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Mainland China’s digital economy grows four-fold over the last decade

The nation has sped up the integration of AI, big data, and cloud computing with industries like agriculture, energy, and healthcare

Chinese firms are innovating business models that go beyond previous paradigms while also setting global standards in key aspects of the new economy. TonyV3112/Shutterstock

According to Xinhua, China’s digital economy has experienced fast growth in recent years; from USD1.65 trillion in 2012 to over USD6.7 trillion in 2021, it will have grown significantly.

The Ministry of Industry and Information Technology emphasised that during this period, digitalisation contributed 39.8 percent, from 21.6 percent, to China’s GDP.

Moreover, China is building more digital infrastructure than ever before. It had the largest and most technologically sophisticated network facilities by the end of May, covering prefecture-level cities with fibre optic networks and owning 1.7 million 5G base stations.

The nation has also sped up the integration of AI, big data, and cloud computing with industries like agriculture, energy, and healthcare.

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

Asia Times reported that Chinese firms are innovating business models that go beyond previous paradigms while also setting global standards in key aspects of the new economy. At a conference held on 14 July in Seoul, an expert noted that China has no choice but to do so as they are currently dealing with a rapidly ageing population.

Edward Tse, head of Gao Feng Advisory Co, said that firms in the online content, fast fashion, and traditional Chinese medicine sectors have all further developed their businesses. 

According to him, China had more than a billion internet and mobile internet users, and that China’s digital economy has become massive, that it has forced businesses to improve their business models in accordance with new consumer patterns.

“For a long time, China was a follower of the standards set by others, and was very good at taking those standards and applying them to platforms,” Tse said. “Now, China is becoming a setter of standards for others to follow.”

Meanwhile, Tech Wire Asia reported that the Asia Pacific region is slated to be the world’s largest data centre destination, wherein China and India are projected to see the biggest investment growth within the next two years.

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

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