The Chinese Digital Economy

Foreword by Guo Kaitian: Technology Neutrality and Social Welfare
Foreword by Yin Libo: Digital Economy Leads China’s Economic Transition
Preface
Contents
List of Figures
Part I Theories: Digital Economy, a New Form of Economy and a New Driver for Growth
1 Connotation and Characteristics of the Digital Economy
	What Is the Digital Economy
	The History of the Digital Economy
	Characteristics of the Digital Economy
		Data Has Become a Key Factor of Production Driving the Economic Growth
		Digital Infrastructure Has Become a New Type of Infrastructure
		Digital Literacy Has Become a New Requirement for Workers and Consumers
		The Boundary Between Supply and Demand Has Become Less and Less Clear
	Increasing Fusion of the Human Society, the Cyberspace, and the Physical World
	Advancements in Information Technologies Constantly Drive the Development of the Digital Economy
2 Digital Economy as a New Driver for Growth
	The Digital Economy as a Major Source of Power for Economic Growth Boosts the Quality of Economic Growth
	China’s Digital Economy Catches Up from Behind
	Digital Flow as a Main Feature of Globalization in the Twenty-First Century
	Digital Enterprises Typified by Internet Companies Are on the Rise
	The Digital Economy Boosts the Quality of Economic Growth
		Facilitating the Transformation and Upgrading of the Real Economy
		Promoting Entrepreneurship and Innovation
		Promoting Green Development
	The Digital Economy as Vital Support for Promoting Supply-Side Structural Reform
	The Digital Economy Creates Jobs and Improves People’s Well-Being
		Creating Jobs
		Improving People’s Well-Being
Part II Basics: Improving Digital Infrastructure to Facilitate Economic Prosperity
3 Accelerate the Construction of Digitalized Infrastructure
	Continuously Improving Information Infrastructure
		Strengthening the Construction of Broadband Infrastructure
	Accelerating the Development of the 5G Network
	Bridging the Digital Divide
	Digitalizing Traditional Infrastructure Brings Huge Value
	Improving the Quality and Efficiency of Infrastructure as a Service
	Monitoring the Condition of Infrastructure in Real Time to Enhance Safety
	Giving Full Play to the Market Mechanism to Balance Supply and Demand
	Significant Comprehensive Economic and Social Benefits
	Digitalization of Railway Infrastructure
	Railway Transmission Network
	Railway Data Network
	Digitalization of Highway Infrastructure
	National Expressway Information Communication System Networking Project
	IT-Based Basic Information Communication Network for Transportation
	Digitalization of Water Transportation Infrastructure
	Data Center for the Water Transportation Industry
	Public Information Service Platform for the Water Transportation Industry
	Smart Water Transportation
	Digitalization of Electric Power Infrastructure
4 Make Efforts to Improve the Digital Literacy
	Digital Literacy Is a Primary Skill in the Twenty-First Century
	Focuses of Cultivating Digital Literacy
		Improving the Quality of the Labor Force
		Bridging the Digital Divide Between Users
		Cleansing the Cyberspace
		Reforming the Education System to Improve Digital Literacy
5 Boost the Internet and Information Technology Industry to Develop Vigorously
	A General Picture of the Current Development of the Internet
		Netizens: Penetrating Nearly Half of the Global Population
		Terminals: The Internet Has Moved on to the Post-mobile Era
	The Market Is Reaping Benefits at the 10th Anniversary of Cloud Computing
	Industrial Giants Such as Amazon and Google Are Leading the Development of Cloud Computing in the World
	Companies in the Second Echelon Are Stepping Up Investment and Acquisition Efforts
	Alibaba and Tencent Are Leaders in China
	Technology Companies Are Embracing Cloud Computing
	Summary
	Artificial Intelligence Ushers in a Golden Age at Its 60th Anniversary
	Various Countries in the World Are Announcing Artificial Intelligence Strategies One After Another
	Artificial Intelligence Is Becoming a Strategic Pivot for Technology Giants
	Fierce Competitions for Top Talents
	Rapid Growth of Investment in Entrepreneurship and Innovation
	Emergence of Typical Industry Applications
		Voice Assistants: Amazon’s Alexa Has Become a Superstar
		Media: Personalized Recommendations and Writing Bots Are the Highlights
		Autonomous Driving: Technology Companies and Automobile Manufacturers Are Jumping on the Bandwagon
	Artificial Intelligence Would Have a Structural Impact on Employment
	Is Artificial Intelligence Going to Pose a Threat to the Existence of Human Beings?
