Bloomberg "Restructuring to Expand Dominance"
Significant Strengthening of Ministry of Science and ICT's Role

China is establishing a National Data Bureau to oversee the vast storage and management of data. It is likely to become a de facto powerful entity responsible for statistics and information management, which are central to mid- to long-term economic policies and major industrial strategies. Some voices have expressed concerns about the deepening of China's totalitarianism through the political use of data.


According to the "State Council Institutional Reform Plan" proposal submitted to the National People's Congress (NPC), China's parliamentary body, on the 7th under the name of Premier Li Keqiang, China plans to establish the Data Bureau to oversee tasks such as promoting digital economy development, implementing the national big data strategy, establishing basic data-related systems, and building data infrastructure. These responsibilities were previously handled by the National Development and Reform Commission (NDRC). Additionally, the bureau will coordinate and promote the establishment of data-based systems, oversee the sharing, development, and utilization of data resources, and manage the planning and construction of the digital economy and digital society. It will effectively become the "Big Brother" in the digital information sector.


[Image source=Yonhap News]

[Image source=Yonhap News]

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Western media have voiced concerns. Bloomberg News described the establishment of the Data Bureau as "a move to respond to U.S. regulations that has shaken the technology and data system," and reported that "President Xi Jinping has extensively reorganized official institutions to further consolidate his control." It added, "The government is securing control over the vast amounts of data produced nationwide to limit the power of the private sector and is striving for greater control in response to the emergence of new data-based technologies such as artificial intelligence (AI)."


Tom Nonlist, a data policy analyst at consulting firm Trivium China, said, "The theme of this year's Two Sessions was science and technology, and behind that is the United States," explaining, "The establishment of the Data Bureau shows the government's intention to develop data as a strategic resource." Tiffany Tam and Robert Lee, Bloomberg Intelligence analysts, emphasized, "Data protection issues are emerging due to national security concerns," and "the biggest problem is that it is becoming increasingly politicized."


The U.S. Wall Street Journal (WSJ) analyzed that the new top regulatory agency will consolidate data control duties currently handled by the Cyberspace Administration of China (CAC), the Ministry of Industry and Information Technology, and the NDRC, and predicted that the newly established Data Bureau may investigate potential national security violations by companies within China.


Alongside this, the State Council also proposed significantly strengthening the role of the Ministry of Science and Technology. The ministry will take charge of strategic planning roles such as major national science and technology projects, industrialization of scientific and technological achievements, integration of industry, academia, and research, establishment of science and technology supervision and evaluation systems, international cooperation, and talent cultivation. Bloomberg evaluated this as "aimed at coordinating strategies and formulating policies to reduce dependence on U.S. technology."



Additionally, a plan was proposed to establish the National Financial Regulatory Administration (NFRA), a government agency directly under the State Council, to take overall responsibility for supervising and managing financial sectors other than securities. The institutional reform plan submitted to the NPC also includes reducing central government department positions by 5% and strategically redistributing them to key areas. The functions related to aging population issues and policy formulation, previously handled by the National Health Commission, will be transferred to the Ministry of Civil Affairs, which is equivalent to South Korea's Ministry of the Interior and Safety, and the Intellectual Property Administration will be directly supervised by the State Council cabinet.


This content was produced with the assistance of AI translation services.

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