[Photo/VCG]
Thanks to its rapid economic development and technological advances over the past few decades, China now has one of the largest and most advanced digital economies in the world. China’s digital economy is now worth $7.1 trillion, second only to the United States, according to a white paper released by the China Academy of Information and Communications Technology (CAICT). The country also has many digital economy giants, including Baidu, Alibaba, and Tencent, supporting China’s digital economy ecosystem.
After the COVID-19 pandemic, with its myriad public health considerations, China’s online economy development has also accelerated in many industries including education, healthcare, telecommunications and those serving daily necessities. Given the robust and rapid growth of the digital economy, it is important to better understand the drivers of its success and to anticipate future challenges.
In recent years, the Chinese government has strongly promoted the development of the digital economy to support its value-added and innovative economic transformation. Many cutting-edge and emerging technologies such as big data, artificial intelligence, fintech and 5G are now supporting the digital economy. In addition, many favorable long-term and strategic policies and initiatives to support digital transformation have been put in place, such as: B. the government’s Internet+ Plan project and new infrastructure. All of this outlines China’s vision and goals to chart its digital path for economic development. Meanwhile, these efforts also strengthen the use of digital platforms and tools to support the growth of China’s economy.
The emergence of the young population also promotes the development of China’s digital economy. Compared to previous generations, today many younger people come from the middle class, which gives them the money and opportunities to pursue the purchase of various goods in the online market. The lower threshold required to start activities in the digital field also encourages many of these risk-taking and innovative young people to start their online business and expand their related activities. Some are entering the digital economy to make a quick buck, while others are exploring it as an alternative career path. As a result, online technologies are now becoming more advanced and commercialized under such strong demand and supply.
Nonetheless, the emergence of the digital economy and its collection of consumers’ personal data has raised ongoing questions about how to balance the growing demand and development of technology-driven services with the need to ensure public safety. From time to time, there are reports of how online consumers’ personal information has been leaked to various online platforms, thereby invading their privacy and interests. Relevant crimes have also developed that revolve around the breach of private information, especially when companies use this data to develop virtual identities of consumers. It seems that consumers’ individual rights and interests cannot remain in jeopardy as the digital economy becomes more widespread and developed.
In view of this situation, the Chinese government may further strengthen the supervision and monitoring of online platforms regarding the collection, retention, use, processing, sharing, transfer and public disclosure of personal information. There should also be more explicit, clear, detailed and transparent rules and regulations governing the behavior and interactions of sellers and consumers in the online marketplace. At the same time, an independent commission could be set up to subject itself to strict compliance checks on the use and storage of personal data by companies. In addition, Chinese companies and investors can hire the professional services of cybersecurity-related institutions to strengthen the security measures of their information systems, or employ technical means to ensure the anonymity and anonymization of their users in order to enhance personal data protection and prevent information leakage impede. damage or loss.
Another common problem is that some Chinese investors who have stronger economic power may have more privileges and potential to establish and expand their businesses, bringing them higher economic returns compared to other small and medium-sized enterprises. Chinese investors with more financial resources and capital are finding it easier to participate in China’s online digital economy system. Faced with fierce competition in the market, these companies are able to develop more technology and expand their business scope to improve their service quality and increase their market size. Therefore, unfair competition may arise in the online market over time.
It is therefore crucial to ensure more diverse and equal business opportunities for companies, especially for small and medium-sized enterprises. In addition, more supportive measures need to be taken to create a favorable environment to fill financial gaps and face the challenges. For example, a broader range of start-up funds can be more helpful for small and medium-sized companies when it comes to raising capital, establishing themselves and developing their brand.
The digital arena has become a strategic economic battleground around the world. As different countries evolve their digital economies, they should find ways to strike an optimal balance between maximizing opportunities and minimizing the challenges ahead. Through the concerted effort of various stakeholders in China, the development of the country’s digital economy is expected to become more systematic, robust and sustainable in the long term.
Mathew Wong is an Assistant Professor in the Department of Social Sciences at the Education University of Hong Kong.
Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.
If you would like to contribute, please contact us at [email protected]
Comments are closed.