	The Blockchain: Building Trust to Facilitate the Global Flow of Value
	Various Countries in the World Are Putting a Strong Emphasis on the Development of Blockchain
	Emergence of Typical Industry Applications
		Cross-Border Payment: Ripple
		Issuance of Securities: Nasdaq Linq
		Logistics Tracking: Everledger
		Security Hazards of Blockchain
Part III Industries: Unleashing Digital Dividends to Promote Transformation and Upgrading
6 Vigorously Promoting Digital Transformation in Manufacturing
	The Manufacturing Industry Is the Main Battlefield of the Digital Economy
	The Manufacturing Industry Is the Mainstay of China’s National Economy
	China Has a Big Manufacturing Industry Which Ranks the First in the World
	The Manufacturing Industry Has Created More Jobs Than Any Other Industry
	The Manufacturing Industry Is the Principal Source of Wealth Creation in Society
	Developed Countries Are Actively Seizing High Grounds in a New Round of Competition in Manufacturing
	There Is Huge Value in the Integration of the Internet into Manufacturing
	Accelerating the Promotion of Digital Transformation in the Manufacturing Industry Is a Requirement of National Strategies
	The Internet Facilitates the Digital Transformation of the Manufacturing Industry
	The Internet Is Increasingly Becoming a New Driver for the Transformation and Upgrading of the Manufacturing Industry
	The Internet Opens New Space for the Development of the Manufacturing Industry
	The Internet Spurs New Models and Business Formats in the Manufacturing Industry
	The Internet Reshapes New Advantages in International Competition
	Global Industrial Giants Are Leading the Development Towards Digitalization
	Predix: Building an Operating System in the Industrial Sector
	Industrial Leaders Are Rushing to Seize High Grounds in Cloud Platforms
	Successful Cases of “Internet Plus” Manufacturing Are Springing Up in China
	Apparel: Redcollar Offers “Internet Plus” Mass Customization
	Establishing a C2M Factory Direct Selling Platform
	Producing Personalized Products with the Means and Efficiency of Industrial Production
	Data-Driven Smart Production
	Demand-Centered Restructuring of the Organization
	Exporting Capabilities: SDE Aids Traditional Enterprises in Their Transformation and Upgrading
	Value and Benefits
	Steel: Baosteel Builds an Ecosphere in the Whole Steel Industry Chain
	Basic Information About Ouyeel
	Main Practices and Characteristics of Ouyeel
	Successful Development of Ouyeel
	Problems and Prospects
	Automobile: CCAG Builds a Global Collaborative R&D System with Independent Innovation
	Main Practices
	Outcome of Development
	Future Prospects
	Household Appliance: Haier Leads a Revolution of the Times with All-Round Internet-Based Transformation
	New Requirements of the Times: Fully Implementing the Networking Strategy
	New Management Model: Fully Stimulating the Vitality of the Enterprise
	New R&D System: Building the Largest Open Innovation System in the World
	New Manufacturing System: Mass Customization Centering on Personalized Needs of Customers
	New Service System: Constructing a New Ecosphere for Product Promotion, Marketing, and Financial Services
	New Entrepreneurship System: Transforming from “Manufacturing Products” to “Incubating Makers”
	Outcome of Development
	Achievements and Challenges of the Digital Transformation of China’s Manufacturing Industry
		Preliminary Achievements of the Digital Transformation of the Manufacturing Industry
	Challenges Faced by the Digital Transformation of the Manufacturing Industry
	Heavy Reliance on Other Countries for Key Technologies
	Lack of Inter-Disciplinary Talents
	Insufficient Conditions for Popularizing Industrial Applications
7 Vigorously Promoting the Digital Transformation of the Real Economy
	Digital Agriculture
	Development of Digital Agriculture in China
		The Application of Such Equipment as Smart Agriculture Devices and Unmanned Remote Sensing Aerial Vehicles Has Realized Smart Monitoring, Smart Spraying, Smart Fertilization, and Smart Surveying in Agriculture
	Standardized Tracing of Agricultural Product Quality and Safety
	Rural e-commerce is Spreading like Wildfire
	Case Study: The “Running Chicken” Project of JD.com
	Great Demand for Rural Finance
