China’s data management: Putting the party-state in charge

European industry associations and government delegations alike have repeatedly sounded the message to China’s government that its data laws are driving a costly economic decoupling. While Chinese policymakers appear to be listening, security and growth imperatives have persuaded Beijing that the market alone cannot handle data safely and efficiently; the party-state must remain firmly in charge of all key levers of policy and society in China.

The regulatory and institutional overhaul of China’s data governance framework over the past six years frames Beijing’s efforts to harness data as a national resource and a factor of production. During this time, Beijing has considerably strengthened its control and visibility over China’s data flows through party and state agencies like the Cyber Administration of China and the National Development and Reform Commission, as well as through a range of data exchanges, platforms, and clearinghouses that sit in strategic positions in China’s financial, industrial, and social structures.

Increasingly, privately owned Chinese and foreign firms alike must navigate intrusive party state control over data transfers, both within China and across borders. Rebecca Arcesati and Jeroen Groenewegen-Lau of MERICS explain the emerging mechanics of China’s data management in this paper.