A pilot project aimed at opening up and interconnecting logistics data will be implemented in 16 Chinese cities. This initiative was announced on February 15

by the National Development and Reform Commission, the National Data Administration and other government departments.

The primary objective of the project is to address challenges within the logistics industry by dismantling "information silos." Said "silos" refer to situations where data and information are isolated within a specific department, organization or system, preventing them from being accessible or shared with other departments, organizations or systems.

This will involve integrating data from government departments, related enterprises, and operators of ports, highways, railways and aviation. The initiative will also establish standards for classifying and exchanging logistics data, ultimately creating a comprehensive and accessible logistics data-sharing platform that can be utilized nationwide.

According to the initiative, the pilot project is expected to be completed by the end of the year.

In recent years, China has made remarkable progress in advancing the digital economy and improving the efficiency of public services. According to figures from the Cyberspace Administration of China, as of late 2023, 92.5 percent of the country's matters requiring administrative approval at the provincial level had been processed online. As digitalization continues to evolve rapidly, data governance has emerged as a pivotal area for the government, enterprises and even the nation as a whole.

However, as China works to enhance its economy, the management and utilization of data face severe challenges due to the earlier mentioned information silos.

These silos occur when different systems or departments lack effective data sharing and collaboration, resulting in disconnected data and isolated information. This fragmentation not only hampers the effective use of data but also limits the further development of the digital economy, leading to a waste of valuable data resources.

The digital economy is increasingly considered an essential driver of future economic growth, and breaking down information silos is essential for fostering digital transformation and achieving high-quality economic development.

For government decision-making, information silos hinder data sharing among different government departments, negatively impacting the efficiency and quality of public services. By breaking down these silos, data can flow freely between departments and systems, enabling decision-makers to access more comprehensive and realtime information. 

This enhanced data accessibility allows for better-targeted decisions and improved government service efficiency. Additionally, with shared data platforms, different departments can communicate and collaborate more rapidly, reducing communication costs and enhancing overall operational efficiency.

Information silos also impede the coordinated development of different industries. The dismantling of these silos can achieve integrated data applications across the manufacturing, trade and logistics sectors. This integration promotes data exchange and sharing between the upstream and downstream components of supply chains, facilitating industrial upgrading.

Enhanced data sharing optimizes resource allocation, reduces transaction costs and improves overall business efficiency, thereby promoting the effective operation of enterprises. Furthermore, it enables the integrated application of international logistics data, allowing for the comprehensive tracking of cross-border logistics throughout the entire process.

Dismantling information silos is an important strategy for China to advance digital transformation, improve public services, strengthen social governance capabilities, facilitate industrial upgrading and reduce social costs.

It is also a vital measure for achieving high-quality development. Breaking down these silos will promote the effective application and sharing of data resources, generating new momentum for economic development and fostering social development in a more efficient, equitable and sustainable manner.

This approach will enable China to build a smarter, more efficient and secure data ecosystem, providing powerful support for high-quality economic development.

Copyedited by Elsbeth van Paridon 

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