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

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI  (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – t