China Accelerates Data Infrastructure Under Data Element X

China’s National Data Administration (NDA) announced on May 24 that its “Data Element X” initiative is accelerating the construction and operation of data infrastructure across the country, as Beijing continues to position data as a core production factor for digital economic growth. The initiative has already deployed pilot projects spanning 15 industries and 43 cities, with over 270 application scenarios now operational.

Background and Context

The Data Element X initiative, first introduced by NDA Director Liu Liehong in November 2023 at the Global Data Ecosystem Conference in Shanghai, is a strategic program designed to unlock the multiplier effects of data across economic sectors. The initiative operates under a Three-Year Action Plan (2024-2026) jointly issued by 17 government departments, reflecting the central government’s commitment to formalizing data as a production factor alongside land, labor, capital, and technology.

The NDA itself was inaugurated on October 25, 2023, under the National Development and Reform Commission, with a mandate to advance data-related institutions, coordinate data resource integration, and drive the development of a digital China, as reported by the Global Times.

Key Developments

According to a report by People’s Daily, the NDA has conducted two batches of data infrastructure pilot projects that are now yielding tangible results. These pilots have explored six core technology pathways, including privacy-preserving computation, blockchain, trusted data spaces, data fields (数场), data networking (数联网), and data components (数据元件). The program has also incorporated emerging technologies such as data fabric, data mesh, and ontology theory.

The scale of implementation is substantial: 19,000 ecosystem entities have participated in the pilots, 38,000 data products have been listed, and more than 270 application scenarios have been deployed across diverse sectors. The initiative’s reach spans 15 industries and 43 cities, demonstrating broad-based adoption.

NDA Director Liu Liehong announced that this year’s “Data Element X” competition will add a dedicated “Data Infrastructure Track.” “We hope to strengthen the coupling between data infrastructure and scenario applications through ‘promoting application through competition, combining construction with use,’ and promote dynamic optimization and upgrading of technical routes and standard verification,” Liu said, as reported by CCTV and republished by People’s Daily.

Economic Significance

China’s data economy has grown rapidly in recent years. Academician Wang Xiaoyun of the Chinese Academy of Sciences noted that the country’s data transaction scale reached 70 billion yuan ($9.79 billion) in 2022, with projections to exceed 220 billion yuan by 2025. The number of data-driven businesses in China surged from approximately 110,000 in 2013 to over 1 million in 2023, according to NDA data cited by the Global Times.

The Shanghai Data Exchange, established two years ago, has listed over 1,700 data products with total transactions of approximately 1 billion yuan, illustrating the growing market for data as a tradeable asset.

Analysis and Implications

The acceleration of data infrastructure under the Data Element X initiative represents a systematic effort to build the foundational infrastructure for China’s digital economy. Unlike traditional infrastructure projects focused on physical assets, this program targets the digital layer of the economy, creating standards, technical pathways, and market mechanisms for data流通.

Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, highlighted that data exhibits synergistic effects and reusability. “The more it is used, the better, and its value increases with increased usage, continually generating added value,” Wang told the Global Times, citing large language models as an example of this principle in action.

The addition of a Data Infrastructure Track to the competition signals a focus on standardization and technical validation, which will be critical for interoperability across different industries and regions. The inclusion of emerging technologies like data fabric and data mesh alongside established pathways suggests a dynamic, evolving technical landscape.

What’s Next

The Data Element X City Tour, launched on May 13, 2026, is expected to further accelerate adoption. The first supply-demand matchmaking event was held in Nanjing on May 14, releasing over 60 data scenario requirements. These events aim to connect data suppliers with industry demand, creating a more liquid and efficient data marketplace.

Challenges remain, particularly around data security, privacy protection, and cross-border data flow regulations. However, the broad-based implementation across 43 cities and 15 industries suggests that China is moving decisively toward a data-driven economic model that could serve as a blueprint for other nations pursuing digital transformation.