On January 16, 2025, the “Summit on Promoting the Circulation of Data Elements for New Productivity Development in the Digital Economy”, organized by the Greater Bay Area International Information Technology Association (GBAITA) and co-organized by the Big Data Governance Workers' Union (BDGWU) and the Hong Kong Web 3.0 Standardization Association (HKW3A), was held in Hong Kong.  

Maghfirra, Minister of Finance of Pakistan Ali Pervaiz, Commissioner of the Securities and Exchange Commission of the Philippines Rogelio V. Quevedo, Chief Technology Officer of the Hong Kong Exchanges and Clearing Group Xu Qingqiang, and Director of the CFIEC, Director of the Macau University of Science and Technology's International Research Institute of the Next-Generation Internet, Liu Dong, attended the event and delivered speeches.

At the meeting, Liu Dong said that data has become an important driving force for global economic development and scientific and technological innovation, and every 10% increase in data flow will drive GDP growth by 0.2%. The value of data is getting more and more attention with the rapid development of artificial intelligence, which also brings us new opportunities. Hong Kong is an international trade center, an international financial center and an international free port, gathering the world's leading fintech companies and data technology enterprises. Using data space and technologies such as Web3 as a base to build Hong Kong's international data flow and trading hub, we can give full play to Hong Kong's advantages in institutional frameworks, integrate into the global data flow system, and contribute to the development of the global digital economy.

Building an International Data Circulation and Transaction Hub with DataSpace Hong Kong

“To promote global data flow, firstly, it is necessary to explore a set of perfect international data circulation mechanism covering legal rules, technical system and management model to realize global interconnection and interoperability; secondly, in order to encourage the enthusiasm of data circulation and exchange, it should also design a set of reasonable benefit distribution mechanism so that the data can be truly valued. From the present point of view, the combination of Web3 and data is a very important direction, which is worth exploring and practicing. And personal privacy protection and data security capabilities are the base pedestal for realizing these.” , said Liu Dong at the meeting.

Data space relies on data use control and intelligent contracts and other technologies to comprehensively safeguard data autonomy, solving the problem of data dare not, will not, do not want to share, and its distributed architecture is moreover can quickly build an open data space network, guaranteeing the flexibility, security and high efficiency of data circulation and transaction, creating more business opportunities and forming new business models. The meeting also officially signed the international cross-border trusted data space Hong Kong Station Memorandum of Cooperation, the construction of the Hong Kong Station will be connected to the global data circulation network, to build an international data circulation hub to provide a clear technical path, the full realization of the credible interconnection of data and value co-creation.

Liu Dong pointed out that globally, there are currently more than one hundred data space use cases, which are widely involved in dozens of industry sectors such as healthcare, manufacturing, energy, transportation, etc., with a large number of data access sources, a wide range of application scenarios, and huge development potential. With the promotion of the International Data Space Association (IDSA), Japan, Brazil, Singapore, etc. have gradually formed a regional Hub, and the interconnected international data space network is accelerating. In December 2024, China's National Data Bureau officially released the Action Plan for the Development of Trusted Data Space, proposing that by 2028, 100 mature data space demonstration pilots will be built. Data space has become one of the major ways of data circulation. It is believed that through the construction of the Hong Kong Station, relying on Hong Kong's established advantages and the support of the Mainland, Hong Kong will quickly become a core node in this global network. The development of Web3 is promoting the formation of a new type of data circulation mechanism, which will create an economic system oriented to the whole life cycle of data elements such as rights, circulation, trading and financing, and promote data valorization with digital financial mechanisms, so that every participant can reap the benefits. The global-oriented international data circulation and trading constructed on the basis of data space and Web3 technology will better realize data valorization and improve the efficiency and enthusiasm of data circulation. It can also explore more modes of data assetization and capitalization, encourage and stimulate data circulation and trading, and explore the greater economic value of data elements.

Relying on the International Data Industry Alliance to build an ecosystem for the data industry in Hong Kong and around the world

Talking about the International Data Industry Alliance (IDIA) to be established at the conference, Mr. Liu Dong said, “I have been serving in many international organizations, such as IEEE, IDSA, Global IPv6 Forum, etc., and I am very honored to be involved in the preparatory work for the Hong Kong International Data Industry Alliance (IDIA). It should be said that the alliance, which is non-governmental in nature, can play more roles in industry promotion, technical standards as well as policy guidance, etc. It is more flexible, efficient and easier to form consensus, which can quickly form technical specifications and carry out practical verification to promote the implementation of policies.”

In terms of how to generate synergies with policy-making organizations, Liu Dong said: first, the data alliance can represent the needs of the industry and provide practical feedback and technical advice to policy-making organizations to help the policy closer to the actual needs and improve the relevance and effectiveness of the policy. Second, the alliance can transform the abstract requirements of the policy into a good translator for the industry's operable standards and processes. Third, the alliance can provide a pilot test for the launch of the policy and a scenario to test the international data flow policy. This not only helps policymakers assess the feasibility and effectiveness of policies, but also provides data support and empirical evidence for policy optimization. Through technology promotion, industry collaboration and policy docking, the non-government nature of the data alliance can improve, enhance and support and implement the cross-border data transfer mechanism, and form a benign interaction with policy makers to promote the improvement and development of the global data governance system.

At the same time, Liu Dong suggests that the Alliance can focus on four areas of priority attention: first, the establishment of an informal policy dialogue platform: the Alliance's establishment of a regular cross-border policy dialogue mechanism can promote the coordination and mutual recognition of data regulations in different countries and regions. For example, the IDA could organize regular multilateral meetings, inviting national data protection agencies to participate, to discuss and develop harmonized data sharing standards. Second, provide legal compliance support: this includes providing detailed compliance guidelines and tools to help members understand and comply with the laws and regulations of different countries, and lowering legal barriers to cross-border data sharing. For example, compiling comparative reports on data protection laws across countries and providing compliance assessment services. Third, safeguard the interests of participants in data sharing and trading, and propose a revenue distribution mechanism and incentive mechanism: this includes formulating a clear revenue distribution model to ensure that all participants receive fair returns based on their contributions and inputs, and formulating a clear and transparent distribution mechanism and market incentive mechanism. For example, revenue distribution should be based on the quantity and quality of data contributions to ensure that both data providers and data users receive reasonable benefits. The last point is the support of the industry ecosystem: including the development of applications and demonstrations in key industry sectors, and the provision of technical validation and validation of economic and commercial models. To form a perfect ecological chain and ecosystem, and promote its good and sustainable operation.

Finally, Liu Dong concluded that Hong Kong has a significant advantage in promoting international cross-border data sharing with its advanced data infrastructure, technological and financial advantages, sound institutional framework, internationalized education and human resources, as well as actively constructed data space and Web3 ecosystem. Such multi-dimensional advantages will enable Hong Kong to play a key role in the international data flow and transaction network, drive the rapid development of the global data economy, and provide strong support for Hong Kong's own economic growth and enhanced international influence.