Skip to main content

How Digital Transformation will Advance China's Economy

The global networked economy thrives on new ideas and innovation. Across the globe, more nations are making technology-centered strategies the focal point of their economic development. Amid ongoing digital transformation, the world is entering the era of the digital economy, a trend that is very evident in China.

Against this backdrop, the definition of the Four New Concepts, namely "new era, new balance, new way of thinking, and new grand goals" was proposed at the 19th National Congress of the Communist Party of China held in October 2017, outlining the direction for China's future economic development.

Five key terms were also mentioned in the report: "Cultural Revitalization, Digital Transformation, Innovation-driven Development, Globalization, and People's Well-being," serving as guidelines to the development of China’s digital economy for the years to come.

China's Digital Transformation Agenda

IDC predicts that in the next 3 to 4 years, a digital economy will reshape the economic landscape of China -- and the world as a whole -- transforming the way enterprises operate. Furthermore, innovations empowered by new technologies will play a pivotal role in the transformation.

"Industry users and ICT vendors will work collaboratively to strategize and architect new digital transformation platforms, build new trustworthy ecosystems, deliver new customer experiences, and enjoy new-era growth with digitally enhanced offerings, operations, and relationships," said Kitty Fok, IDC China Managing Director.

IDC forecasts that China’s economy will continue to see steady growth in 2018 at 6.5 percent GDP growth rate. Cultural Revitalization will stimulate the music, film, games, animation and knowledge sharing industries.


Digital Transformation will spur technological advances in information technology, intelligent manufacturing, biological medicine, energy, environmental protection, and the marine and aerospace sectors.

Innovation-driven Development will accelerate the growth in smart industrial parks, smart cities and associated technological services. Globalization will witness the advancement of the Belt and Road Initiative and Free Trade Zones. People’s Well-being will drive progress in energy saving and environmental protection, health care, recreation, and tourism.

China's broader ICT markets, especially those related to the 4 third-platform technologies and the 6 innovation-accelerators, have been growing faster than China’s GDP growth. IDC predicts that, in 2018, China’s broader ICT market will grow 7.1 percent, the third-platform market will grow 5.5 percent, and the innovation accelerator market will grow 13.5 percent.

Outlook for Digital Economy Growth in China

"Key aspects of the digital economy and its success, will rely on how business gathers, manages and monetizes data, how consumers are engaged at large scale, and how digital transformation platform is built with a good balance of both open API ecosystems versus core intellectual properties," said Lianfeng Wu , Vice President and Chief Analyst of IDC China.

According to the IDC assessment, industry users and ICT vendors should stay current on the fundamental technology enablers for a digital economy, and apply them into the core of their business operations and cultures, in order to accelerate their transformation into digital native enterprises. This is essential to achieving an all-round transformation and gaining first mover advantage in the era of the digital economy.

Popular posts from this blog

Digital Transformation Growth Defies Market Volatility

The forward-looking CEO's commitment to ongoing investment in Information Technology (IT) is persistent. Worldwide IT spending is forecast to total $4.4 trillion in 2022 -- that's an increase of 4 percent from 2021, according to the latest worldwide market study by Gartner, Inc.   "This year is proving to be one of the noisiest years on record for CIOs," said John-David Lovelock, vice president at Gartner . Regardless, digital transformation remains a high priority across the globe. Geopolitical disruption, inflation, currency fluctuations, and supply chain challenges are among the many market volatility factors vying for attention, yet contrary to what Gartner saw at the start of 2020, enterprise CIOs are accelerating IT investments in 2022. Digital Transformation Market Development As a result, purchasing and investing preferences will be focused on areas including data analytics, cloud computing, seamless customer experiences, and IT security. Inflation impacts on

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut