Tech

The next satisfactory standard for data governance may not come from Brussels. It may come from Beijing.

China’s “data-as-factor-of-production” doctrine is quietly crystallizing into a rival governance stack—complete with mandatory cross-border data-flow audits, sector-specific “data factor” exchanges, and a sovereign data-trust model that treats petabyte-scale datasets as national infrastructure. While Brussels refines GDPR’s consent-based regime, Beijing’s draft Data Security Law and Shanghai Data Exchange are already operationalizing a state-led, algorithmically enforced framework that could redefine global compliance baselines. AI-assisted, human-reviewed.

China treats data as a factor of production, a national economic resource on par with land, labour, capital, and technology. This approach is producing a data governance framework that is structurally different from those in the European Union and the United States.

Overview

The European Union treats data as a privacy right, while the United States treats it as a corporate asset. China's framework, on the other hand, prioritizes economic utility and state security over individual rights. The country has established a

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