by FANG Zhuoran

On August 15, 2025, the Lingang New Area Administration released the Construction Plan for an International Data Processing Hub in Lingang New Area and launched the project. The plan outlines five core tasks and 15 measures to ease cross-border data flows, capture opportunities from global industry shifts, and strengthen China's role in digital trade.

Wang Liang, an official at the Data Division of the Lingang Administration, said the hub is intended as a testing ground for institutional innovation and risk management. It aims to become the preferred site for Chinese digital enterprises going global, a springboard into international data processing, and a platform to enhance the digital capabilities of firms already overseas.

While Hong Kong and Singapore have strong legal frameworks, Wang noted their high costs and limited capacity. Countries such as Malaysia offer cheaper labor but weak infrastructure. "China's advantages are becoming clearer," he said, citing competitive costs, strong computing power and telecom infrastructure, while acknowledging compliance and geopolitical risks remain.

At the heart of the project is a new international data center system, with core nodes, edge nodes and business zones. Core nodes already link Lingang with Hong Kong, Singapore and Tokyo via undersea cables for secure, low-latency transmission. Edge nodes provide computing power for data storage and processing, while business zones offer shared or dedicated space for international data trials.

The Shanghai Digital Overseas Service Base, jointly set up by the Shanghai Municipal Data Bureau and Lingang Administration, also opened on Friday. It will provide one-stop support for firms expanding abroad. CATARC Lingang Data Technology said policies such as pooled international data line purchases can cut approval times by a month and reduce fees by up to 80 percent.

Twelve companies have joined the pilot, including Shanghai Junyue Shenghui Technology Co, which specializes in advertising strategy analysis. General manager LIU Xinyu said new cross-border policies allow the company to serve clients in Taiwan and Southeast Asia, after being unable to expand for years. It has already begun trials in five countries.

Looking ahead, Lingang plans to focus on sectors such as data processing, digital cultural exports, digital services and cross-border livestreaming, aiming to become the preferred destination for digital trade and China's hub for supporting companies going global.