NATIONAL POLICY BACKGROUND
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Since the 20th National Congress of the Communist Party of China in October 2022, from national planning to local policies, continuous efforts have been made to promote the basic system and market-oriented construction of data elements.
In December 2022, the Central Committee of the Communist Party of China and the State Council: Twenty Data Articles
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- Establish a classification, grading, and authorization system for public data, enterprise data, and personal data;
- Establish a separate property rights operation mechanism for data resource ownership, data processing and usage rights, and data product management rights;
- Explore new models for enterprise data authorization and leverage the leading role of state-owned enterprises;
- Cultivate third-party professional service institutions such as data integration, data brokerage, compliance certification, security auditing, data notarization, data insurance, data custody, asset evaluation, dispute arbitration, risk assessment, and talent training.
In February 2023, the Central Committee of the Communist Party of China and the State Council: Digital China
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- Unleash the potential value of commercial data, accelerate the establishment of data property rights system, conduct research on data asset valuation, and establish a mechanism for data elements to participate in distribution based on their value contribution;
- Strengthen intellectual property protection and improve the mechanism for distributing the benefits of intellectual property transformation;
- Enhance data security capabilities and establish a basic system for data classification and classification protection.
In December 2023, National Data Administration, Central Cyberspace Administration, etc.: "Data Elements x Three Year Action Plan"
- Guide enterprises to open up data, encourage market power stars to explore the value of commercial data, and support innovative applications of social data integration;
- Strengthen supply incentives, formulate and improve rules for protecting the rights and interests of relevant entities in different stages of data content procurement, processing, circulation, and application, and promote the coordinated development of data merchants, third-party professional service institutions, and others;
- Improve support measures for cultivating data merchants: implement data security regulations and systems and improve data classification and classification protection systems.
CURRENT SITUATION AND CHALLENGES
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Difficulty in data resource ownership confirmation
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The "Twenty Articles of Data" innovatively proposes a separation of ownership rights for data resources, data processing and usage rights, and data product management rights. However, in enterprise practice, the first major challenge in data asset allocation is how to determine the ownership of various data sources from different channels, such as data collected independently through public channels, data accumulated in enterprise business but involving customer personal information, and even data purchased by enterprises.
Difficulty in collecting data product costs
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Data asset entry into the balance sheet is the process of accounting for data products that meet the asset recognition criteria and presenting and disclosing them on the balance sheet. However, our research has found that in the management process of data products, enterprises focus more on meeting specific needs, and the cost control of data collection, cleaning and processing, modeling and development, and secure storage is relatively extensive. Moreover, there is a significant information asymmetry between the data business department and the finance department, which leads to difficulties in collecting data product costs, resulting in difficulty in entry into the balance sheet.
Immature data compliance & security assessment mechanisms
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The guarantee and maintenance of data security is a condition for the marketization of data elements, and a guarantee for the sustainable development of data elements. At present, China lacks unified data security laws and regulations, the responsibilities and obligations of data security are difficult to clarify, the standards and technologies of data security are difficult to improve, the monitoring and early warning of data security are difficult to implement, and the emergency response and disposal of data security are difficult to be effective.
CASES
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Report on Compliance Assessment of Dataset Entry into Table
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To provide data compliance and safety assessment consulting services for a certain A-share enterprise and the steel industry, and to form a dataset compliance assessment report.
Through the "Group Digitalization Project", we have carried out "Data Governance" for various major information systems and carried out classification and grading work for data of each system that conforms to 17 industry attributes. We have gained a detailed understanding of the rules of registration, evaluation, and entry into the table, as well as the situation of market-oriented service institutions. Including enterprise data resource sorting, ownership confirmation, cost and expense recognition, recording in the balance sheet, and external disclosure.
