Digital use to transform China economy

Updated 2017-12-05 11:01:57 Shanghai Daily

The increasing adoption of digitalization in China could lead to a dramatic transformation of the Chinese economy, according to a latest report by McKinsey Global Institute.

Creative destruction would sweep across almost all economic sectors and enhance efficiency as well as boosting productivity, which would eventually boost the global competitiveness of Chinese companies, it said in the "Digital China" report released yesterday.

"The creative destruction brought by digital technologies is likely to be more rapid and on a relatively larger scale in China because of inefficiencies in traditional sectors and massive potential for commercialization. Digitization can make China's economy more dynamic, and enable more Chinese businesses to compete globally and even export "Made In China" digital business models," said McKinsey Global Institute senior fellow Jeongmin Seong.

The report identifies three factors that are ripe for China's digitalization process: a large and young Chinese market suitable for rapid commercialization of digital business models; a rich digital ecosystem; and the government allowing space for digital companies to experiment.

China's digitalization pattern follows that in other countries. In China, the United States, and the European Union, the information and communications technology, media, and finance sectors are the most digitized. Agriculture, local services, and construction tend to be the least digitized in all three regions.

But China's digital journey also differentiates the country from its western counterparts, the report said. In China the digitalization process of consumer-focused industries such as retail and entertainment is ahead of other sectors than they are in either the EU or the US.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 24 2018 00:55:23

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 24 2018 00:55:23

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 24 2018 00:55:23

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords