China expands data pilot zones to boost market-based reforms

China will intensify efforts to support comprehensive data element pilot zones in launching pioneering initiatives across more fields and explore new approaches to advance the capitalization of data, the National Data Administration (NDA), the country’s top data governance regulator, said.

Luan Jie, spokesperson and deputy head of the NDA’s policy and planning department, said a key task in establishing these pilot zones is to explore new paths for market-based allocation of data elements. She noted that the zones have taken bold steps and rolled out a series of reform measures.

For instance, Hangzhou in Zhejiang province has introduced a “reform sandbox” to test a fault-tolerance mechanism for data innovation. Wenzhou, also in Zhejiang, has built a compliance review model designed to foster a safe, trustworthy, and predictable data circulation environment, addressing the lack of trust in data transactions.

According to Luan, each pilot zone has explored initiatives suited to its local conditions, industrial base, and geographic strengths, producing notable examples. In Hunan province, for example, efforts are underway to build a world-class audio and video industry cluster by leveraging data to promote deeper integration of culture and technology.

Looking ahead, the NDA said it will support local regions in exploring tailored approaches and creating more practical, accessible application scenarios.

The administration has already taken steps to accelerate the development of systems for data ownership, market transactions, and security governance, aiming to resolve key challenges in market-based allocation reform of data elements.

Wu Xusheng, deputy director of the Zhejiang Provincial Data Bureau, said Zhejiang, as a leader in digital economy development, is working to design systems and mechanisms aligned with data principles, foster data-driven enterprises, and build data industry hubs. These efforts, he said, aim to fully unleash the value of data and energize the sector.