- China is pushing for a cross-border data trading market to meet the growing demand of AI for local data.
- A cleaning robot trained with data in Shenzhen may perform poorly in Kuala Lumpur due to differences in environment and user behavior.
- This makes local data a strategic asset alongside algorithms and computing power in the AI race.
- Since 2020, Beijing has officially recognized data as a new production factor, equivalent to land, labor, and capital.
- China has built a network of data exchanges to allow businesses to trade access to data, consumer trends, and industry information.
- On May 22, 2026, the Shenzhen Data Exchange (SZDEX) signed a memorandum of understanding with Malaysian tech company Zetrix AI to pilot a data trading model between China and ASEAN.
- Zetrix AI describes this model as a “stock exchange for data.”
- In practice, raw data is often not sold directly; businesses primarily trade access rights, usage rights, and analytical products generated from the data.
- For example, a Chinese robot manufacturer can buy analysis of building environments in Malaysia without accessing the original dataset.
- SZDEX currently acts as an intermediary, connecting buyers and data providers while performing legal and compliance checks.
- WITO Technology became the first Malaysian data provider on the SZDEX exchange in 2024.
- Many businesses initially feared their data would be sold to China or expose personal information.
- Participating parties affirm that data undergoes legal, technical, and compliance checks before being listed on the exchange.
- AI is becoming the biggest driver of cross-border data demand.
- According to SZDEX, China’s large language models need more overseas language, culture, and industry data to continue developing.
- The National Data Bureau of China identified the construction of a national integrated data market as a key priority for 2026.
- China has built more than 50 data exchanges over the past decade, forming a national network led by Beijing, Shanghai, Guangzhou, and Shenzhen.
- SZDEX currently cooperates with partners in 8 countries and territories, including building cross-border data guidelines with Singapore.
- ASEAN, with about 700 million people, is viewed by Zetrix AI as a potential data hub rather than just a technology consumer market.
- However, experts say the biggest challenges remain defining data ownership, pricing mechanisms, building trust, and ensuring accountability as data moves across borders.
📌 China is attempting to build a new international data market as AI increases the value of local data. With over 50 domestic data exchanges and the new agreement between SZDEX and Zetrix AI, Beijing is testing a model for data connectivity between China and ASEAN, a region of about 700 million people with great linguistic and cultural diversity. However, unlike goods or currency, data remains an asset class that is difficult to price, hard to govern, and heavily dependent on trust, privacy, and accountability mechanisms between nations.
