Those who visit the world’s largest industrial fair in Hannover this week will be impressed by the enormous number of robots that, controlled by artificial intelligencethey are able to shake hands, answer questions in several languages or weld metal parts.
However, the real protagonists at the fairgrounds of the capital of Lower Saxony They are something that cannot be seen or touched, but without which our industrial future would be unthinkable. We are talking about data, a true digital raw material as important as electricity or oil are for us today.
In a few more years, it will be they, the data, who decide on competitive advantages and market shares, and possibly also on the strength of national economies.
Data under state supervision
In China Private data is collected openly. Each individual receives a valuation based on them, known as the “social credit system.” The Government justifies it by arguing that it seeks to promote more morality and honesty in social coexistence, as well as combat fraud and corruption.
Now, industrial data is in the spotlight. “In recent years, the Chinese government has prioritized digital transformation and implemented measures to promote it in areas such as information infrastructure, the digital economy and smart manufacturing,” researcher Qi He, from Hunan Women’s University in China, told DW.
“The political environment supports this transformation through financial subsidies, tax incentives, regional funds and the promotion of collaboration between industry, science and research,” he explains.
The strategic relevance of the data was detected long ago by regime officials. In October 2023, the National Data Administration was created, whose functions include “coordination and promotion of the development of data infrastructure, as well as coordination of the integration, exchange, development and use of data resources.”
However, in 2022, Beijing tightened rules for transferring data abroad and ordered an assessment of the data’s security relevance. As indicated, “important data” must be declared before export.
Data sovereignty
The European Union complains that, in recent years, companies in the Old Continent have faced increasing difficulties when exporting data from China.
“China’s regulatory approach seeks to preserve its data sovereignty,” writes Jiwei Qian, a researcher at the National University of Singapore, in his new book Governing China’s Digital Transformation.
“While these measures respond to national security concerns, they also pose significant challenges to companies that depend on a seamless cross-border flow of data to maintain their global operations,” he adds.
That data is worth more than gold is something that politics and economics in China agree on. The National Economic Growth Program contemplates the development of an autonomous digital infrastructure.
“AI infrastructure is developing on a large scale and is increasingly independent of foreign technology. In addition, efforts are being made to boost domestic software and algorithms, and to ensure an efficient market for training data for AI,” explains Rebecca Arcesati, a China expert at the Berlin think tank MERICS.
Germany as a data partner
An industrial country like Germany also needs data from China, especially car manufacturers, who use it to research topics such as autonomous driving. Currently, all German car manufacturers are making profits in the Chinese market. However, profit margins decrease if innovations are not promoted.
In 2024, China and Germany agreed to maintain a dialogue in the field of automated and connected driving. Among other issues, it seeks to guarantee equitable access to data and its legal processing, as well as its collection, use, storage and transmission until 2029, especially with regard to vehicle and communications data, with emphasis on its protection and security.
The EU is also very aware of the importance of data transfer: “Data flows are essential for trade. A considerable part of the volume of foreign direct investment between the EU and China depends on the ability of companies to manage their data cross-border,” notes the European Commission.
“This applies especially to finance and insurance, the pharmaceutical industry, the automotive sector and information and communications technologies. Cross-border data flows are fundamental for research and development activities and essential for business success.”
