Chinese Digital Economy: Current Situations, Problems, and Recommendations

Abstract

The rapid development of the digital economy is transforming global business models and social interactions. By 2025, global e-commerce transactions are anticipated to reach $6.86 trillion, underlining the importance of the digital economy as a major force for economic expansion. China's digital economy, having reached RMB 50.2 trillion in 2023 and comprising 41.5% of its GDP, is notably advancing, catalyzing the transformation of traditional industries and fostering new business models. Significant investments in digital infrastructure such as 5G, big data centers, AI, and the industrial internet underscore China's commitment to technological innovation. Despite these advancements, challenges remain, including talent shortages, data security, and privacy concerns, as well as the digital divide. Addressing these issues involves enhancing digital talent training and introduction, improving data security regulations, and promoting coordinated regional development. This study is of great practical value in guiding policy formulation, optimizing resource allocation, and promoting the inclusive application of digital technologies, which will help promote the healthy and rapid development of China's digital economy, ensure that all levels of society can benefit from the advancement of the digital economy, and achieve comprehensive economic and social transformation and upgrading.