Dear subscribers,

I am doing a consolidated edition today, with select content from the past two days’ editions. This will also be the final edition of the newsletter for 2022. I am taking a break and will resume the newsletter from Monday, January 2, 2023.

So let me take the opportunity to wish you all a Merry Christmas and a Happy New Year! Hope you have a safe and joyous holiday season. And if you are in China, hope this wave passes quickly and with the least possible damage to people’s health and lives.

Warmly,

Manoj

Here are the stories and pieces that I found noteworthy from the Tuesday, December 20th, 2022, and Wednesday, December 21, 2022, editions of the People’s Daily.

Since I missed out on yesterday’s edition, there were two key pieces that I’d like to highlight. First, there was a speech by Xi Jinping on the anniversary of the 1982 constitution. I am not doing a breakdown; rather sharing this Twitter thread below.

Jean Christopher Mittelstaedt @jcmittelstaedt

XJP speech on the anniversary of the 1982 constitution 习近平署名文章：谱写新时代中国宪法实践新篇章——纪念现行宪法公布施行40周年

news.cn习近平署名文章：谱写新时代中国宪法实践新篇章——纪念现行宪法公布施行40周年-新华网习近平署名文章：谱写新时代中国宪法实践新篇章——纪念现行宪法公布施行40周年 ---今年是我国现行宪法公布施行40周年。40年来，现行宪法有力推动和加强了社会主义法治建设，有力推动和保障了党和国家事业发展。我们要以纪念现行宪法公布施行40周年为契机，贯彻党的二十大精神，强化宪法意识，弘扬宪法精神，推动宪法实施，更好发挥宪法在治国理政中的重要作用，为全面建设社会主义现代化国家、全面推进中华民族伟大复兴提供坚实保障。

Also, yesterday, there was a new guideline from the State Council on the building of basic systems for data. I am doing a breakdown of this below. Just a note of caution, that this was tricky since there is technical stuff in there, so I’ve done the best I could.

The introduction says that data is a new, key factor of production. The construction of basic systems for data is related to the overall situation of the country’s development and security. It adds that the guideline has been put together in order to speed up the construction of basic systems for data, give full play to the advantages of China's massive data scale and rich application scenarios, activate the potential of data, strengthen and improve the digital economy, enhance the new kinetic energy of economic development, and build new national competitive advantages. 数据基础制度建设事关国家发展和安全大局。为加快构建数据基础制度，充分发挥我国海量数据规模和丰富应用场景优势，激活数据要素潜能，做强做优做大数字经济，增强经济发展新动能，构筑国家竞争新优势，现提出如下意见.

Section I details the guiding ideology and working principles. After mentioning Xi’s thought and the new development pattern, the guiding ideology bit calls for:

“Adhering to reform, innovation and systematic planning, taking the safeguarding national data security and protecting personal information and business secrets as the premise, promoting data compliance, efficient circulation and use, and empowering the real economy as the main task, focusing on data property rights, circulation transactions, profit distribution and security governance, and deeply participate in the formulation of international high-standard digital rules, construct basic systems for data that adapt to data characteristics, conform to the developmental laws of the digital economy, ensure national data security, and highlight innovation; fully realises the value of data, enables all people to share the dividends of the development of the digital economy, and provides strong support for deepening the drive for innovation, promoting high-quality development and promoting the modernisation of the national governance system and capacity.” 指导思想。以习近平新时代中国特色社会主义思想为指导，深入贯彻党的二十大精神，完整、准确、全面贯彻新发展理念，加快构建新发展格局，坚持改革创新、系统谋划，以维护国家数据安全、保护个人信息和商业秘密为前提，以促进数据合规高效流通使用、赋能实体经济为主线，以数据产权、流通交易、收益分配、安全治理为重点，深入参与国际高标准数字规则制定，构建适应数据特征、符合数字经济发展规律、保障国家数据安全、彰显创新引领的数据基础制度，充分实现数据要素价值、促进全体人民共享数字经济发展红利，为深化创新驱动、推动高质量发展、推进国家治理体系和治理能力现代化提供有力支撑.

