Research on the Current Situation and Impact of China's "Digital Economy"

Abstract

Over the last two decades, China, the world's second-largest economy, has flourished and boomed in its digital economy. China's digital industry is currently a world leader in the value of numerous digital applications, technologies, and integrated new ecosystems, especially the communications industry, e-commerce, automobile manufacturing, and mobile payment. It is second only to the United States. Since this rapid development has had a profound impact on various industries and even the world, the paper will analyze the phenomenon of the "digital economy" in China and its impact on the global economy by reading literature and online materials. It can be concluded that 5G technology is the foundation of China's digital economy, e-commerce and electronic payment are flourishing in the Chinese market, and the Chinese government has also carried out timely supervision. Similarly, the digital economy has also brought different impacts including development in industries, innovate in technology, and other negative impacts like monopoly, data leakage and larger gap between rich and poor.