The state-linked Chinese Academy of Cyberspace Studies released a report during its recently concluded World Internet Conference which notes that China’s digital economy reached 22.58 trillion yuan ($3.4 trillion) in 2016, or 30 percent of its GDP.
Why it matters: China’s digital economy has expanded significantly in recent years as the country develops its distribution and logistics chains, networks, and internet payment services. In discussing supply structural reforms in his 19th Party Congress report, Xi Jinping said that there was a need to closely integrate the internet, Big Data, and artificial intelligence with the real economy. Xi’s report makes the development of China’s digital economy an important national strategy.
We believe that the Chinese Communist Party is currently growing its digital economy as a strategy to surpass the United States.