Published by ChinaMNC ยท Huanggang
Shandong Province Data Industry Development Plan: Key Takeaways for Foreign Founders
Shandong's new data industry policy outlines targets, incentives, and infrastructure for data enterprises. Here's what foreign founders need to know about registering and operating in China.
Shandong Province Data Industry Development Plan: Key Takeaways for Foreign Founders
Foreign founders considering establishing a data-related business in China should pay attention to a recent policy from Shandong Province. The provincial government has issued implementation opinions to accelerate the high-quality development of the data industry, with a strong focus on leveraging data as a production factor and artificial intelligence. For foreign entrepreneurs, this policy signals opportunities in one of China's key economic provinces.
Targets and Business Environment
The plan sets specific goals for 2028: Shandong aims to have more than 25,000 data enterprises, including over 70 listed companies and more than 500 unicorn and gazelle enterprises. It also targets the formation of over 30 data industry clusters and an average annual growth rate of over 20% for the data industry. By 2027, the province plans to build more than 50 high-quality industry datasets across 16 key fields such as scientific research and healthcare. These targets indicate a supportive environment for data companies, but foreign founders should note that they still need to comply with China's foreign investment laws and registration requirements.
Support for Data Enterprises
The policy outlines several measures to cultivate data enterprises. A provincial cultivation database will be established for six types of data enterprises: data resources, data technology, data services, data applications, data security, and data infrastructure. A tiered cultivation action will identify and support growing data enterprises, with eligible ones receiving financial services and computing power support. Traditional enterprises are encouraged to spin off data business entities, and third-party institutions such as law and accounting firms can expand into data-related services like compliance certification and security audits. Foreign founders may find opportunities in these areas, either by establishing their own data enterprise or partnering with local firms.
Key Industry Directions
The plan emphasizes data annotation and processing, data resource development, and data asset monetization. It supports the development of intelligent annotation and 4D annotation technologies, and encourages enterprises to form innovation consortia with universities and research institutes. Public data authorized operation agencies are encouraged to enrich data products, and new business forms such as data brokerage and data consulting are promoted. For foreign founders, these areas may offer entry points, but they should be aware that data-related activities are subject to regulations on data security and cross-border data transfer.
Fostering Data Industry Clusters and Collaboration
Shandong plans to build high-standard data industry clusters in Jinan and Qingdao, and encourage other cities to develop specialized clusters. The policy supports chain-leading enterprises to integrate data resources across the supply chain and provides data and computing power convenience to small and medium-sized enterprises. A provincial data industry map and lists of projects and scenarios will be created. Foreign founders should consider locating in these cluster areas to benefit from agglomeration effects, but they must also navigate local registration and zoning requirements.
Dual Empowerment with AI and Traditional Industries
The policy promotes the integration of data with artificial intelligence, encouraging new business models like data-as-a-service, knowledge-as-a-service, and model-as-a-service. It supports building high-quality datasets and industry knowledge bases to train AI models. Additionally, it encourages data enterprises to collaborate with traditional industries, with traditional enterprises potentially inviting data enterprises as partners to solve operational bottlenecks. Foreign founders with expertise in AI or data analytics may find partnership opportunities, but they should ensure their business scope aligns with China's negative list for foreign investment.
Data Supply, Talent, and Funding
To increase data supply, the policy calls for expanding public data openness and encouraging enterprise data sharing under data classification and protection rules. On talent, it promotes chief data officer systems, data industry colleges, and specialized disciplines, with plans to support universities in building about 10 data-related disciplines and adding about 5 doctoral and master's programs by 2028. Funding support includes provincial fiscal funds, recommendations for central budget investments, and support for data enterprises to list, issue tech innovation bonds, or conduct data asset securitization. Financial institutions are encouraged to innovate products for data enterprises. Foreign founders should note that accessing these funding channels may require a locally registered entity and compliance with financial regulations.
Infrastructure and Going Global
The plan aims to strengthen infrastructure by building an integrated computing power service platform and supporting trusted data spaces. It also includes a "Go Global" service system, leveraging the Qingdao International Communication Business Gateway to provide low-latency, high-bandwidth international data transmission, and exploring new service models like "data processing for export" and "token export" under legal compliance. Foreign founders interested in cross-border data flows should monitor these developments, but they must adhere to China's data export security assessment and other regulations.
Overall, Shandong's data industry policy presents a range of opportunities for foreign founders, from enterprise cultivation to infrastructure and international services. However, establishing and operating a company in China involves specific legal, tax, and regulatory steps, including business registration, foreign investment filing, and sector-specific licensing. Foreign founders should conduct thorough due diligence and seek professional advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.