'Digital China' the priority for 2026

China will ratchet up resources to deepen reforms related to the market-oriented allocation of data elements and accelerate the cultivation of a unified national data market in 2026, as part of a broader push to unleash the value of data resources and advance the building of a "Digital China", according to the country's top data governance regulator.

More efforts should be made to smooth the channels for data circulation and resource allocation, activate both supply and demand in the data market, and foster a vibrant market ecosystem this year, so as to allow data to better empower economic and social development, the National Data Administration said at a national data work conference that ended on Dec 30 in Beijing.

The conference stressed the need to formulate and implement the "Digital China" development plan, foster an open, shared and secure unified national data market, vigorously promote the deep integration of data-driven technological innovation and industrial innovation, and boost data sector development.

The NDA pledged efforts to deepen the integration, application and scenario construction of data, promote urban digital transformation, advance the development and operation of data infrastructure, and improve the basic systems for data.

China will work to boost the growth of artificial intelligence by leveraging data, expand international cooperation in the data sector, actively participate in the formulation of international rules and standards, and carry out international cooperation in the digital economy domain, said the administration.

China previously unveiled a plan for overall digital development, vowing to make important progress in the construction of a "Digital China" by the end of 2025. By 2035, the nation is expected to be at the global forefront of digital development.

The nation's total data output reached 41.06 zettabytes in 2024, up 25 percent year-on-year, while the added value of core industries of the digital economy accounted for about 10 percent of the GDP, said the NDA.

"Data have been rapidly integrated into various areas like production, circulation and consumption, and are playing an increasingly pivotal role in bolstering industrial upgrades," said Ouyang Rihui, assistant dean of the China Center for Internet Economy Research at Central University of Finance and Economics.

Ouyang said the country's emphasis on deepening reforms related to the market-oriented allocation of data elements and developing the data industry will propel the deeper integration of data elements with the real economy, boost the efficient development and application of data resources, and promote the high-quality development of the digital economy.

Mei Hong, an academician at the Chinese Academy of Sciences, said digital transformation in traditional industries — such as manufacturing, transportation and energy — has become the main battlefield in the development of the digital economy.

Mei underscored the importance of establishing a data elements market, promoting the confirmation of data-related rights, and exploring a data pricing mechanism and value assessment system to give full play to the massive value of data.

Jiang Xiaojuan, a professor at the University of Chinese Academy of Social Sciences, said more efforts are needed to increase the supply of high-quality data, accelerate the integration of data elements with AI, and press ahead with the construction of national computing power infrastructure.