The Future Of Data Monetization Is Now: Lessons From The U.S. And China On The Data Economy
Nino Letteriello is a data and project management leader, DAMA Award winner, WEF author, UN advisor, MIT lecturer & FIT Group founder.
gettyGetting a clear picture of what organizations are actually doing with data and AI remains a challenge. For me, having access to real-world cases is crucial, as it allows me to build a more personal, firsthand understanding of the issues most relevant to my work.
This is why I was particularly intrigued when, while researching and browsing the web, I came across a report entitled “The People’s Republic of Data: How China Is Turning Data into Capital,” published by the U.S.-China Economic and Security Review Commission, an independent agency of the legislative branch of the U.S. government established by the U.S. Congress in October 2000. Its mandate is to monitor, analyze and report to Congress on the national security implications arising from the trade and economic relationship between the United States and the People’s Republic of China.
My surprise was enormous. We’re talking about an in-depth examination of a topic that’s widely discussed but still poorly understood in practice and, moreover, is being analyzed in the context of one of the most important countries in the world.
I approached the report with great curiosity. It brings together a fascinating intersection of themes: the data economy, data monetization and, ultimately, the transformation of data into a genuine form of economic capital within the market.
To provide some general background, China has been systematically building a data-driven economy since 2020 by treating data as genuine economic capital. This initiative spans dedicated exchange infrastructures, ongoing efforts to resolve data quality and regulatory standards and financial mechanisms that allow companies to list data as intangible balance sheet assets. Ultimately, I believe this approach offers a potential road map for transforming traditional industries and redefining how corporate data value is formally recognized.
The report concludes by acknowledging that the U.S. (and, for that matter, many other countries) haven’t followed a path similar to China’s. At the same time, it suggests that these initiatives linking data to economic value could encourage the digital transformation of traditional sectors, which may see the data economy framework as a road map for technological progress.
My personal key takeaway is that the data economy is a fascinating challenge yet an extremely complex one from multiple angles.
While Europe has tried to spur movement with regulations such as the Data Act and the Data Governance Act to encourage data sharing, China’s experience shows that even a giant backed by massive state intervention needs time, infrastructure and both legal and fiscal frameworks.
The question then becomes whether it makes sense for an organization to pursue data monetization. In my view, the answer is yes, but perhaps in a different way than China’s top-down approach.
Looking at an individual company, it’s unrealistic to expect an organization to tackle such complexity on its own without a supporting national framework, which even analysts consider to be still incomplete in China. What companies can do, however, is draw best practices from the Chinese experience and apply them internally.
This starts with a clear understanding of what data monetization actually means and its potential, a cultural transformation that can begin directly within data departments. In practice, while respecting regulatory boundaries, this means being less protective of internal data, a common barrier I’ve frequently observed, and viewing it as an asset to be shared or sold.
The next step is developing lean processes to identify the most promising, marketable data while embedding strong data quality practices.
The final step is to experiment in this space. Rather than rushing to build a data marketplace that no one will use, the focus should be on identifying stakeholders who might actually be interested in the organization’s data and experimenting repeatedly to see if it’s a path worth pursuing.
Keep in mind that, beyond this fascinating report, as Douglas Laney teaches us in Infonomics, data monetization goes beyond the direct sale or barter of data. It also encompasses any action that generates measurable economic value: time savings, data-informed strategic decisions or the smart reuse of existing data. Ultimately, if it creates economic value, it’s monetization.
The report demonstrated that while a viable path to data monetization exists, it’s inherently complex. The challenge for individual organizations is learning how to translate a massive, government-driven initiative such as China’s into a focused set of practical steps worth experimenting with.
Ultimately, building a culture that measures the tangible economic value of data initiatives, especially in the age of AI, marks a significant leap in organizational maturity for any company.
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