China inaugurated a state-owned data company to support its AI push

China inaugurated China National Data Group Co., a state-owned enterprise administered by the central government, in Xiongan New Area in Hebei province on Tuesday, according to Global Times.

The company is headquartered in Xiongan and is tasked with developing and using data resources, according to Global Times. It is meant to provide national data services and connect data infrastructure, and it brings the total number of centrally administered state-owned enterprises to 100, Global Times said.

Vice Premier Ding Xuexiang led the inauguration, according to Bloomberg. According to Bloomberg, Ding said the group would help China capitalize on AI development opportunities and create fresh competitive strengths. He urged the companies concerned to work together on pushing the data industry forward, and asked government agencies and local officials to make sure the needed resources are in place.

Ding called the creation of the company a "major strategic decision" by the party leadership under President Xi Jinping, according to the South China Morning Post.

Zhang Xianghong, a member of the national data expert advisory committee, said the group will be responsible for building up, consolidating and running data resources at the national level, and for encouraging data sharing between sectors and across regions, according to Bloomberg. The aim is to end "data silos" and help a single national market for data take shape more quickly, Bloomberg said.

Beijing has been working on a plan to direct 2 trillion yuan ($295 billion) toward AI data centers over the next five years. Under the arrangement being considered, at least 80% of the hardware and software would come from Chinese vendors. The effort aims to link data facilities into a single system by 2028. The blueprint remains in early discussions and details could change.

China has made AI a priority in its drive for more technological independence, as Western limits on exports of cutting-edge hardware grow stricter, according to Bloomberg.

Xiongan is a development zone 100 kilometers (62 miles) southwest of Beijing and a flagship project of Xi, according to Bloomberg. Bloomberg said Xi has urged universities, financial institutions, research institutes and state-owned enterprises to relocate to the area.