The working principles are:

Follow the laws of development and innovate institutional arrangements
Insist on shared public use to release value dividends: “Lower the threshold for market participants to obtain data reasonably,
Enhance the sharing and inclusiveness of data, encourage innovation, entrepreneurship and creation, strengthen anti-monopoly and anti-unfair competition, and form a development model that is standardised according to law, participates together, takes what each needs, and shares dividends.” 合理降低市场主体获取数据的门槛，增强数据要素共享性、普惠性，激励创新创业创造，强化反垄断和反不正当竞争，形成依法规范、共同参与、各取所需、共享红利的发展模式.
Strengthen quality supply and promote compliant circulation: In this, the document says “Establish a reliable data circulation system to enhance the availability, credibility, circulation and traceability of data.” 建立数据可信流通体系，增强数据的可用、可信、可流通、可追溯水平.
Improve the governance system to ensure secure development: In this, it calls to “make overall plans for development and security, implement the comprehensive national security concept, strengthen the construction of data security guarantee system, make security run through the whole process of data supply, circulation and use, and delineate the regulatory bottom line and red line. Strengthen data classification and classification management, control what should be managed and release what should be released, actively and effectively prevent and resolve all kinds of data risks, and form a data governance structure in which government supervision and market self-discipline, rule of law and industry autonomy are coordinated, as are domestic and international frameworks.” 统筹发展和安全，贯彻总体国家安全观，强化数据安全保障体系建设，把安全贯穿数据供给、流通、使用全过程，划定监管底线和红线。加强数据分类分级管理，把该管的管住、该放的放开，积极有效防范和化解各种数据风险，形成政府监管与市场自律、法治与行业自治协同、国内与国际统筹的数据要素治理结构.
Deepen open cooperation and achieve mutual benefit and win-win results. In this, it calls to “actively participate in the formulation of international rules for cross-border data flows, and explore joining regional institutional arrangements for cross-border data flows. Promote bilateral and multilateral consultations on cross-border data flows, and promote the establishment of mutually beneficial rules and other institutional arrangements. Explore new ways and modes to encourage cross-border data flows and cooperation.”　深化开放合作，实现互利共赢。积极参与数据跨境流动国际规则制定，探索加入区域性国际数据跨境流动制度安排。推动数据跨境流动双边多边协商，推进建立互利互惠的规则等制度安排。鼓励探索数据跨境流动与合作的新途径新模式.

Section II deals with the establishment of a data property rights system. It makes five points:

