technical means to eliminate and restrict competition and implement unfair competition.

“This has seen the problem of data concentration. If we want to promote the circulation of data elements and prevent concentration, we should promote the concept of data sharing and co-using, reasonably reduce the threshold for market entities to access data, and enhance the sharing and inclusiveness of data elements.” Pan Helin said that this can help small enterprises gain development assistance.