Chinese state media has warned that selling government data risks privacy breaches and could even put national security at risk.
“Government data is characterised by a large sample size, high sensitivity, and strong aggregation, making it highly susceptible to breaches of privacy data,” said a report published on Tuesday by Xinhua Daily Telegraph, an outlet owned by the state news agency. “If different data sets are widely leaked, it could pose a risk to national security.”
It continued: “It is important to be vigilant about the risks of certain administrative agencies purely seeking profit and engaging in administrative monopolies in the process of managing public data.
“Public data should not simply become a tool or means for the government to increase fiscal revenue; it should maintain a focus on public welfare and uphold the social public interest.”
The report said local governments were increasingly tempted to sell data because the slump in the property market was hitting land sale revenue, adding to their debts.
“In some areas, the decline in land-based finance and the significant pressure of debt repayment are increasing the possibility of an impulse towards a data-driven economy,” it said. “Some are even suggesting that local governments explore a transition from land-based finance to a data-driven economy.”
It also said possessing government and public data had “significant social and economic value” because of the extensive and comprehensive information available and clear sourcing.
The Chinese authorities have stepped up their focus on national security risks in recent months by issuing a series of warnings, including in the recently concluded third plenum, a key Communist Party policy meeting.
In late June, the National Audit Office published a submission to the country’s top legislative body, the Standing Committee of National People’s Congress, which criticised the “new trend of using government data for profit”.
It said its 2023 audit had found that four government departments illegally profited from selling government data for an overall gain of 248 million yuan (US$34 million).
It did not name the departments or release other details, but blamed “lax supervision” for allowing them to make money from 13 government data systems by “determining the data content, service formats and fee standards all without approval”.
Last year the local government in Hengyang, a city in Hunan province, was forced to suspend an online bidding process for government data resources and a smart city project. State broadcaster CCTV reported that it had been seeking to raise 1.8 billion yuan from the auction.
China has attached increasing importance to official data in recent years, and set up the National Data Administration last year to improve management at all levels of local government and advance the building of a data infrastructure system.
In a document issued by the State Council, China’s cabinet, in December 2022, Beijing urged party and government organs at all levels to improve the management of data and promote interconnectivity.
It also encouraged the public sector to break down “data silos” and protect personal privacy and public safety when using data.