Establish a system for classification and authorization of public data, corporate data, and personal data. “According to the data sources and data generation characteristics, the legal rights enjoyed by each participant in the process of data production, circulation and use should be defined respectively; establish a separate property rights operation mechanism for data resource holding rights, data processing and usage rights, and data product management rights; promote a new model of ‘common use and shared benefits’ of non-public data in a market-oriented manner, and provide basic institutional guarantees for activating the value creation and value realisation of data. Study new ways of data property registration…” 建立公共数据、企业数据、个人数据的分类分级确权授权制度。根据数据来源和数据生成特征，分别界定数据生产、流通、使用过程中各参与方享有的合法权利，建立数据资源持有权、数据加工使用权、数据产品经营权等分置的产权运行机制，推进非公共数据按市场化方式“共同使用、共享收益”的新模式，为激活数据要素价值创造和价值实现提供基础性制度保障。研究数据产权登记新方式...
Promote public data sharing. In this, the document warns against the creation of ‘data silos/islands’. It calls for sharing and coordinated use of public data generated by Party and government organs, enterprises and public institutions at all levels when performing their duties or providing public services in accordance with the law. It also talks about making public data available to society while protecting personal privacy and ensuring public safety. 推进实施公共数据确权授权机制。对各级党政机关、企事业单位依法履职或提供公共服务过程中产生的公共数据，加强汇聚共享和开放开发，强化统筹授权使用和管理，推进互联互通，打破“数据孤岛”。鼓励公共数据在保护个人隐私和确保公共安全的前提下，按照“原始数据不出域、数据可用不可见”的要求，以模型、核验等产品和服务等形式向社会提供，对不承载个人信息和不影响公共安全的公共数据，推动按用途加大供给使用范围。推动用于公共治理、公益事业的公共数据有条件无偿使用，探索用于产业发展、行业发展的公共数据有条件有偿使用。依法依规予以保密的公共数据不予开放，严格管控未依法依规公开的原始公共数据直接进入市场，保障公共数据供给使用的公共利益.
Promote the establishment of enterprise data confirmation authorization mechanism. In this, it says that for all kinds of data collected and processed by market entities in production and business activities that do not involve personal information and public interests, market entities enjoy the rights and interests related to data holding, usage and obtaining profits according to laws and regulations, so as to ensure that their labour and other factors contribute to a reasonable return, and to strengthen the incentive of data factor supply. Encourage the exploration of new modes of enterprise data authorization, give play to the leading role of state-owned enterprises, guide leading enterprises in the industry and Internet platform enterprises to play a leading role, promote two-way and fair authorization with micro, small and medium-sized enterprises, use data rationally together, and empower small and medium-sized enterprises to transform digitally. Support third-party organisations and intermediary service organisations to strengthen the formulation of data collection and quality evaluation standards, promote the standardisation of data products, and develop industries such as data analysis and data services. Government departments can obtain the data of relevant enterprises and institutions according to laws and regulations when performing their duties, but they must agree and strictly abide by the use restriction requirements.” 推动建立企业数据确权授权机制。对各类市场主体在生产经营活动中采集加工的不涉及个人信息和公共利益的数据，市场主体享有依法依规持有、使用、获取收益的权益，保障其投入的劳动和其他要素贡献获得合理回报，加强数据要素供给激励。鼓励探索企业数据授权使用新模式，发挥国有企业带头作用，引导行业龙头企业、互联网平台企业发挥带动作用，促进与中小微企业双向公平授权，共同合理使用数据，赋能中小微企业数字化转型。支持第三方机构、中介服务组织加强数据采集和质量评估标准制定，推动数据产品标准化，发展数据分析、数据服务等产业。政府部门履职可依法依规获取相关企业和机构数据，但须约定并严格遵守使用限制要求。
The next point is on personal data. The document prohibits “excessive collection” via “blanket authorisation” or “forced consent.” 不得采取“一揽子授权”、强制同意等方式过度收集个人信息，促进个人信息合理利用. But the use of special personal information data that relates to national security may be authorised to be used by relevant units in accordance with laws and regulations. 对涉及国家安全的特殊个人信息数据，可依法依规授权有关单位使用. It also says: “strengthen the protection of personal information, promote the establishment and improvement of long-term protection mechanisms in key industries, strengthen the main responsibility of enterprises, and standardise the collection and use of personal information by enterprises. Innovate technical means to promote anonymous processing of personal information, and ensure information security and personal privacy when using personal information data.” 加大个人信息保护力度，推动重点行业建立完善长效保护机制，强化企业主体责任，规范企业采集使用个人信息行为。创新技术手段，推动个人信息匿名化处理，保障使用个人信息数据时的信息安全和个人隐私.
Establish a system for protecting the legitimate rights and interests of all participants engaged with data. In this, it talks about protecting the rights and interests of data processors. It also calls to “Protect the management right of data or data derivative products formed by processing and analysis, regulate the right of data processors to licence others to use data or data derivative products, and promote the reuse of data in circulation. Establish and improve the mechanism of transferring data-related property rights and interests based on legal provisions or contractual basis. When the data processor is merged, divided, dissolved or declared bankrupt, the relevant rights and obligations shall be transferred simultaneously according to the law and regulations.” 依法依规规范数据处理者许可他人使用数据或数据衍生产品的权利，促进数据要素流通复用。保护经加工、分析等形成数据或数据衍生产品的经营权，依法依规规范数据处理者许可他人使用数据或数据衍生产品的权利，促进数据要素流通复用。建立健全基于法律规定或合同约定流转数据相关财产性权益的机制。在数据处理者发生合并、分立、解散、被宣告破产时，推动相关权利和义务依法依规同步转移.

