Liu Dian: At the turning point of the times, how can China lead the "new track" of the digital economy?

China News Service, Beijing, December 12 (Xinhua) -- At the turning point of the times, how can China lead the "new track" of the digital economy?

The author: Liu Dian is an associate researcher at the Institute of China Studies, Fudan University

In today's world, a new round of scientific and technological revolution and industrial transformation is developing in depth, and digital technology is profoundly changing the mode of production, lifestyle and social governance, and has become an important force leading economic and social development. On the 45th anniversary of reform and opening up, half of the history of the development of the digital economy, China has historically stood at the forefront of the world's new round of technological revolution, and in the face of the great changes in the future, opportunities and challenges coexist, we should summarize historical experience, grasp major historical opportunities, and empower China's high-quality development with the digital economy.

China's digital construction leads the future digital revolution

In the 45 years since reform and opening up, China has made a historic leap forward in the development of the digital economy, becoming one of the most dynamic and potential digital economies in the world. As of December 2022, the number of Internet users in China reached 12.10 billion, ranking first in the world, and in 67, the national online retail sales amounted to 2022.13 trillion yuan (RMB), ranking first in the world. In 79, China's digital economy accounted for 2022.41% of gross domestic product (GDP), ranking second in the world... Behind these impressive figures are China's tremendous achievements in the fields of digital technology, information technology and the Internet.

With the in-depth development of a new round of global scientific and technological revolution and industrial transformation, digital technology is profoundly changing people's mode of production, lifestyle and social governance. The digital economy has become an important force leading economic and social development, integrating emerging technologies such as cloud computing, big data, artificial intelligence, and blockchain to promote economic innovation and upgrading. In the era of global digitalization, China stands at the forefront of a new round of technological revolution in the world.

The 2022 World Digital Economy Conference and the <>th Smart City and Smart Economy Expo were held in Ningbo, Zhejiang, and many new technologies, new products, and new applications in the frontier fields of the digital economy were unveiled at the exhibition site. Photo by Wang Gang

The technological revolution leads the future development, and whoever can start a new round of technological revolution earlier will be able to better grasp the dividends of future development. In the long course of history, the first and second industrial revolutions have become important turning points in the course of world history, and innovative technologies and products, including steam engines and internal combustion engines, have greatly improved the productivity of Western society, fundamentally changed the mode of production of human society, and promoted the rapid development of social economy. It can be said that with the help of the Industrial Revolution, Western countries have achieved a leap forward in the development of productive forces, and with their unique technological advantages and economic strength, they have established a leading position in the world. The Western-led industrial and technological revolution not only made it difficult for China to catch up, but also opened a century of humiliation in China since the Opium War in 1840.

In the forties and fifties of the 20 th century, the third scientific and technological revolution, marked by the invention and application of atomic energy, electronic computers, space technology, and biological engineering, not only greatly promoted changes in the social, economic, political, and cultural fields of mankind, but also affected people's way of life and way of thinking. The Cold War between the United States and the Soviet Union, which accompanied the third scientific and technological revolution, laid the foundation for the international political landscape to this day.

Since the founding of the People's Republic of China, it has taken more than 70 years to complete the 45-year path of the developed countries in the West, bringing together the three industrial revolutions. Especially in the <> years of reform and opening up, China has experienced rapid development that has attracted the attention of the world, and has become one of the global leaders in the field of digital economy. At present, the development of China's digital economy has become an important engine for building a new development pattern and promoting the high-quality development of Chinese-style modernization.

The 2023 Digital RMB Industry Development Sub-forum of the <>th Digital China Construction Summit was held in Fuzhou. Photo by Zhang Bin

The construction of digital China has become an important engine to promote Chinese-style modernization

Since the reform and opening up, the Chinese government has established a sound governance strategy and policy system, laying a solid foundation for the development of the digital economy. This complete policy system for the development of the digital economy is China's greatest advantage compared with other economies in the world. From the initial digital informatization construction to the later development plan of digital China, China has always had a very clear strategic line.

In the 20s of the 80th century, digital technology has been widely recognized and applied internationally. In 2002, China put forward the development strategy of "integration of industrialization and industrialization", that is, to promote industrialization with informatization, to promote informatization with industrialization, and to take a new road to industrialization.

Since the 18th National Congress of the Communist Party of China, all regions and departments have thoroughly implemented the requirements for the construction and deployment of digital China, solidly promoted the construction of digital infrastructure, digital technology, digital economy, digital government and digital society, optimized the digital development environment, expanded international cooperation in the digital field, continuously cultivated new momentum, stimulated new vitality, and improved the level of digital intelligence in public services and social governance.

In April 2023, the 4G digital village live broadcast warehouse was unveiled in the digital village theme exhibition area of the 5th Digital China Construction Achievement Exhibition. Photo by Lu Ming

In 2014, on the occasion of China's 20th anniversary of full-featured access to the Internet, the Central Leading Group for Cyber Security and Informatization (later renamed the Committee) was established, and the leading system and mechanism for Internet management were further improved, and the governance of various fields of the Internet has achieved increasingly remarkable results. At the same time, in terms of the establishment of the rule of law in cyberspace, laws and regulations such as the Cybersecurity Law, the E-Commerce Law, the Data Security Law, the Personal Information Protection Law, and the Regulations on the Security Protection of Critical Information Infrastructure have been promulgated one after another, as well as departmental rules such as the Provisions on the Administration of Internet News Information Services, the Provisions on the Governance of the Online Information Content Ecosystem, and the Measures for the Review of Cybersecurity, as well as the Provisions on the Administration of Online Audio and Video Information Services, the Provisions on the Management of Internet User Public Account Information Services, and the Measures for the Security Assessment of Cloud Computing Services and other normative documents. China's network laws, regulations, and policy system has been basically formed, and the "four beams and eight pillars" have been basically constructed.

