China’s Digital Economy: Opportunities and RisksChina’s digital economy has expanded rapidly in recent years. While average digitalization of the economy remains lower than in advanced economies, digitalization is already high in certain regions and sectors, in particular e-commerce and fintech, and costal regions. Such transformation has boosted productivity growth, with varying impact on employment across sectors. Going forward, digitalization will continue to reshape the Chinese economy by improving efficiency, softening though not reversing, the downward trend of potential growth as the economy matures. The government should play a vital role in maximizing the benefits of digitalization while minimizing related risks, such as potential labor disruption, privacy infringement, emerging oligopolies, and financial risks. |
Contents
| 3 | |
| 4 | |
IV Evolution of the Digital Economy in China | 7 |
V The Real Impact of Digitalization | 8 |
VI Fintech and Implication on Financial Stability | 12 |
VII Prospects | 16 |
VIII Conclusions and Policy Recommendations | 18 |
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China’s Digital Economy: Opportunities and Risks Ms.Longmei Zhang,Ms.Sally Chen Limited preview - 2019 |
Common terms and phrases
accounts active adoption Alibaba Alipay application average Bank broad capital China China Academy Chinese close Communication Technology companies compared consumer continue contribution countries created definition digital economy disruption dominate e-commerce early ecosystem emerging employment example financial services financial stability fintech fintech development framework funds global growth higher impact impact of digitalization improved increase increasingly indices industries Information and Communication integration investment January labor labor market lead lending limited loans lower Mckinsey measures million mobile payments Model needed Number operations overall particularly past percent of GDP platforms population potential productivity providers rapid recent Reflecting regions Regression regulators regulatory Report requirements result rising risks robotics service providers share Sources South Korea speed standards structure supply Tencent third-party payments traditional sectors transactions trend users workers World Bank