Section III discusses establishing a data circulation and transaction system. It makes four points:

Establish standard rules for data circulation and access; strengthen compliance by market entities throughout the whole process; ensure that the sources of circulation data are legal, privacy protection is in place, and circulation and trading are standardised…Encourage data circulation security technologies, standards and schemes…Support the exploration of diversified pricing models and pricing mechanisms…promote the paid use of public data for digital development according to government-guided pricing, and independent pricing of enterprise and personal information data in the market…crack down on black market transactions, and ban illegal industries in data circulation…Establish and implement a data security management certification system to guide enterprises to improve data security management through certification. 完善数据全流程合规与监管规则体系。建立数据流通准入标准规则，强化市场主体数据全流程合规治理，确保流通数据来源合法、隐私保护到位、流通和交易规范。结合数据流通范围、影响程度、潜在风险，区分使用场景和用途用量，建立数据分类分级授权使用规范，探索开展数据质量标准化体系建设，加快推进数据采集和接口标准化，促进数据整合互通和互操作。支持数据处理者依法依规在场内和场外采取开放、共享、交换、交易等方式流通数据。鼓励探索数据流通安全保障技术、标准、方案。支持探索多样化、符合数据要素特性的定价模式和价格形成机制，推动用于数字化发展的公共数据按政府指导定价有偿使用，企业与个人信息数据市场自主定价。加强企业数据合规体系建设和监管，严厉打击黑市交易，取缔数据流通非法产业。建立实施数据安全管理认证制度，引导企业通过认证提升数据安全管理水平.
Coordinate the construction of standardised and efficient data trading venues…Measures for the administration of data trading places will be introduced, data trading rules will be established and improved, and a unified national standard system for data trading and security will be formulated to reduce transaction costs. 统筹构建规范高效的数据交易场所。加强数据交易场所体系设计，统筹优化数据交易场所的规划布局，严控交易场所数量。出台数据交易场所管理办法，建立健全数据交易规则，制定全国统一的数据交易、安全等标准体系，降低交易成本.
Cultivate a number of data providers and third-party professional service organisations around the needs of promoting the compliant, efficient, safe and orderly circulation and trading of data. 围绕促进数据要素合规高效、安全有序流通和交易需要，培育一批数据商和第三方专业服务机构。
Build secure, compliant and orderly cross-border data circulation mechanisms. As part of this, it says: “Conduct national security review according to laws and regulations on data processing, cross-border data transmission, foreign capital mergers and acquisitions and other activities that affect or may affect national security. In accordance with the principle of reciprocity, export control shall be carried out on data belonging to controlled items related to safeguarding national security and interests and fulfilling international obligations according to laws and regulations, so as to ensure that the data are used for legitimate purposes and prevent security risks related to data going out of the country.” 对影响或者可能影响国家安全的数据处理、数据跨境传输、外资并购等活动依法依规进行国家安全审查。按照对等原则，对维护国家安全和利益、履行国际义务相关的属于管制物项的数据依法依规实施出口管制，保障数据用于合法用途，防范数据出境安全风险。

Section IV discusses the need to build a data factor income distribution system that reflects efficiency and promotes fairness. Some excerpts from this:

gradually establish a system and mechanism for ensuring fair income distribution of data, and pay more attention to public interest and relatively vulnerable groups 逐步建立保障公平的数据要素收益分配体制机制，更加关注公共利益和相对弱势群体.
strengthen government guidance and regulation, explore the establishment of a reasonable mechanism for sharing benefits from the opening up of public data resources, and allow and encourage all types of enterprises to provide public services based on public data in accordance with laws and regulations. 加大政府引导调节力度，探索建立公共数据资源开放收益合理分享机制，允许并鼓励各类企业依法依规依托公共数据提供公益服务
Constantly improve the data factor market system and institutional rules to prevent and regulate the disorderly expansion of capital in the data field to form market monopoly and other problems. 不断健全数据要素市场体系和制度规则，防止和依法依规规制资本在数据领域无序扩张形成市场垄断等问题。
make overall use of funds and resources from various channels, carry out data knowledge popularisation, education and training, improve the overall digital literacy of society, strive to eliminate the digital divide between different regions and people, enhance social equity, ensure people's wellbeing and promote common prosperity. 统筹使用多渠道资金资源，开展数据知识普及和教育培训，提高社会整体数字素养，着力消除不同区域间、人群间数字鸿沟，增进社会公平、保障民生福祉、促进共同富裕.

Section 5 talks about establishing a secure, controllable, flexible and inclusive data governance system.

