China is one of the most popular names when it comes to internet freedom and censorship issues. The country is infamously known for ‘the great firewall of China’ which blocks many popular websites such as Google and Facebook. However, China is also known for the growth of it’s digital economy over the years. The country has many big players which have now become global. China’s digital economy is expected to reach a figure of 5.8 Trillion USD by 2020.
This statement comes from Chinese President Xi Jinping, who stated this during the 4th World Internet Conference in Wuzhen. The primary theme of the conference was of ‘developing digital economy’. The Chinese president’s remarks come at a time when China’s Digital Economy is worth $3.3 Trillion (22.6 Trillion Yuan).
The $5.8 Trillion figure might not be too far-fetched as a number of Venture Capital firms are now investing in the country. China’s digital growth, which is being progressed further by startups, is primarily being led by the giants – Alibaba, Tencent and Baidu. $5.8 Trillion would mean 32 Trillion Yuan – a jump of 10 Trillion Yuan in about two years’ time.
China’s success in the world of e-commerce has stunned the world. The e-commerce giants in the country have been making record-breaking sales year after year. Alibaba in particular has been the apex name in this e-commerce revolution. Alibaba’s Single’s Day sales on the 11th of November every year see purchases worth Billions of dollars taking place in just one day.
Consumption-related mobile payments in China amounted to 790 billion US dollars in 2016, which is 11 times of that in the United States. On Singles’ Day 2017, shoppers spent 254 billion yuan or 38.2 billion US dollars in online shopping! By 2020, China’s digital economy will be 35% of their total GDP and by 2030, it would be over 50%! With such massive figures on the horizon, Xi Jinping’s vision of attaining $5.8 Trillion in a digital economy does look quite practical.