Chinese authorities are exploring innovative approaches to bolster government revenue amid declining land sales, with a recent Communist Party document allowing local governments to own and sell public data, akin to land sales. This shift recognizes data as a production factor, a concept that has been gaining traction since 2020. As local governments face challenges from dwindling income from traditional land auctions, they are increasingly viewing public data as a valuable fiscal asset. The Central Committee's recent policy document supports local control over public data, paving the way for municipalities to monetize this resource effectively. For instance, Guangdong province has already proposed regulations to govern authorized public data operations, indicating a proactive approach to harnessing data for economic benefit. The government aims to establish comprehensive rules for public data usage by 2025, which could significantly impact the landscape of local governance and economic strategy in China [d48d849d].
In parallel, the city of Lishui in Zhejiang province is testing a new land auction approach by allowing individuals to bid directly on land, breaking from the traditional model that restricts sales to property developers. This experiment is part of broader efforts to revitalize the real estate market and explore alternative revenue streams for local governments. The existing land auction system has faced significant challenges, including reduced revenues and financial difficulties among developers. The Lishui initiative aims to determine whether direct sales to individuals can enhance government revenue and potentially serve as a model for other cities. However, experts caution that while this experiment may provide insights, it is unlikely to lead to widespread changes across the country, given the entrenched nature of the current land management practices [56644056][ed0d553a].