China will employ a raft of well-focused policy steps to foster a more enabling climate for the development of the digital economy, the State Council, the country’s Cabinet, announced on Friday.
Topping the agenda are priorities like improving data infrastructure and relevant institutional systems, and promoting market-oriented allocation of data resources. Given the far-reaching impact of the digital economy, emphasis should be placed on comprehensively integrating these technologies with the real economy, to provide a solid underpinning for economic and social development, according to the State Council executive meeting chaired by Premier Li Qiang.
China’s total data output reached 32.85 zettabytes in 2023, up more than 22% year-on-year, while the added value of core digital economy industries accounted for 10% of GDP, according to the National Data Administration.
“China is set to prioritize relevant institutional reforms this year, aiming to unleash the potential of the country’s vast data resources and transform them into a new competitive advantage,” said Liu Liehong, head of the administration, during the Global Digital Economy Conference 2024 on Tuesday.
The administration plans to roll out eight institutional documents, focusing on areas such as data property rights, data circulation, security governance, and data infrastructure construction.
The rapid development of China’s digital industries came on the back of robust digital infrastructure. Recent statistics from the Ministry of Industry and Information Technology showed that the country had built 3.837 million 5G base stations by the end of May, accounting for 60% of the global total.
Friday’s meeting also announced that efforts will be made to enhance the innovation capabilities of platform companies and promote the sustained and healthy development of the platform economy.
The market value of China’s platform economy surged from 4.97 trillion yuan in 2015 to 33.43 trillion yuan in 2022, with a compound annual growth rate of 32.92%. Furthermore, the number of Chinese platform unicorns reached 254 by the end of 2022, marking an increase of 190 companies compared to 2015.
As China continues to prioritize the development of the digital economy, these targeted policy measures are expected to unlock the full potential of the country’s vast data resources and drive the transformation of the real economy.
