National data management SOE reportedly on the way
On Thursday, domestic media reported that China will establish a central state-owned enterprise (SOE) to manage national data resources.
Some context: As regular readers know, China has been trying for years to form a national data market.
But, as it happens: Gathering, standardizing, pricing, and marketing data are all very difficult.
- Beijing has had a good crack at establishing a coherent data market – by creating data exchanges, establishing the National Data Administration, experimenting with new government positions, and founding local data SOEs – but efforts have largely fallen flat.
A central data resources SOE is the latest attempt to get the data economy moving.
- A larger organization can better handle the high cost of standardizing data formats from different sources.
- A central SOE would also be big enough to enforce standardized prices and regulations, helping form a stable market.
Get smarter: Equally, there's every chance a central SOE won't be conducive to managing data resources.
- SOEs are hardly known for their innovative management of data. Excessive layers of bureaucracy may slow down the development of a data market.
- What's more, unlike other national resources – such as oil – data isn't necessarily easy or efficient to manage centrally.
Bigger picture: China is at the forefront of establishing a national data market – it's walking an untrodden path, meaning countless attempts will fail before they finally succeed.