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Digital transformation is at the forefront of Mainland China’s economic growth

China’s digital economy maintained its growth rate at 9.7 percent to USD6.16 trillion in 2020

China has been seeking cooperation with the international community in an effort to promote digital trade and governance. LIPING/Shutterstock

Mainland China has been exploring all aspects of digitalisation, especially when it has been beneficial to the country’s economy, as reported by OpenGov Asia. As a result, the State Council announced a plan to further stimulate the digital economy during the 14th Five-Year Plan (2021-25) period.

In recent years, digital economic activities have risen at an exponential rate, eventually becoming one of the primary drivers of the national economy.

China’s digital economy maintained its growth rate at 9.7 percent to CNY39.2 trillion (USD6.16 trillion) in 2020, accounting for approximately 38.6 percent of the country’s GDP. The goal is to improve the proportion of core digital economy industries’ added value in GDP to 10 percent by 2025, which is a significant increase from 7.8 percent in 2020.

By 2025, the digital transformation of the nation’s sectors is expected to consist of more inclusive digital public services and an improved digital economy governance structure.

Xi Jinping stressed the importance of digital economy as a strategy for gaining fresh opportunities, as it fosters a new development paradigm, a modern economic system, and new national competitive advantages.

More: Mainland China finishes off Q1 with 4.8% economic growth

Over 90 percent of daily transactions in China are conducted via smartphones, making China one of the top adopters of QR codes. The country is also using digital coupons to help it achieve sustainability under the global Net-Zero by 2025 initiative.

China has been seeking cooperation with the international community in an effort to promote digital trade and governance, according to Xinhua.

The country submitted an application for the Digital Economy Partnership Agreement (DEPA) last November. DEPA, signed by Chile, New Zealand, and Singapore, regulates digital trade by managing data flows, data protection, and artificial intelligence, all of which are integral to the digital economy.

Since the bilateral free trade agreement (FTA) took effect in 2008, China has become New Zealand’s largest e-commerce market. Damien O’Connor, Minister for Trade and Export Growth,  believes that the recently improved bilateral FTA will make digital trade between the two countries even easier.

The Property Report editors wrote this article. For more information, email: [email protected].

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