	Trends in the Development of Digital Agriculture
		From Individual Digital Agriculture Technologies to Digital Integration and High Degree of Atomization
		From Scattered Information Resources to Sharing and Collaboration of Agricultural Data Resources
		From the Monotonous Agricultural Service Mode to Customized Services of Digital Agriculture
	Online Retail
		China’s Online Retail Started Late but Developed Quickly
		The Internet Facilitates Quality and Efficiency in the Development of the Distribution System
		Online Retail Has Lower Operating Costs
		Online Retail Has Higher Operating Efficiency
		Online Retail Has Advantages Unmatched by Offline Brick-and-Mortar Stores
		The Existence of a Large Number of Natural Person Online Stores is a Unique Phenomenon in China
		New Direction for the Development of Online Retail
		O2O Promotes the In-Depth Integration of Online and Offline Retail, Facilitating the Transformation and Upgrading of the Distribution System
	Fresh Produce Has Become a Prioritized Category for Development
	Rural e-Commerce Aids Targeted Poverty Alleviation
	Social Commerce Such as WeChat Microbosses and Internet Celebrities Is Booming
	Technological Logistics is Leading the Revolution in e-commerce Logistics
8 Vigorously Promoting Digital Transformation in Public Services
	Digital Education
	Digital Technologies Drive Waves of Development in Digital Education
	Artificial Intelligence + Education: Opening a New Model for Digital Education
	VR/AR + Education: Promoting New Changes in Digital Education
	STEAM Education: Spreading New Concepts of Digital Education
	Various Countries Are Placing Great Emphasis on the Development of Digital Education
	Digital Technologies Help with the Rapid Development of Education in China
	The Government Encourages the Development of Digital Education
	Digital Education Is Exploring Rational Development Models
	Significant Growth of Mobile Digital Education
	Live Streaming for Education Is Gaining Impetus
	The Path for the Future Development of Digital Education in China
	Fostering a Healthy, Dynamic Atmosphere for Innovations in the Market
	Expanding the Coverage of Digital Education Resources
	Promoting the Integration of Online and Offline Education
	Digital Healthcare
	Six Major Trends in Digital Healthcare Globally
		Taking Improving the Workflow as the Foundation
		Taking Open Healthcare Data as the Means
		Taking the Medical Value-Oriented Approach as the Guidance
		Taking Digital Platforms as the Focus
		Taking the Multi-site Practice of Doctors as a Breakthrough
		Taking the Security of Personal Information as a Safeguard
	New Directions for the Development of Innovation in China’s Digital Healthcare
		Encouraging Innovation in the Application of Information Technology and the Cultivation of New Business Formats
		Establishing a Sound Hierarchical Diagnosis and Treatment System
		Improving the Standard System and Data Protection System for Digital Healthcare
	Digital Transportation
	Digital Transportation Has Become a Trend in the Development of the Transportation Industry Worldwide
	Traditional Automobile Manufacturers and Technology Enterprises Are Entering the Field of Digital Transportation from Different Directions
	Countries Are Comprehensively Planning for Smart Vehicles and Digital Transportation
	Trends in the Development of Digital Transportation Globally
		Automated Driving Based on Smart Vehicles Has Become a Rising Star
	Various Countries Are Conducting Research on Legislation for Automated Driving
	The Internet of Vehicles Has Become an Important Direction for Development
	Precise Sensing of Urban Traffic Conditions and Smart Navigation Have Become Possible
	AI as a Service Has Become a New Service Format
	Trends in the Development of Digital Transportation in China
	Ministries and Local Governments Are Actively Engaging in Pilots and Demonstrations
	Infrastructure and Technical Application and Promotion of Digital Transportation is Progressing Steadily
	Smart Connected Vehicles and Smart Driving Have Become Important Directions for the Development of Digital Transportation
	Applications of Technologies Such as Electronic Vehicle Identification and Smart Parking Have Become New Highlights of Digital Transportation
