China, locked in a technology rivalry with the United States over artificial intelligence, has set up a state-owned data company under the direct control of the central government.
China officially launched China National Data Group Co., a state-owned enterprise dedicated to developing and using data resources, in the Xiong'an New Area in Hebei Province, the state-run Xinhua News Agency reported on Oct. 20 local time.
Chinese Vice Premier Ding Xuexiang attended the launch ceremony. Ding said the group's establishment would help China "seize opportunities in AI development and secure new competitive advantages." He urged related companies to work together to develop the data industry, while calling on government ministries and local authorities to ensure a reliable supply of necessary resources. Zhang Xianghong, a member of the national data expert advisory committee, told state broadcaster China Central Television that the group would enable data development, integration and operation at the national level and promote data sharing across industries and regions.
The Xiong'an New Area, about 100 kilometers southwest of Beijing, is a flagship state project designed under President Xi Jinping to disperse and absorb functions of the capital. Xi has pushed for state-owned enterprises, universities, financial institutions and research bodies to relocate to Xiong'an, while calling for the area to be developed as a hub for new technologies and a testing ground for innovative technology and financial policies.
China is pursuing technological self-reliance in the face of Western export controls on AI. The government plans to invest about 2 trillion yuan (about $280 billion) in building data centers nationwide over the next five years to boost its AI industry.