Recently disclosed data shows that from 2018 to 2023, four Chinese government departments including the Ministry of Transport and the Ministry of Education have illegally operated fees using the government data they controlled, amounting to 248 million yuan.
The 2023 budget implementation audit report released by the Chinese Communist Party’s audit department revealed that 7 maintenance units belonging to the four central departments did not obtain approval to set their own data content, service forms, and fee standards. They collected a total of 248 million yuan in fees from external parties based on 13 system data.
Specifically, from June 2018 to 2023, two units under the Ministry of Transport’s enterprise illegally collected 145 million yuan using 4 information system government data. The Ministry of Education’s two units illegally collected 58.657 million yuan from 2018 to 2023 using 3 information system government data. The Ministry of Industry and Information Technology’s two units collected 24.4707 million yuan from 2020 to 2023 using 5 information system government data. The State Administration for Market Regulation’s enterprise under one unit illegally collected 20.2455 million yuan from December 2019 to 2023 using 1 information system government data.
The report also indicated that besides profiting from government data, these departments have also been burdening grassroots with activities such as using festive forums and exhibitions, conducting illegal training and recognition events incessantly.
In response to this, Chen Jihong, a partner at Zhong Lun Law Firm, analyzed on Caixin’s website that the report may be pointing towards profitable activities involving providing paid information services to the public. For instance, citizens may need to pay through specific websites to access certain information.
Chen Jihong believes that if the relevant government and public data are legally mandated, then there should be an obligation to make them openly available, and government departments cannot set any barriers.
Sun Cheng, a senior partner at Shanghai Da Bang Law Firm, stated that “profiting from government data” could involve the illegal trading of data that originally could only circulate within government agencies, or collaborations with market entities through illegal means to monopolize data that should require strict approval processes to access, thus sharing profits.
On November 10, 2023, Hengyang City once put up for auction the franchise rights for government data resources and smart cities with a reserve price of 1.802 billion yuan. However, the transaction sparked tremendous controversy and was withdrawn five days later.