9 Vigorously Promoting Digital Transformation in Finance
	The Ecosystem of Digital Finance
	Payment
	Online Lending
	Wealth Management
	Insurance
	Retail Banking
	Digital Technologies Have Extensive Applications in the Financial Industry
	The Applications of Cloud Computing
	The Applications of Big Data
	Fast Credit
	Risk Control and Anti-fraud
	Big Data Marketing
	User Portrait
	Dynamic Pricing
	The Applications of Artificial Intelligence
	The Applications of the Internet of Things
	The Applications of Blockchain
	The Blockchain Technology Has the Potential to Improve the Collaborative Service Capabilities of Financial Institutions
	The Blockchain Technology Has the Potential to Lower the Costs of Financial Operations
	The Blockchain Technology Has the Potential to Improve the Business Audit System
	The Blockchain Technology Is Helpful to Financial Regulation and Compliance Checking
	Innovating the Regulation Models of Digital Finance
	There Is No Consensus Among Regulatory Policies Yet
	Cooperation in Regulation Lags Behind the Globalization of Digital Finance
	Regulatory Authorities Are Exploring Regulatory Models for Digital Finance
Part IV Suggestions: Actively Responding to Revolutions in the Digital Economy
10 Development of the Digital Economy: Problems and Countermeasures
	Problems in the Development of the Digital Economy
	The Digital Divide and the Quality of Data
	Cyberspace and Information Security Problems
	The Problem of Laws and Regulations Lagging Behind
	The Problem of Structural Changes in Employment
	The Problem of Applicability of Economic Theories and Organizational Management Mechanisms
	Suggestions for Promoting the Sound Development of the Digital Economy in China
	Establishing Systemic Rules and Regulations Targeted at the Effective Use of Data
	Comprehensively Improving the Security of the Digital Economy
	Gradually Improving Legislation on the Digital Economy
	Timely Implement Organizational Management Reforms
	Comprehensively Improving the Digital Literacy of All People
	Encouraging the Innovation and Development of the Digital Economy and Relevant Theoretical Research
11 How Enterprises Go About Digital Transformation
	Background of the Digital Transformation of Enterprises
	Rapid Changes in the Consumer Market
	Competition Among Digital Enterprises
	Competition Among Traditional Enterprises During the Course of Digital Transformation
	The Substance of Digital Transformation
	Digital Transformation in Corporate Strategies
	The Digital Transformation of Marketing
	Building Digital Brands
	Making Appropriate Use of Social Network Marketing
	Creativity and Online Interaction Are Key to Social Network Marketing
	Promoting Offline-Online Consistency and Facilitation
	Enhancing User Participation
	The Digital Transformation of Commodities and Production
		The Digitalization of Commodities
	The Digitalization of Production
	Digital Platform Transformation of Business Models
	Digital Platforms
	The Significance of Business Model Digital Platform Transformation
	Types of Business Models Based on Digital Platforms
	The Digital Transformation of Management
	Strengthening the Strategic Position of Digital Transformation
	Adjusting Organizational Structures
	Building Unified Digital Platforms
	Cultivating, Recruiting and Retaining Digital Talent
	New Problems Brought by Enterprise Digital Transformation
		New Issues Such as Privacy and Intellectual Property Protection
	Decisions Rely Heavily on Data
	Social Responsibility
12 How Governments Go About Digital Transformation
	The Path Towards the Digitalization of Government
	The Stages of Government Digitalization
	Electronic Government
	One-Stop Government
	Digital Government
	How Digital Government Is Achieved
		Stronger Top-Level Design
	Optimizing Government Processes
	Appointing Dedicated Institutions or Officers to Coordinate Cross-Departmental Affairs
	Integrating Public Services Through Informatization and Launching Platforms for One-Stop Services
	Successively Introducing Related Strategies
	The Digital Transformation of China’s Government
	Continued Progress in the Digitalization of Government
	Rapid Development of Government Services on Mobile Devices
	“Internet Plus Government Services” Strategy
Postscript
Bibliography