The digital economy is becoming a new engine of growth for China and other G20 members

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BEIJING, November 15, 2022 /PRNewswire/ — Three years into the COVID pandemic, the global economy, while facing growing uncertainties and challenges, has undergone profound change, with the acceleration of digital evolution and the emergence of the digital economy as a new driver of economic recovery and growth.

The digital economy refers to a wide range of economic activities that include the use of digitized information and knowledge as a key factor of production, modern information networks as an important activity space and the efficient use information and communication technology (ICT) as an important driver. productivity growth and structural optimization of the economy, according to the G20 initiative for development and cooperation in the digital economy agreed at the 2016 G20 Hangzhou Mountain peak.

In 2021, the added value of the digital economy of 47 major countries in the world reached $38.1 trillionup 15.6% from a year earlier, accounting for 45% of their combined GDP, according to a white paper published by the Chinese Academy of Information and Communications Technology (CAICT) in July 2022.

Among them, the G20 members, which account for more than 85% of global GDP, 75% of international trade and 60% of the world’s population, are leading the world in developing the digital economy.

The United States, with a digital economy worth $15.3 trillionranked first in the world. China came in second with its digital economy reaching $7.1 trillion. The European Union took third place with a value of $6.3 trillion.

In terms of share of digital economy in GDP, Germany, Britain and the United States ranked in the top three, all exceeding 65%.

G20 Consensus on the Digital Economy

At the 2016 G20 summit held in Hangzhou, China, as a rotating presidency, for the first time included the digital economy as an important topic of the summit. The country also led the formulation and publication of the G20 Digital Economy Cooperation and Development Initiative, which was the first digital economy policy document endorsed by G20 leaders.

The document proposes seven guiding principles for the development of the digital economy, namely innovation, partnership, synergy, flexibility, inclusion, open and conducive business environment, flow of information for growth economy, trust and security.

It also identified six key areas of cooperation in the digital economy, including expanding broadband access and improving quality; promote investment in the ICT sector; supporting entrepreneurship and promoting digital transformation; encourage cooperation in e-commerce; strengthen digital inclusion and promote the development of small and medium-sized enterprises.

China booming digital economy

China the digital economy has reached $7.1 trillion in 2021, representing 39.8% of the country’s GDP, according to a white paper published by CAICT.

From 2012 to 2021, the average growth rate of China the digital economy was 15.9% and the share of the digital economy in its GDP increased from 21.6% to 39.8%, according to the white paper.

The role of the digital economy as a stabilizer and accelerator of China the global economy has become more important, according to the white paper.

From June 2022, China had 1.05 billion Internet users, forming the largest and most dynamic digital society in the world.

The country has also built the largest 5G networks in the world, with 1.97 million 5G base stations at the end of July.

Whereas China The digital economy is booming and becoming an increasingly important growth engine for its economic development, the country also provides more opportunities for international companies to expand into the Chinese market and is experiencing active cooperation with members. of the G20 in the field.

In June, the German company Siemens set up its first Smart Infrastructure Digitalization Enablement Center in Chinaexploring collaboration with national companies in the field of smart infrastructure.

US tech giant IBM, with its cloud-based services, is actively cooperating with Chinese companies in their digital transformation.

China also works with Brazil in the protection of the ecosystem of the Amazon rainforest through digital technologies.

https://news.cgtn.com/news/2022-11-14/Digital-economy-turns-new-growth-engine-for-China-other-G20-members–1eWXYmrvcXe/index.html

SOURCECGTN

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