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If data are new gold, governance can safeguard society

By Liu Xiaochun | China Daily | Updated: 2021-01-18 11:40
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An overhaul of personal data already collected once all the aforementioned systems are in place would be in order. [Photo/IC]

The issue of data categorization needs to be resolved through legislative efforts in this field. A number of suggestions have been made in legislation regarding personal information protection, which is very necessary.

Categorization should be made for data under digital economy.

First, special attention should be given to managing data regarding public security, finance and people's livelihood, and how they can be made accessible on internet platforms and how such data can be used.

Second, the responsibility of data management should be specified, and ownership and usage rights to data clarified.

Third, legal liability in data use and transaction must be made clear.

Fourth, as data management is a new and emerging sector yet closely related to national security, social stability and a steady running of economic activities, a special regulatory department or mechanism should be set up with powers of oversight.

At the same time, a category-specific, more proper oversight on artificial intelligence is also needed, particularly a more targeted regulatory model for algorithms developed by various businesses.

An overhaul of personal data already collected once all the aforementioned systems are in place would be in order.

Mechanism for the oversight and management of super-giant data platforms should be set up. On the one hand, objective views are needed about the monopolies taken by super-giant digital platforms.

These platforms also bear public service functions, differentiating them from industrial or commercial monopolies. Concentration of platforms may also help add on commercial competitiveness and social efficiency.

Take third-party payments as an example. To ensure unimpeded payments, various market participants tend to gather on one payment platform. If communications across different telecom companies cannot be realized, only one telecom platform will eventually survive.

Such logic also applies to third-party transactions, which explains why even though the regulators concerned issued a number of licenses, only a few survived. And there are reasons behind why only those few did manage to survive.

First, the survivors are those that are supported by the banks' unified payment services. Second, the companies specialized in integrated payment services has become a solution for third-party payment platforms banning one another.

Super-giant platforms will likely continue to increase as digital society grows. Concentration of multiple services in a single platform may make business sense for market share-minded companies. But it is debatable if this is the right path to digital transformation of society.

So, proper regulatory measures and oversights are needed in helping such platforms to grow with society in a responsible manner. This is why, oversight mechanisms are needed, as platform enterprises can't achieve this on their own through self-regulation.

Meanwhile, all data collected by platform businesses are related to society's various publics and therefore should not be treated as commercial assets.

The article is a translation of a comment from the Bund Summit by Liu Xiaochun, the deputy dean of the Shanghai Finance Institute.

The views don't necessarily reflect those of China Daily.

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