Is China pioneering the future of data monetisation?
Compliance is strict meaning that companies must prove their data is legally obtained and invest in secure storage to meet government regulations.
In a world-first move, Beijing now allows companies to list data as assets on their balance sheets, aiming to turn information into a tradable commodity. With China generating more data than any other country, this policy could reshape the global digital economy.
The catch is that companies aren’t embracing it right away. Political pressure, hefty expenses, and stringent rules have delayed the rollout.
The Arguments
Challenges, Skepticism, and Future Uncertainty
Why the slow adoption?
State-owned firms like China Unicom may be participating due to political pressure rather than economic incentive.
Companies are cautious due to high compliance costs and complex regulations. Private firms fear government intervention and are hesitant to expose their data.
Will this set a global precedent?
No other country has implemented a similar policy. If successful, China could define global accounting standards for data assets. However, global adoption is uncertain—many countries have stricter data privacy laws and may not follow China’s lead.
Can China turn data into a real commodity?
The government is trying to make data tradable—allowing companies to use it as loan collateral and sell it on state-controlled platforms. However, previous attempts at local data trading exchanges failed due to weak regulations, low trust, and unclear rules.
Experts also argue that smaller firms might be left behind—without advanced infrastructure, they may not be able to benefit from this policy.
Is Beijing pushing too hard?
The government is increasing pressure, urging companies to “open up their data” and comply with national standards. Some experts warn that the policy creates an uneven playing field where only large, well-connected firms can benefit.
The Facts
China is the first country in the world to allow companies to list data as assets on their balance sheets, enabling data to be bought, sold, and traded in a marketplace.
China Unicom became the first major company to adopt the new policy, listing 204 million yuan ($28 million) in data assets on its balance sheet.
China generates massive amounts of data: In 2023, the country produced 32.85 zettabytes, accounting for 27% of global data output. By 2025, this is projected to grow to 48.6 zettabytes.
Adoption of the policy remains slow: By late 2024, only 55 listed and 228 non-listed companies had recorded data assets—out of nearly 60 million registered businesses in China.
The government is pushing hard for adoption: The National Data Administration (NDA), launched in 2022, is creating a unified national market for data and will debut a national data resources platform on March 1, 2025.
Compliance is strict meaning that companies must prove their data is legally obtained and invest in secure storage to meet government regulations.
Smaller firms struggle as many lack resources to meet data security and compliance standards.
International challenges exist: Global tech firms like Alibaba and Baidu also face unclear legal implications for listing data assets, especially in countries with strict data privacy laws.
