On July 4, 2025, the National Data Bureau and the General Office of the State Administration for Market Regulation (SAMR) jointly issued the Model Contracts for Data Trading and Circulation (hereinafter referred to as “the model contract”) to regulate the growing data market and establish a standardized framework for data transactions. This initiative supports the national strategy of enhancing data circulation security and unlocking the value of data as a key factor of production, in alignment with several key policy documents, including:

·         Opinions of the Central Committee of the Communist Party of China and the State Council on Building Foundational Data Systems to Better Leverage the Role of Data as a Factor of Production

·         Implementation Plan on Improving Security Governance in Data Circulation to Further Promote the Marketization and Value Realization of Data as a Factor of Production

·         Government Work Report (2024)

Developed by the National Data Administration and other departments, the model contracts standardize rules for data transactions while preserving party autonomy and clarifying stakeholders’ rights and duties. They are designed to facilitate lawful and efficient data flows across four key scenarios:

·    Data Provision Contracts, governing the transfer of data rights

·   Data Entrusted Processing Service Contracts, regulating entrusted data handling

·   Data Fusion and Development Contracts, facilitating collaborative data innovation

· Data Intermediary Service Contracts, standardizing brokerage services in data trading and circulation

Each contract includes essential clauses covering data description, quality assurance, delivery protocols, security requirements, and confidentiality, along with scenario-specific provisions such as data verification, intellectual property arrangements, and profit distribution. And some key measures and innovations that the model contracts contain are summarized as below:  

·   Contract-based Data Ownership Registration: The model contracts introduce data registration clauses that allow parties to formally record data rights through contractual agreements. This mechanism aligns with China’s Tripartite Data Rights Separation Model (holding rights, usage rights, and operation rights) and provides legal clarity in case of disputes.

·   Comprehensive Data Quality Assurance: For the first time, the contracts establish end-to-end quality control measures, including inspection periods, dispute resolution mechanisms for non-compliant data, and presumed liability for unresolved defects. Data fusion contracts explicitly require accuracy, and completeness checks to ensure reliability in collaborative projects.

·     Standardized Data Trading and Circulation Practices: The contracts translate China’s data laws into enforceable terms, offering clear guidance to data-intensive industries such as telecommunications. They introduce measurable data quality standards, ownership verification processes, and secure data delivery protocols. Important data and personal information must be strictly anonymized, with mandatory pre-delivery security assessments and standardized data classification reporting.

In summary, the model contracts provide a structured approach to data transactions by clarifying rights, establishing quality standards, and reinforcing compliance. This framework mitigates risks related to data integrity, sensitive data handling, and personal information protection, thereby supporting more efficient and secure data transactions and promoting the sustainable growth of China’s data marketplace.

BESTAO presents free monthly report on China compliance. It offers a comprehensive solution on observing various standards and regulatory activities in China. Sample of the monthly report please refer to：

https://www.bestao-consulting.com/detail?id=1740&status=bestao_library

Subscribe the free monthly report by writing an email to assistant@bestao-consulting.com.