The impact of the digital economy on China's economic development

This paper explores the impact of the digital economy on China’s economic growth through three phases: the initial phase (1994-2002), rapid growth (2003-2012), and maturity (2013-present). It emphasizes the digital economy’s significant role in increasing China’s GDP, bolstering foreign trade, and enhancing global competitiveness. Key developments include the establishment of major internet companies, the swift rise of e-commerce, and widespread digital transformation across industries. Using a case study approach, the analysis draws on data from the National Bureau of Statistics and industry reports, outlining how the digital economy has been instrumental in driving economic growth and transforming industries. However, the study also identifies considerable regional disparities and challenges in digital transformation, particularly among small and medium enterprises (SMEs), which face high digitalization costs and limited resources. These findings have implications for policymakers, industry leaders, and researchers, offering insights into how digital investment and innovation can support sustainable growth and bridge economic divides across regions and sectors. This paper underlines the strategic importance of targeted investment in digital infrastructure and core technologies as essential drivers for China’s economic resilience and long-term competitiveness on a global scale, thereby illustrating the vital role of the digital economy in modernizing the national economy and positioning China at the forefront of digital transformation.