(Yicai Global) March 5 -- China should establish a national data bank to prevent information monopoly, according to Tan Jianfeng, a member of the National Committee of the Chinese People’s Political Consultative Conference.

As the country continues to promote digitalization, big platform operators have large amounts of data, resulting in a de facto information monopoly, Tan, who is also president of the Shanghai Information Security Trade Association, said in a proposal submitted at the Two Sessions in Beijing.

The national data bank should be formed under the unified management and control of specialized agencies to collect, transmit, store, and confirm key data, he said. Companies could access the bank’s records for analysis and application, but they would not own the information.

Many big data analysis firms can only rely on data monopoly platforms and institutions and provide services to them, the political adviser said. In the absence of a proper data compliance review system, innovative firms that use non-sensitive or desensitized information for analysis and modeling to create economic value cannot secure enough data and therefore lose opportunities for growth.

Tan suggested setting up a compliance review system for the use and management of data, breaking the monopoly, and encouraging the development of innovative data usage technologies and companies.

While promoting the digital economy’s development and innovation in big data, China must carefully consider the classification and control of data, especially in the medical realm, he said. Personal biometrics such as fingerprints and DNA are unique and non-renewable key data that must be effectively controlled to prevent social risks and ensure national security.

Network Security Spending

To provide a solid network security guarantee for the development of the digital economy, Tan also suggested setting mandatory requirements for the proportion of the network security budget. For instance, the budget should not be less than 5 percent of the investment in information technology construction. And the share should be raised to more than 10 percent for key data infrastructure and major informatization projects, including data centers, fifth-generation wireless networks, and the Internet of Vehicles.

The total IT budget of the United States in fiscal 2021 was set at USD92.2 billion, of which the network security budget was USD18.8 billion, accounting for 20.4 percent of total, he said. In Europe, it has reached 10 percent to 15 percent, while in China it is just 1.87 percent, according to IDC data.

Tan also suggested drawing up a proactive policy on developing the network security sector and putting into action a proactive and vertical industrial policy. The cyber-security sector should be defined as an emerging strategic area to support and attract more aspiring businesses and entrepreneurs to it.

At the same time, China should increase the share of network security products and services purchased by the government and state-backed firms to boost industrial growth, he said.

Editor: Peter Thomas