Tianjin, China – The digital economy in China surged by $4.1 trillion from 2016 to 2022, which works out as a compound annual growth rate of 14.2 percent, a research report presented at the Global Digital Economy Conference (GDEC) 2023 revealed, reported by Xinhua.
By 2022, the scale of China’s digital economy had reached an impressive 50.2 trillion yuan ($6.99 trillion), constituting a substantial 41.5 percent of the nation’s GDP.
The surge in the digital economy has forced many traditional Chinese companies to pivot towards digital transformation to stay competitive and thrive. One such example is Giant DC, a company that previously specialized in heavy machinery manufacturing. Giant DC shifted its focus to becoming a digital economy enterprise in response to overcapacity issues in the steel industry and mounting environmental pressures. They now concentrate on constructing internet data centers and engaging in businesses like cloud computing and data services.
Collaboration with technology leaders has also been a key driver of transformation. ABT Plastics & Electronic (Tianjin) Co. a medium-sized enterprise, partnered with Huawei Cloud to modernize its aging enterprise resource planning system. This strategic alliance enables them to improve online production and management capabilities, connecting with broader social resources.
The rapid growth of cloud-based digital transformation has been instrumental in reshaping traditional industries, as highlighted by Lin Zhiyong, General Manager of Huawei Cloud Tianjin office.
“Cloud-based digital transformation is continuing to grow at a high rate,” Zhiyong said.
China has established over 1,700 digital workshops and smart factories. Similarly, more than 240 industrial internet platforms with regional and industry influence have been developed.
In Tianjin, the digital economy’s contribution to the gross regional product is set to surpass 55 percent by the end of the year, the GDEC report said.
The digital economy also plays a pivotal role in job creation. China’s National Occupation Classification Code identifies 97 digital occupations, accounting for 6 percent of the total, offering promising employment prospects. The sector is promoting the restructuring of production factors, fostering new industries, and creating new business models, ultimately contributing to global economic recovery.
Nail Olpak, President of the Foreign Economic Relations Board of Türkiye, recognizes China’s global leadership in the digital economy and its role in popularizing e-commerce, even in the face of global economic challenges.