China’s digital economy on the rise new engine, new opportunities – global times dutch apple pie topping recipe

File photo taken on nov. 12, 2017 shows a giant screen displaying total gross merchandise volume (GMV) of alibaba’s online marketplace tmall for singles’ day shopping spree in shanghai, east china. Sales hit 168.2 billion yuan (about 26.5 billion U.S. Dollars) in 24 hours of tmall global shopping festival on nov. 11, 2017. With a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china. The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday. Behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/huang zongzhi)

digital economy


With a fortune of 295 billion yuan (about 46.6 billion US dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china.

The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday.

Tencent and alibaba are china’s top two companies in terms of market value, a stark contrast to just five years ago when no internet companies even made the top 10.

The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies.

A booming digital economy is reshaping china’s economic landscape as technology such as big data and AI revives traditional industries and casts new light on high-quality development.

China’s digital economy totaled 26 trillion yuan in 2017, accounting for around 32 percent of national GDP, according to the china academy of information and communications technology.Digital economy its 18-percent growth substantially outpaced the overall economy, which grew 6.9 percent in 2017.

"China is already more digitalized than many observers appreciate and has the potential to set the world’s digital frontier in coming decades," the mckinsey global institute said in a recent report titled "china’s digital economy: A leading global force."

China is the world’s largest e-commerce market, accounting for more than 40 percent of the value of worldwide transactions, up from less than one percent a decade ago. In terms of mobile payments, china has a transaction value 11 times that of the united states, according to the report.

"The digital economy is making greater contributions to the national economy and rising as a fresh driver of economic transformation and upgrades," said lin nianxiu, deputy head of the national development and reform commission, the country’s top economic planner.

On platforms offered by the internet giants, you can do almost everything with just a click on your smartphone — ordering groceries, transferring money, watching movies, booking holidays, and even managing your stock market portfolios.Digital economy

Ms. Sun from beijing is a busy woman, but house-proud and concerned about stubborn kitchen stains and ice buildup in her freezer. Now she has an app on her phone that brings professional cleaners to her door to solve her problems in no time at all. "It saves me time and energy," she said.

The mobile internet is breeding new professions and new industries with tailored services only a few taps away. The digital lifestyle is the real new normal: mobile payments, mobile entertainment, mobile socializing and even "mobile officing."

About 531 million chinese people now make online payments of some sort, 12 percent more than the previous year, according to the china internet network information center (CNNIC).

Over 300 million people are ordering meals online, creating a market of online food ordering worth 204.6 billion yuan in 2017, 23 percent more than 2016, according to the institute of meituan-dianping, an online platform for ordering food and booking movies and restaurants in january.Billion yuan

China’s booming digital economy has been based on the bigger, younger china market, which has enabled rapid commercialization of digital business models on a large scale, said the mckinsey report.

In 2016, china had 731 million internet users, more than the european union and the united states combined. And nearly one in five internet users in china relies on mobile only, compared with just 5 percent in the united states, according to the report.

Baidu, alibaba and tencent, collectively known as BAT, have been spending huge on developing a multifaceted and multi-industry digital ecosystem that touches almost every aspect of consumers’ lives.

The functionality offered by their "super apps" has increased about seven times since 2011. Beyond BAT, other digital innovators such as xiaomi and netease and traditional players such as ping an are building their own ecosystems.

Supportive policies have also played a pivotal role. The digital economy is part of the government’s vision of an economy driven by innovation, a plan to make economic growth more sustainable and domestic companies more competitive globally.Billion yuan

The government has rolled out an array of policies such as "made in china 2025" and "internet plus" strategies to spur the integration of internet technologies and manufacturing, as well as other traditional sectors.

Now it is easier than ever to set up a business, not just in terms of administrative procedures and government approvals, but also through a plethora of novel financing vehicles for start-ups.

As for-hire bikes flood city streets and cashless diners pay for meals by phone, the digital economy just keeps expanding, and more and more foreign firms are jumping in for a slice of the pie.

Apple is desperate for a bigger piece of the mobile payment market dominated by wechat and alipay. In july last year, apple pay launched its biggest marketing campaign since entering china, offering perks including discounts of up to 50 percent on purchases for a week.

Total online retail sales reached 7.18 trillion yuan in 2017, a third more than a year before and, while chinese firms alibaba and JD.Com dominate, US rival amazon is making inroads.Billion yuan

In june of 2017, amazon partnered with migu, a china mobile subsidiary with one of the country’s largest mobile reading platforms, to create a new kindle exclusively for chinese readers.

On black friday last year, sales at amazon china were double the previous year’s. The number of cross-border shoppers using the site has risen 22-fold in just two years.

US home-sharing company airbnb has said it plans to more than triple the size of its china workforce this year and double its investment in the market to better serve chinese travelers.

China is in the top three in the world for venture-capital investment in key types of digital technology, including virtual reality, autonomous vehicles, 3-D printing, robotics, drones and AI, it said.

Tim clancy (1st R), an australian who has lived in hangzhou for six years with his chinese wife, takes his american friend to buy breakfast through mobile payment in hangzhou, east china’s zhejiang province, april 14, 2017.Digital economy with a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china. The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday. Behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/huang zongzhi)

File photo taken on aug. 16, 2016 shows a citizen using alipay for payment on bus no. 506 in hangzhou, east china’s zhejiang province. With a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china.Digital economy the business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday. Behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/xu kangping)

File photo taken on may 25, 2017 shows a demonstration center of guizhou big data pilot zone in guiyang, southwest china’s guizhou province. With a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china. The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday.Billion yuan behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/liu xu)

Drones carrying six boxes of passion fruit fly from putian to meizhou island, southeast china’s fujian province, oct. 31, 2017. With a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china. The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday. Behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/tian ye)

billion yuan

File photo taken on oct. 30, 2014 shows a visitor consulting at an exhibition stand of amazon during an e-commerce expo in hangzhou, east china’s zhejiang province. With a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china. The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday. Behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/han chuanhao)

File photo taken on april 15, 2016 shows robot "jia jia" (L) posing for a photo at the campus of university of science and technology of china in hefei, east china’s anhui province.Digital economy with a fortune of 295 billion yuan (about 46.6 billion U.S. Dollars), ma huateng, founder and CEO of internet giant tencent, is now the wealthiest person in china. The business leader, also known as pony ma, has jumped 23 places to be ranked 15th globally, according to the hurun global rich list 2018 released on wednesday. Behind the rise of ma and his company is china’s flourishing digital economy, which has been a story of commercial success. The digital economy is not only reshaping the chinese economy and changing people’s day-to-day life, but also creating enormous business opportunities for foreign companies. (xinhua/liu junxi)