China eyes 10 new national data zones in digital economy push, AI race with US

China will establish 10 national data pilot zones, its data agency announced, as the country seeks to bolster its digital economy and compete with the United States in the race to dominate artificial intelligence.

The National Data Administration (NDA) said the zones would be established in Beijing, Zhejiang, Anhui and other regions. The initiative encourages select local governments to spearhead efforts “in nurturing data-related market entities and expanding the data market”, according to the state broadcaster CCTV.

The zones also intend to “unlock the potential of integrating the real economy with the digital economy”, the CCTV report said.

The move came as China ramps up efforts to tap into the digital economy’s growth potential and gain an edge in its intensifying tech rivalry with the United States, especially in the rapidly evolving AI sector.

According to CCTV, China had already “established a comprehensive data industry chain”, home to over 190,000 data-related enterprises. The sector’s market size had surpassed 2 trillion yuan ($US278.4 billion), with the figure projected to rise to 7.5 trillion yuan by 2030, according to the state broadcaster.

A three-year action plan covering 2024 to 2026, released by 17 government agencies, including the NDA, aims to double the volume of data transactions and create over 300 exemplary application scenarios to leverage the multiplier effects of data across sectors.