The Chinese government is actively implementing strategies to expedite the establishment of its digital economy, which is a significant area of development. Nevertheless, notable disparities exist among regions in terms of the advancement of the digital economy, resulting in a substantial "digital divide" among provinces. The incorporation of digital skills is essential for attaining optimal productivity and effectiveness in the digital economy. Research has shown that increasing the availability and accessibility of financial services has an important beneficial effect on the development of the internet-based economy, especially in the western and central parts of the country. Technological innovation plays a key role in promoting digital economy development. The digital economy has exhibited substantial progress, yet it has also displayed a notable inequality, without any observed tendency towards convergence. The digital economy plays a significant role in promoting common prosperity, exerting a dynamic and nonlinear influence. It also has spatial spillover effects and resource allocation efficiency plays a mediating role in promoting common prosperity. Extensive research has been carried out on the advancement of China's digital economy, encompassing investigations into variations across regions, the expansion of financial services, technological advancements, and the influence on overall societal well-being.
China’s digital economy is among the most vibrant in the world growing at an exponential rate that can be outcompeted by few. This sector is also gradually becoming one of the dominant forces in the national economy. At the same time, China is on the move to achieve a balance between scrutinous regulatory measures and innovation stimulation. A core factor in rebooting the sluggish economy, the digital economy presents a range of dynamic growth and investment opportunities.
In 2021, the digital economy reached US$7.1 trillion (RMB 47.94 trillion), ranking second after the United States, according to a white paper issued by the China Academy of Information and Communications Technology (CAICT). Statistics also show that the digital economy’s share in the national GDP, measured by the combined value of technology products and integrated digital inputs, reached 39.8 percent in 2021, up from 20.9 percent in 2012.
The country aims to raise the proportion of the added value of core digital economy industries in its GDP to 10 percent in 2025, up from 7.8 percent in 2020.
By 2025, China will see the digital transformation of industries reach a new level, digital public services will become more inclusive, and the digital economy governance system will improve noticeably.
China will strengthen its support of 6G research and development, enhance innovation in strategic fields such as integrated circuits and artificial intelligence, and facilitate the development of new business modes.