It says: “give full play to the role of the government in guiding and standardising development in an orderly way, keep the safety bottom line, clarify the red line of supervision, and create a secure, credible, innovative, fair and open data factor market environment with effective supervision. Strengthen industry-specific and cross-industry supervision, establish a mechanism for joint data management and governance, and establish a sound mechanism for tolerating and correcting errors that encourages and accommodates innovation. Establish a system of compliance notarisation, security review, algorithm review, monitoring and early warning in the whole process of production and circulation of data elements, and guide all parties to fulfil their security responsibilities and obligations in circulation of data. Establish a sound data circulation supervision system, formulate a negative list for data circulation and transactions, and specify the data items that cannot be traded or are strictly restricted. Strengthen anti-monopoly and anti-unfair competition work, strengthen law enforcement and justice in key areas, strengthen centralised assessment of operators according to laws and regulations, investigate and punish monopoly agreements, abuse of dominant market position and illegal concentration of business operators in accordance with laws and regulations, and create a fair and orderly market environment…comprehensively strengthen data security protection work, improve the network and data security protection system, and enhance the defense-in-depth and comprehensive defense capabilities.” 充分发挥政府有序引导和规范发展的作用，守住安全底线，明确监管红线，打造安全可信、包容创新、公平开放、监管有效的数据要素市场环境。强化分行业监管和跨行业协同监管，建立数据联管联治机制，建立健全鼓励创新、包容创新的容错纠错机制。建立数据要素生产流通使用全过程的合规公证、安全审查、算法审查、监测预警等制度，指导各方履行数据要素流通安全责任和义务。建立健全数据流通监管制度，制定数据流通和交易负面清单，明确不能交易或严格限制交易的数据项。强化反垄断和反不正当竞争，加强重点领域执法司法，依法依规加强经营者集中审查，依法依规查处垄断协议、滥用市场支配地位和违法实施经营者集中行为，营造公平竞争、规范有序的市场环境。在落实网络安全等级保护制度的基础上全面加强数据安全保护工作，健全网络和数据安全保护体系，提升纵深防护与综合防御能力.

It calls to encourage enterprises to participate in the data market. As part of this, it says “Enterprises shall strictly abide by the anti-monopoly law and other relevant laws and regulations, and shall not use data, algorithms and other advantages and technical means to exclude or restrict competition and implement unfair competition.” 企业应严格遵守反垄断法等相关法律规定，不得利用数据、算法等优势和技术手段排除、限制竞争，实施不正当竞争.

It also calls for giving full play to the “collaborative governance role of various social forces.” This includes establishing a “credit system of data factor market” which rewards trustworthiness and punishes dishonesty. It also talks about establishing national standards for data management.

Later in the paper, there’s a Q&A report with NDRC officials, discussing the guideline.

Now to Wednesday’s paper. I am only focussing on the key stories.

First, Xi’s conversation with German President Frank-Walter Steinmeier. Xinhua reports:

“The Chinese president made three suggestions on the development of China-Germany relations in the next stage.

Firstly, he said, both sides should have a correct basic understanding. Xi called on the two sides to continue to gather and expand consensus through dialogue, manage differences in a constructive manner, and continue to enrich their partnership.
Secondly, China-German cooperation is practical and open, which is the most important feature of bilateral ties that should be maintained, he said. Noting that over the past 50 years, bilateral trade volume has increased by some 870 times, Xi said the two sides should cherish their hard-won cooperation fruits, enhance complementarity in market, capital and technology, expand cooperation in traditional areas such as automobiles, machinery and chemicals, and tap cooperation potential in various fields including trade in services, intelligent manufacturing and digitalization. China treats German enterprises investing in China equally, and hopes that Germany will provide fair, transparent and non-discriminatory business environment for Chinese enterprises that invest in Germany, he added.
Thirdly, Xi said, the two sides should work together to guide the sound and steady development of China-European Union (EU) relations. China supports the strategic autonomy of the EU, and hopes that the EU will adhere to the basic position of China and the EU as strategic partners of each other, uphold mutual respect, mutual inclusiveness, practical cooperation and mutual benefit, as well as maintain that China-EU relations should not target, depend on or be subject to any third party, Xi said. He also said he hopes Germany will continue to play a positive role and work with China to promote the steady and long-term growth of China-EU relations. Xi stressed that China is willing to carry out more extensive and in-depth cooperation with Germany in tackling such global challenges as sluggish economic recovery in the post-pandemic era, climate change, food crisis and energy crisis.

