‘Trusted Data Spaces’: Beijing’s Latest Step Toward Digital Dominance

Executive Summary:

• The People’s Republic of China (PRC) plans to create over 100 “trusted data spaces” by 2028 as part of a strategy to dominate data governance internationally.
• The plan aims to break through current barriers obstructing the streamlining of data sharing and utilization and achieve the establishment of a unified national data market.
• Fostering international data standards is part of the plan, highlighting Beijing’s ambitions to enhance national control over data by creating an ecosystem with potential regional and international interconnections.
• “Trusted data spaces” are another piece of the ecosystem that the newly implemented Data Security Law has helped to construct, allowing Beijing to access sensitive information from foreign businesses while maintaining strict control over national data.

The National Data Administration (国家数据部) of the People’s Republic of China (PRC) has released a five-year action plan for “trusted data space development (可信数据空间发展),” aiming to achieve breakthroughs in operations, technology, ecology, standards, and security, with the goal of establishing over 100 data spaces by 2028 (NDA, November 25). This is a foundational step in a broader strategy to build a robust data ecosystem, drive digital economy growth, and strengthen data sovereignty.

The plan defines a “trusted data space” as a data circulation and utilization infrastructure built on consensus-based rules that connect multiple stakeholders. Within this space, operators (运营者) are responsible for establishing and managing the “trusted space” for data providers and users, offering services such as data processing, hosting, and matching supply to demand. These spaces are subject to oversight by the government or an authorized third party to ensure compliance and accountability.

The plan highlights three major capabilities essential for trusted data space development by enabling secure and efficient sharing of sensitive data among stakeholders. These are trusted control (可信管控能力), resource interaction (资源交互能力), and value co-creation (价值共创能力). For example, a leading manufacturing corporation could collaborate with its supply chain partners to create a trusted space for sharing sensitive information such as design documents and operational data, ensuring both reliability and security in the data exchange (CCTV, November 22).

In addition to enterprise spaces, the plan proposes four other types of spaces covering key industries (重点行业), cities, individuals, and cross-border exchange. These initiatives aim to support an integrated data ecosystem and promote the free trade of cross-border data. The National Data Administration wants trusted data spaces to enhance this, which will be constructed through financial support, talent cultivation, and by developing benchmarks. [1]

Data as the New Oil

PRC President Xi Jinping sees data as a critical resource. In 2013, he said data was “like oil has been to industrial society (如同工业社会的石油资源);” and in 2020 data was officially designated as a “factor of production (生产要素),” intended to serve as a new driving force for economic development (Xinhua, March 2016; Gov.cn, April 10, 2020). The domestic data industry has subsequently grown exponentially. In 2022, data production exceeded 8 zettabytes, ranking second globally. The figure increased to nearly 33 zettabytes in 2023, accounting for 26 percent of global data creation (Statista, November 21). The PRC aims for its data industry to achieve an annual growth of over 20 percent by 2026, supported by initiatives from provincial governments such as Anhui, Fujian, and Zhejiang.

While data is seen as the “main engine (重要引擎)” for economic growth, challenges persist. These include low data usage, inefficient transactions, and the need for improved data circulation. Similar issues were highlighted during the establishment of the National Data Administration in 2023, including difficulties in establishing ownership, pricing data, and building mutual trust (CCTV, May 23, 2023; NDRC, November 7, 2023; Xinhua, May 24; CCTV, August 8; Zhejiang Daily, December 2).

Data circulation in the PRC remains constrained, lacking attributes required for a thriving digital economy. The new action plan seeks two ways to address these challenge. This includes promoting new blockchain and other secure technologies, and achieving the long-held goal of establishing a unified data market across the country (Xinhua Finance, November 24; Study Times, December 15). On the latter point, a seven-part guideline released in October by the National Development and Reform Commission charts a roadmap to establish over 30 general national data standards by 2026, covering foundational frameworks, infrastructure, technologies, application integration, and security measures (NDRC, October 8). This was followed in November by a roadmap for national data infrastructure that the National Data Administration released to solicit comments (The Paper, November 22).

The PRC also seeks to influence global standards-setting and data governance. The “trusted data space” plan emphasizes active participation in international standard-setting through multilateral frameworks like the G20 and APEC, and in organizations such as the International Organization for Standardization. Additionally, the One Belt One Road (一带一路) initiative is highlighted as a regional cooperation platform for promoting “trusted data space” demonstration projects. These efforts provide opportunities to connect domestic and international data spaces, enabling the PRC to share its expertise in developing data infrastructure and solidify its leadership role in the global data industry. Recent data security laws, which align companies with infrastructure that serves CPP objectives, also simplified the management and utilization of sensitive information. [2]

Conclusion

The “trusted data space” action plan is part of the National Data Administration’s broader agenda this year, which has included addressing data property rights, data circulation, the distribution of the benefits of data, security governance, and digital economy development (Xinhua, July 2).

These initiatives demonstrate Beijing’s accelerated push to establish a robust national data ecosystem and, increasingly, influence global data governance. Beijing hopes that this will stimulate much-needed economic growth while also gaining more control over what it sees as a new factor of production. As such, it directly challenges the current dominance of foreign data infrastructures.

Notes

[1] “Trusted Data Spaces Development Action Plan (2014–2028) (可信数据空间发展行动计划（2024—2028年),” NDA, November 25.

[2] Johnson, M. (2023). China’s Grand Strategy For Global Data Dominance: A CGSP Report (CGAP Occasional Paper Series No. 2). Stanford, CA: Hoover Institution, Stanford University. See also: China Brief Notes, September 10; October 24.