The aim of this paper is to unlock the potential of modern Chinese public libraries as an important factor in developing the knowledge-and information-based economy.Research methodology. The author uses the analysis of statistics on the activities of public libraries in China, the content analysis of their websites, the comparative analysis of innovative products and services that are in demand. The systematic approach to studying the activities of the network of public libraries of the People’s Republic of China made it possible to determine the specific functions of national and regional libraries, to determine the status of their corporate cooperation in improving the quality of meeting the information needs of users.Results. The author reveals the main provisions of the Law on Public Libraries of China (2018) — the first legislative act in the country that regulates all aspects of the activities of the largest type of libraries. The author describes the tasks and functions of public libraries in China as a basic socio-communication institute, which performs information, educational, socio-cultural, socializing, recreational functions, has a powerful potential for enhancing the intellectual level of society, the development of creativity of the general public, in particular children and youth. The author indicates the role of government funding for the modernization of Chinese libraries by the government, creating comfortable conditions for an access for all categories of users to the world’s information resources. The paper highlights the importance of the active development of innovative online and mobile services by public libraries, virtual reality services aimed at implementing youth creative ideas and skills, aspirations for innovative experiments, the acquisition of practical skills of working with high-tech equipment based on the structure of libraries of creative space «i-Space».Novelty. It is shown that in the context of developing the digital economy and knowledge-and information-based society, the priority in public libraries of China is to create the conditions for creative ideas and abilities for young people, aspirations for innovative experiments, and the acquisition of practical skills of working with high-tech equipment (robotized technology, 3D printers, 3D scanners, laser cutters, digital music and video recording studios, virtual reality glasses and helmets, etc.).The practical significance. The experience of Chinese public libraries is worth studying and being implemented in the libraries of those countries that have adopted the government programs to develop the digital society and knowledge-and information-based economy. This experience shows that the diversification of high-tech library services allows them to create “idea incubators” and creative workshops, informal leisure and educational centres for local communities that promote the self-development and realization of creative abilities of young people, form their desire for technical creativity and innovative experiments as a basis for developing the intellectual capital of the country and a key for developing the knowledge-and information-based economy.
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