China launches new Shanghai Data Exchange to maximize value of data

China’s new Shanghai Data Exchange (上海数据交易所) on November 25 officially opened for business in the Pudong New Area, Shanghai city. 20 data products, which falling under eight categories such as finance, transportation and communication, are currently listed to be traded.


The rest of the data providers to the listed include Shanghai Electric Power Co., Ltd., China Eastern Airlines, and more. The exchange’s service providers include Operation Technology Development (OTD) companies such as Big data risk management company Fudata (富数科技), cloud service provider Ucloud (优刻得), and Transwarp (星环科技), accounting organizations such PricewaterhouseCoopers and Deloitte, and law firms such as King & Wood Mallesons.


The data exchange was established to help boost efficiency in the manufacturing industry as the city seeks to promote the digitalisation of supply chains, according to vice mayor Wu Qing. Companies are encouraged to utilize a specialized exchange to share some data and also improve data regulations. 


Chinese regulators have instructed companies to ensure better handling of different kinds of data, amid public complaints about mismanagement and misuse which have resulted in user privacy violations.


The Data Security law, implemented on Sept. 1, sets a framework for companies to classify data based on its economic value and relevance to China's national security.