AI Photo: VCG

China has made remarkable strides in digital infrastructure and technological innovation during the 14th Five-Year Plan period (2021-25) with its total computing power ranking second worldwide and technology breakthroughs in key digital sectors, Liu Liehong, head of the National Data Administration (NDA), told a press conference on Thursday.

In terms of digital infrastructure, by the end of June, the country had 4.55 million 5G base stations and 226 million gigabit broadband users, with its total computing power ranking second worldwide. These advancements have strongly driven economic and social development, Liu said.

Liu said that while the industry used to talk about the "lack of core chips and key operating systems" as a vivid description of China's insufficient self-reliance in high-end chips, operating systems and other key areas, now after years of efforts, a number of key core technologies in the digital field have been broken through, demonstrating China's remarkable innovative ability.

Technological breakthroughs shine in key digital sectors. The integrated circuit industry has formed a complete industrial chain covering design, manufacturing, packaging, testing, equipment and materials. Domestic operating systems are thriving, with China's self-developed HarmonyOS powering over 1.19 billion devices across over 1,200 product categories like smartphones, cars and home appliances. China's overall AI strength has seen systemic growth, holding 60 percent of global AI patents, according to the NDA.

At the beginning of 2024, China's daily token consumption stood at 100 billion. By the end of June, the daily token consumption had exceeded 30 trillion. A more than 300-fold increase in just one and a half years vividly reflects the rapid expansion of the scale of AI applications in China, according to the NDA.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday that technological breakthroughs have significantly enhanced the competitiveness of China's digital industry, laying a solid technical foundation for the development of the digital economy and enabling China to be competitive globally. 

By addressing long-standing bottlenecks in key areas such as high-end chips and operating systems, China has built a more independent and resilient digital technology ecosystem. This not only strengthens China's ability to withstand external risks but also provides strong technical support for the innovation and upgrading of the entire digital industry chain, Wang said.

A new growth driver

The digital economy also emerged as a new growth driver for the economy with growing development momentum, according to the NDA.

By the end of 2024, China's software revenue had grown by 80 percent compared with 2020, while the added value of above-scale electronic information manufacturing had increased by over 70 percent. 

Meanwhile, intelligent transformation and digital upgrading are advancing swiftly. More than 10,000 smart factories have been established, covering over 80 percent of major manufacturing industry categories. Smart home appliances and smart wearables have emerged as new consumption trends. Digital economy growth has also created over 100 new occupations, generating fresh employment opportunities.

In 2024, the number of data enterprises in China exceeded 400,000, and the scale of the data industry reached 5.86 trillion yuan ($817.24 billion), an increase of 117 percent compared with the end of the 13th Five-Year Plan period (2016-20).

Data resources are driving high-quality development across industries by enabling smarter, more efficient solutions. Over 70 demonstration scenarios have been launched, spanning smart agriculture, healthcare and logistics, according to NDA.

The digital economy is the pivotal driving force for China's high-quality economic development. By leading the digital and intelligent transformation of traditional industries, it optimizes industrial structures, fosters emerging sectors, and upgrades consumption patterns, ultimately creating a synergistic ecosystem where traditional and new industries co-evolve with enhanced innovation capacity and sustainability, Wang said.

China's well-developed industrial base provides a strong foundation for digital applications, enabling significant progress in the digital economy. Chinese firms now play leading roles across multiple digital sectors. As most industries have adopted digital transformation to some degree, the digital economy has become integral to industrial operations - improving overall socio-economic efficiency, Hu Qimu, a deputy secretary-general of the Forum 50 for Digital-Real Economies Integration, told the Global Times on Thursday.

Looking ahead, the NDA plans to build data hubs in key areas such as embodied intelligence, low-altitude economy and bio-manufacturing through systematic layout of high-quality datasets. It will also promote value co-creation of data elements and foster a market where companies are willing to pay for quality data.

This year, over 10 systems including data property rights will be introduced, following several policies on public data development and utilization released last year. Efforts are also underway to build demonstration scenarios for public data circulation, driving the full release of data element value as China speeds up the development of a national integrated data market, according to the NDA.


Fostering cooperation 

As China progresses in its data industry layout, it is engaging in international cooperation on the digital economy, deepening collaboration and expanding practical partnerships.

China has launched initiatives on critical issues such as data security, international digital economy cooperation, and cross-border data flow on global platforms like the G20, APEC, and the Belt and Road Initiative (BRI) with the focus on bridging the digital divide and sharing innovation dividends. Such proposals have gained support from countries worldwide, steadily enlarging China's "circle of friends" according to the NDA.

Since the establishment of the NDA, China has signed 26 Memorandums of Understanding (MoUs) on digital economy cooperation with various nations, while the number of Silk Road e-commerce partner countries has grown to 33. The consensus on win-win cooperation is being widely recognized by more and more countries, according to the NDA.

Moving forward, China will strengthen coordination and leverage the synergy between central and local governments, as well as industry-academia-research partnerships, to jointly shape a thriving future for the global digital economy with international partners, the NDA said.

From a global governance perspective, China has emerged as a key player in international digital governance through its institutional innovations, technological contributions, and collaborative practices in the digital realm, Wang said.

Its domestic policy experiences offer valuable insights for shaping fair global digital rules, while core tech breakthroughs provide models for global digital advancement. By advocating inclusive cooperation and expanding international partnerships, China drives connectivity and shared growth in the global digital economy, standing as a major contributor in this evolving landscape, Wang added.

Against the backdrop of a widening global digital divide - fueled by tech blockades, decoupling trends, and the growing gap between developed and developing nations - China plays a pivotal bridging role, Hu said.

China champions win-win cooperation, actively sharing expertise and infrastructure with BRI partner countries and trading partners. By helping these countries enhance digital transformation capabilities, boost industrial digitization, and participate more fully in the global digital economy, China is working to narrow the divide and foster shared progress in the digital economy, Hu added.