Online economy spurs growth
Consumer habits, businesses altered by digitization
Amid a confluence of factors behind China’s economic recovery from the COVID-19 pandemic, including robust anti-virus measures and the resilience of the country’s economy, the rise of China’s digital economy could be one of the biggest stabilizers for life and the economy, not just in China but globally, industry executives said on Monday at a major services trade event in Beijing.
From online shopping to online classes and entertainment, China’s prowess in the digital world – an evergrowing and massive infrastructure – was maximized to generate new growth through new business models amid the pandemic.
These new developments have been frequently highlighted at the ongoing China International Fair for Trade in Services (CIFTIS) in Beijing, where officials, experts and business leaders called for the further acceleration of the economy’s digitization to spur new growth.
In a reflection of how life and business have been changed by the epidemic, Zhang Yi, vice president of Dingdong Maicai, a Shanghai-based online grocery vendor, said that their daily vegetable supply hit 1,000 tons, and daily supply of fresh meat and eggs reached 200 tons amid the epidemic.
In Shanghai, the online vendor ensured local supplies of 400 tons of fresh vegetables and 30 tons of pork a day in February and March. What’s more inspiring, many middle-aged and elderly customers, the main patrons of wet markets, have embraced a makeover of their buying habits, Zhang said.
A resource matching platform initiated by domestic and overseas ecommerce associations was officially up and running during the forum, aiming to maximize the nation’s ecommerce success.
China has been a global leader in e-commerce, as consumers and businesses relied more on online shopping. Between January and July, online retail sales in China grew 9 percent from the previous year to 6.08 trillion yuan ($889.89 billion).
But online shopping is only a part of the digital economy, which revolves around the digitalization of manufacturing, marketing and settlement, which means way beyond online purchases, said Li Junbao, co-founder and president of Beijing Wangku Information Technology, anticipating digital economy to become a growth engine.
The digital economy comprises of internet firms and the digitization of traditional industries. An inward-looking dual circulation model of economic growth is set to spur the digital economy, as a considerable investment would be required to digitize traditional sectors, said Zhang Liqing, chief economist of PwC China.
Since 2012, China’s digital economy has grown from 11 trillion yuan to 35.8 trillion yuan, accounting for 36.2 percent of China’s total GDP, said Xiao Yaqing, minister for industry and information technology. More than just its size, China is also moving rapidly in its digitization process, with a world-leading internet sector and biggest internet population.