US advisory body says China's data dominance gives it AI advantage

Geopolitics
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A U.S. congressional advisory body said on Tuesday that China is commercialising and monetising data as a strategic national asset to power its AI and technology goals, which could potentially give it an advantage over the U.S. in the AI race. The U.S.-China Economic and Security Review Commission wrote in a report that Beijing is marshalling data to drive productivity and improve its intelligence collection and military capabilities. While major U.S. AI companies have largely exhausted the open internet for language model training, China is systematically collecting domestic enterprise, operational and physical-world data that cannot be scraped, crucial for training AI tools designed for business use, autonomous vehicles and humanoid robots. The report said China's advanced manufacturing and industrial robotics ecosystems provide a vast pool of high-quality data for use in embodied AI applications, giving it a potential advantage over the U.S. in developing robotics software for commercial and military uses. Commission vice chair Mike Kuiken said China has been able to consolidate data, find ways to label and refine it, and hoover up new data and make sure it's quickly made available to entities, which benefits their innovation ecosystem and enhances the control of the Chinese Communist Party. China has elevated data to a core factor of production alongside land, labour, capital and technology, and established the National Data Administration in 2023 to oversee nationwide data standardisation and classification and build a unified national market for data trading. The commission recommends that the U.S. Congress think about a national data strategy and how the U.S. government could treat data as an economic asset as its number one recommendation.

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