On Ukraine, the Xinhua report adds:

“The two sides also exchanged views on the Ukraine crisis. Xi stressed that China insists on promoting peace talks, expressing the belief that prolonging and complicating the crisis is not in the interests of all sides. China supports the EU to demonstrate strategic autonomy, lead the construction of a balanced, effective and sustainable European security architecture, and achieve lasting peace and stability on the European continent, Xi added.”

Next, there’s a report on Xi’s chat with Cote d'Ivoire's President Alassane Ouattara. Xinhua reports:

“Xi said that China highly appreciates Cote d'Ivoire's firm adherence to the one-China principle, and is willing to continue to support each other on issues involving their respective core interests, consolidate and deepen China-Cote d'Ivoire relations, and push bilateral ties to new heights. Noting that China-Cote d'Ivoire cooperation enjoys broad prospects, Xi said that China stands ready to strengthen cooperation with Cote d'Ivoire across the board, expand trade in agricultural produce, enhance bilateral cooperation in planting and processing rice and cocoa, and supports Cote d'Ivoire to expand and strengthen its cocoa industry. He expressed the hope that the relevant projects supported and constructed by the Chinese side will be completed as soon as possible and brought into play. China stands ready to continue to encourage Chinese enterprises to invest and do business in Cote d'Ivoire, and expand bilateral cooperation in such fields as digital economy and new energy, he said. China, Xi said, appreciates Cote d'Ivoire's governing philosophy of attaching equal importance to development and security, and is willing to strengthen policy exchanges with Cote d'Ivoire, conduct cooperation in line with the needs of Cote d'Ivoire and provide support within its capacity. China has always been enhancing its unity and cooperation with African countries on the basis of the principles of sincerity, real results, affinity and good faith and with a commitment to the greater good and shared interests, Xi said, adding that China stands ready to continue to implement with concrete actions the Global Development Initiative and the action plans of the Forum on China-Africa Cooperation (FOCAC) to boost Africa's development. China is willing to work with Cote d'Ivoire and other African countries to uphold international fairness and justice as well as the common interests of developing countries, Xi added.”

Interesting that Ouattara’s remarks reported by Xinhua do not mention GDI, but they do mention BRI.

On Page 2, there’s an article praising the election of the new central committee with Xi Jinping as the core and Xi’s leadership and the blueprint that has been drawn for the future. It says that “having a strong leadership core is related to the survival of the proletarian Party and the success or failure of the socialist cause.” 拥有坚强的领导核心，事关无产阶级政党的生死存亡和社会主义事业的兴衰成败. Talking about the moment the new leadership was unveiled, it says: “With the Party Central Committee with Comrade Xi Jinping at its core at the helm, the century-old party will surely create new historic achievements with new great struggles.” 这一刻，新时代领航者的自信、担当，通过直播信号传遍神州大地，全党全国各族人民信心倍增：有以习近平同志为核心的党中央掌舵领航，百年大党必将用新的伟大奋斗创造新的历史伟业.

On Page 3, there’s a report on Wang Yi’s meeting with France’s Catherine Colonna. Xinhua reports:

Wang said that “China-France ties have withstood the test of changes and chaos, maintained overall stability, and showed a positive momentum of development. China is willing to have closer high-level exchanges with France, deepen pragmatic cooperation in economy, trade, agriculture, and aviation, and promote greater development of the China-France comprehensive strategic partnership in the new year, Wang said. He said that China is ready to strengthen strategic communication with France to inject new impetus into bilateral practical cooperation and make joint contributions to the sound development of China-EU relations, as well as world and regional peace and stability. Wang stressed that China will continue to optimize and adjust COVID-19 prevention and control measures to provide more convenience for personnel exchanges between China and foreign countries. ‘China's economic prospects are promising, and the super-large-scale market potential will be released faster to bring greater opportunities to other countries, including France,’ Wang said.