Eyeing high-quality development, more advanced management of data assets is needed in China's significant stride toward a digital future, said industry experts.

"In the era of burgeoning digital economy, data is essential for the development of new quality productive forces, which has become a premium element of production," said Jiang Wei, director of the cybersecurity research institute at the China Academy of Cyberspace Studies.

Preliminary estimates released during the National Data Work Conference in April suggest that in 2023, China's total data production is expected to have exceeded 32 zettabytes (1 ZB equals approximately 10 trillion gigabytes). Market research company International Data Corp also forecasts that global data production will reach about 160 ZB in 2024 and more than double to 385 ZB by 2028, with a compound annual growth rate of 24.4 percent.

The value of data in circulation and transactions is immense, but there are still challenges such as circulation bottlenecks, underdeveloped trading systems and an incomplete ecosystem for the industry chain, Jiang said.

"Assessing the value of data assets is both a critical and challenging aspect of data circulation," said Liu Bo, chief technology officer with cybersecurity company DAS Security, adding that China's active digital transformation over the past decade has set the stage for data assets to be formally recognized and incorporation into financial statements, providing essential prerequisites for data assets' circulation.

Gao Xinmin, vice-president of the Internet Society of China, also said that China's digital economy development boasts three major edges — a vast market, abundant application scenarios and massive amounts of data.

"The vast data volume is a significant advantage for developing a digital economy and a digital China," Gao said. "Transforming this potential into a tangible advantage requires full understanding of data elements and thorough exploration for more possibilities to fully unleash their potential and maximize their value in practice."

"To promote the circulation of data elements, on the one hand, it is crucial to invest in data infrastructure to bridge the 'last mile' and ensure the smooth flow of data. On the other, efforts must be intensified to cultivate multi-disciplinary talent in the digital economy, artificial intelligence and security sectors, ensuring effective and efficient use of data," said Fan Yuan, chairman of DAS Security.

In order to further promote data circulation and more specifically, facilitate its incorporation into financial statements, Hangzhou Data Exchange, China Software Testing Center and DAS Security newly released the nation's first white paper on managing corporate data balance sheets last week.

"The process of reviewing data assets can sometimes reveal certain security risks, compelling enterprises to address their data security issues comprehensively. Additionally, many companies have identified blind spots in data management, gaining a better understanding of their assets." Liu at DAS-Security said.

Data assets, once included in the balance sheet, can be monetized through data exchange, becoming a significant revenue source, which is particularly beneficial for tech-innovative companies lacking fixed assets, providing them with substantial benefits, Liu added.

Qi Tongjun, deputy director of the Hangzhou Municipal Data Resource Administration, said the data element market, with the market nature in its development, has private enterprises as the main players and calls for market-oriented management.

"Hangzhou is one of the cities with the highest concentration of data elements in the country, and its private enterprises have always been at the forefront nationwide. Hangzhou will continue to intensify support for data operation enterprises to explore and develop in the city," Qi said.