Megatrends to Look Out for-China's Rising Digital Economy

CIO Review APAC | Tuesday, November 02, 2021

Any technological innovation that emerges in China will influence global economies.

FREMONT, CA: Before China opened to foreign trades and investment and free-market reforms in 1976, the country maintained policies that forced its economy to be very poor, stagnant, and relatively isolated from the rest of the world. But in the past few decades, China has become one of the world's fastest-growing economies, within average GDP growth of 9.5%. The driving force behind such growth is not just the countries immense population but the innovative products and services that Chinese companies have brought to the market for years. China is at the forefront of innovation in omni-channel retail, health tech, fintech, social media, and on-demand services. The country is also rapidly developing contemporary technologies that are helping it execute its digitalization strategies. Here, we will take a closer look at the megatrends that influence the future of digital innovation in China.

1. Supply chain digitalization and industrial IoT: Digital innovation is transforming several industries around the globe, and consumer retail is one of the largest beneficiaries of that. In China, the industrial internet of things (IIOT) is deployed at a large scale across several manufacturing units, alongside blockchain-based inventory management systems. The countries manufacturing industry has gracefully embraced IIOT-enabled digital manufacturing to improve and streamline their operations.

2. Retail integration: the integration of the discrete retail sector is likely to continue in the following years, where business is will integrate omnichannel retail with on-demand economy, social economy, and supply chain. Consequently, this will generate a massive and seamlessly integrated retail landscape that consumers will enjoy. China’s social commerce domain will also continue to flourish, while the requirement of convenience and efficiency will reduce the space between on-demand and traditional e-commerce.

3. Automotive Revolution: China houses one of the world's most developed and shared mobility networks, which is increasingly powered by the availability of electric and smart vehicles. The country also is at the forefront of the development of autonomous driving fleets. The growing consumer demand in China has been driving innovation in its automotive arena, encouraging corporate leaders to ditch their traditional business models and networks and redefine their consumer experience and business processes.

4. Digital Urbanization: China is home to more than half of the world's smart cities. The country is leading the development and innovation of 5G Technology, which is utilized for or domains such as security and traffic management in smart cities. The government is putting its people and environment first and developing smart cities by utilizing contemporary technologies such as artificial intelligence and big data. Several private sector entities are also constantly conducting environmental analysis and developing urban planning tools to help the municipal authorities solve issues such as overcrowding and lack of resources.

Considering China's influence in the global economy, any technological or Digital innovation that emerges in the country will not only shape its own digital ecosystem but significantly impact global economies. Considering that China maintains its momentum, one could say that China is on route to becoming one of the world’s most advanced and prosperous economies.

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