The world is entering the intersection of the industrial age and the digital age, and in the face of a new round of digital technology revolution, China is accelerating the promotion of digital industry innovation, digital technology research and development, and talent training, and building a comprehensive digital economy development governance system.

Visitors visit the 2023st China International Information and Communication Exhibition at the China National Convention Center in Beijing in June 6. Photo by Du Jianpo

In recent years, policies to promote digital construction have been continuously released. The state has issued the "Outline for the Implementation of the Strategy for Cyber Power" and the "Outline for the Development of the Digital Economy Strategy" respectively to promote the development of the digital economy at the national level. In February this year, the Central Committee of the Communist Party of China and the State Council issued the "Overall Layout Plan for the Construction of Digital China", which clarified that digital infrastructure and data resource system are the two foundations of digital China, and provided top-level design and strategic guidance for the future construction of digital China and the promotion of Chinese-style modernization in the digital era.

In the digital era, data resources have become the most critical element of the digital economy, and their status can be even higher than that of oil in the industrial age. In order to grasp the "new oil" of the future, this year's "Party and State Institution Reform Plan" decided to establish a National Data Bureau, which is responsible for coordinating and promoting the construction of data infrastructure systems, coordinating the integration, sharing, development and utilization of data resources, and coordinating the planning and construction of digital China, digital economy, and digital society. The establishment of the National Data Bureau will be an important milestone in the process of building a "digital China".

With the continuous development of the digital economy, China will continue to adhere to a clear strategic line, promote the development of the digital economy to a new level, and provide institutional guarantees for promoting high-quality development in the digital era and helping to achieve Chinese-style modernization.

In April 2023, the 4th Digital China Construction Summit will be held at the Fuzhou Strait International Convention and Exhibition Center in Fujian Province. Photo by Wang Dongming

Seize the opportunity to move towards a "new track" of the digital revolution

At present, in the face of the coming digital era, we should fully grasp the historical opportunity and promote the development of the country's digital economy to a higher level. However, opportunities and challenges coexist, and it is necessary to respond to them in a targeted manner and formulate corresponding countermeasures and solutions.

The digital revolution has opened a "new track", and AI empowerment, system integration, ecological linkage, and green sustainability will become the main features. In the future, the digital revolution will flourish in an all-round way, and the development of global civilization will enter a new stage, and China can contribute major scientific discoveries to the world. Facing the transformation of the development paradigm of world civilization in the future, it is necessary to encourage and support the "scientific outlook" for a long period of time on the basis of firm innovation and cultural self-confidence.

To this end, China needs to strengthen the research and control of emerging technologies, actively innovate, and promote green and low-carbon transformation and sustainable development. At the same time, it will share and use innovation achievements on a global scale, guide and regulate their use, and promote the global publicization of scientific and technological achievements; In addition, it is necessary to strengthen the dominant position of enterprises in scientific and technological innovation and actively participate in global innovation networks.

In April 2023, the audience visited the 4th Digital China Construction Achievement Exhibition. Photo by Wang Dongming

Today, China still faces challenges in technology research and development, especially the limitations of key technologies in some key areas. At the same time, as common prosperity is an important goal of China's digital transformation, it is necessary to address regional disparities, urban-rural disparities, and income disparities, and deal with the digital divide. In addition, promoting the deep integration of the real economy and the digital economy and generating greater economic dividends are also issues that need to be solved urgently. Finally, it is necessary to be cautious in terms of data security and related policy formulation, taking into account various factors such as environmental protection and social ethics, and using data reasonably to prevent data abuse.

Despite the challenges, China is also taking action. For example, in terms of technology research and development, China is promoting scientific and technological innovation, and some fields have achieved global leadership. In terms of data governance and policy formulation, China actively participates in and leads the innovation and reform of the global system, and enhances the institutional voice of global digital economy governance.

Overall, with the right response, it is entirely possible for China to seize the opportunity of the new round of scientific and technological revolution, promote high-quality development with the digital economy, and play a leading role in the global wave of digitalization, so as to promote the benefits of digital development to the world. (ENDS)

About the Author:

Liu Dian, associate researcher at the Institute of China Studies, Fudan University. Photo courtesy of the interviewee

Liu Dian is an associate researcher at the Institute of China Studies, Fudan University. He is also a researcher of the Key Laboratory of Industrial and Information Rule of Law Strategy and Management of the Ministry of Industry and Information Technology, and a researcher of the Research Base of Beijing Science and Technology Innovation Center. His research interests include digital economy governance, digital currency, network and data governance, and international political economy. He has published more than 10 research papers in core journals such as "China Finance", "Cultural Perspective" and "Academic Forum", and published nearly 100 review articles in dozens of authoritative print media such as "Guangming Daily", "Economic Daily", "People's Liberation Army Daily" and "Study Xi Times".