US urged to treat data as economic asset to compete with China

The US-China Economic and Security Review Commission (USCC) has advised the United States to develop a national data strategy that treats data as a core economic asset. This recommendation follows China’s 2020 designation of data as a key factor of production, a move that has fueled a flourishing data economy through thousands of nationwide data exchanges and pilot trading programs.

The USCC warned that failing to establish proactive data standards could result in the US ceding global leadership to China, particularly in emerging sectors like artificial intelligence and robotics. The commission noted that once global standards are adopted, they are difficult to revise, making early engagement essential.

Concurrently, Chinese technology firms are expanding their global footprint by integrating sophisticated data governance capabilities. Companies such as Huawei and Percent Point Technology are deploying AI-driven governance models and localized digital infrastructure to navigate fragmented international regulations, including the EU’s GDPR and various data sovereignty laws in Southeast Asia, the Middle East, and Africa.