China boosted by massive growth in digital economy

China has seen a huge increase in the size of its digital economy, which has grown by $4.1 trillion over the past seven years, according to a new study.

A research report, presented to the Global Digital Economy Conference 2023 in Beijing, said China’s digital economy growth during 2016-2022 amounted to an annual growth rate of 14.2%.

The sector grew to 50.2 trillion yuan (about $6.96 trillion) in 2022, accounting for 41.5% of the country’s GDP, making it “an important engine for stable growth and transformation”, the report said.

Mei Hong, from the Chinese Academy of Sciences, told the conference that China’s digital transformation is advancing from the consumption and services sectors to the manufacturing sector in the real economy.

He said the data shows that in 2022 the operating income of China’s electronic information manufacturing industry was 15.4 trillion yuan, while the software business made 10.8 trillion yuan and big data industry made 1.57 trillion yuan.

The Xinhua news agency reported that “the surge in China’s digital economy comes amid countries around the world accelerating the development of key areas of the digital economy, and actively seizing development opportunities in fields such as digital technologies and industries, industrial digitalisation and data elements”.

It reported that, by March 2023, some 256 network operators in 95 countries and regions had commercialised 5G technology, with 1.15 billion 5G users worldwide and a 30.6% population coverage rate of 5G network, an increase of 5.5% year on year.

In 2022, the revenue of the global artificial intelligence market climbed to $450 billion, up 17.3% year on year.

The number of global digital economy unicorn enterprises was recorded at 1,032, accounting for 75% of global unicorn enterprises, with an estimated value of 25 trillion yuan, according to the report.

At the Global Digital Economy Conference 2023, Ahmed Abdel Hafez, chairman of the executive bureau of the Egyptian supreme cybersecurity council, said China’s achievements in the development of the digital economy have attracted worldwide attention.

He said China’s opening-up has created development opportunities for other countries, and given them the chance to share the development dividends of China’s big market.

Beijing and 18 partner cities also released the global digital economy partnership city cooperation initiative at the opening ceremony of the conference.

The initiative covers aspects such as accelerating the digital transformation process of cities, green development through digital empowerment, and supporting global digital inclusive cooperation.

It aims to build an open innovation network for the digital economy between global cities and within multi-bilateral frameworks.

The partner cities include Abu Dhabi, London, Macao, San Francisco, Vienna, Vientiane and Zaragoza.

 

UK companies exploiting opportunities in Shanghai

Shanghai provides important trading opportunities, according to representatives from business associations and enterprises in the UK

Speaking at a recent event to promote investment in the Chinese economic hub, Andrew Seaton, chief executive at the China-Britain Business Council (CBBC), said: “This sort of event is a great opportunity for businesses to put China, especially Shanghai, back onto their radar… as a trade and investment destination.”

British companies have “a very strong sense of commitment” to the Chinese market, Seaton said.

The event, called Invest Shanghai, offers a platform to facilitate foreign investment in Shanghai, and delegates from Shanghai gave presentations to showcase the city’s development and business opportunities.

“Shanghai is a window for exchanges between China and the UK, a great way for British companies to enter the Chinese market, and also a bridge house for Chinese enterprises to venture into the British market,” said Xie Dong, vice mayor of Shanghai.

According to Xie, by the end of 2022, the UK’s cumulative investment in Shanghai had been over $3.8 billion (£2.9 billion), while Shanghai enterprises had invested more than $4.7 billion in the UK.

“By joining forces, we can create a powerful synergy that opens doors to countless possibilities,” said Neil Bridgen from London & Partners, which is the Mayor of London’s official promotional company and responsible for promoting London internationally.

Shanghai and London can “drive innovation, accelerate business growth and foster cultural exchanges through cooperation”, he added.