Digital innovation to drive China’s economy

China’s focus on developing the digital economy and bolstering the application of artificial intelligence will drive industrial transformation and inject fresh impetus into the country’s tech development, according to officials, experts and business leaders.

Liu Liehong, head of the National Data Administration (NDA), said the country’s digital economy has gained strong momentum, with the added value of the core digital industries accounting for about 10% of GDP.

During Liu’s presentation at a forum of the 8th Digital China Summit in Fuzhou, capital of Fujian province, he said significant progress has been made in fields such as AI, integrated circuits, industrial software and basic software.

The number of China’s ‘lighthouse factories’, which represent the highest level of intelligent manufacturing, represents more than 40% of the global total, demonstrating the deep integration of data elements with digital technologies, especially AI, he noted.

Liu said the administration will enhance the core competitiveness of the digital economy, develop new quality productive forces in accordance with local conditions, support technological innovations and industrial applications of AI, and nurture new enterprises working in the digital economy.

More efforts will be made to promote the in-depth integration of the real economy and the digital economy, while strengthening international co-operation in the digital economy and facilitating the development of cross-border e-commerce, he added.

The Digital China Development Index – which records the country’s digital progress – climbed to 150.51 in 2024, up 10.65% from the previous year, according to the NDA’s national institute for data development.

Jiang Xiaojuan, a professor at the University of Chinese Academy of Social Sciences, said the internet, big data and AI have significantly enhanced the capabilities of data generation, transmission and processing.

However, Jiang said more efforts are needed to accelerate the sharing, development and use of public data and improve data governance systems “to further unleash the immense value of data elements”.

Industry experts also highlighted that AI is spearheading the development of the digital economy, and seamlessly integrating into every facet of industrial development and people’s lives.

Wu Hequan, from the Chinese Academy of Engineering, underscored the significance of advanced digital technologies in improving the production efficiency of enterprises and lowering operational costs, estimating that the revenue from AI software and services is projected to showcase an upward trajectory in the future and will serve as an important driving force for GDP growth.

“The revolutionary advancement of AI technology has become the key to promoting the sustainable development of human society,” said Huo Jia, vice-president of Alibaba Cloud Intelligence Group, the cloud computing unit of Chinese tech giant Alibaba Group.

Huo said the company is ramping up efforts to build intelligent computing power platforms; expand the application of AI models in a broad range of sectors including finance, government affairs, energy and healthcare; and boost industrial digital transformation.

NDB about to enter new ‘golden age’

The New Development Bank (NDB), the financial organisation that promotes the development of emerging markets and developing countries, is set to enter another ‘golden age’ as it advances its investment in infrastructure and innovation with China’s continued support, according to Dilma Rousseff, the bank’s president.

She made the comment after President Xi Jinping’s recent visit to the bank’s headquarters in Shanghai.

President Xi defined the NDB’s first decade from its establishment in 2014 as “a golden decade”, with the bank approving 120 projects and investing $40 billion in that time, according to Rousseff.

Xi suggested that the NDB continue to adhere to the principles that created the bank, which involve investing in the BRICS countries. It should invest in areas, including digital and social infrastructure, that will make a difference in developing countries and emerging economies, said Rousseff, quoting Xi.

The Chinese president underlined the importance of continued investment in innovation and technology, and that the NDB should grow into a modern bank by using all possible digital instruments available, including artificial intelligence and big data.

By keeping the NDB’s commitments, as Xi has suggested, the bank will head for “the second golden decade”, she added.

The NDB was founded by Brazil, Russia, India, China and South Africa (the original BRICS) in 2014 with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries. It was formally opened in July 2015.

In 2021, the NDB began expanding its membership and admitted Bangladesh, Egypt, the United Arab Emirates and Uruguay as new member countries.