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China 15/12/2020 “China’s digital economy. Experience of transforming the infrastructure of the national economy”
“China’s digital economy. Experience of transforming the infrastructure of the national economy”

Tashkent, Uzbekistan (UzDaily.com) -- The author of the book is Ma Huateng, the creator and head of the Chinese telecommunications company Tencent. His fortune is estimated at US$57.4 billion. According to experts, it was this company that became the face of China’s digital transformation.

Tencent is a large Chinese ICT investment holding company. It was founded in 1998 Subsidiaries, both in China itself and in other countries of the world, specialize in various areas of high-tech business, incl. various Internet services, developments in the field of artificial intelligence and electronic entertainment.

In the book, the author writes about the experience and prospects of digital transformation in China, in particular, about new technologies in agriculture and their role in the fight against underdevelopment and poverty in villages. The state policy of digitalization of the country, key approaches of strategies for transformation of public administration and various sectors of the economy with national specifics are analyzed.

I. Key approaches to the implementation of the digital economy. The state policy of the PRC leadership was based on the principle that digitalization changes not only the country’s economy, but also the lives of millions of people.

According to the author, digitalization is not a set of technologies, projects and systems, but a coordinated and interconnected movement in several of the following areas: a) Internet and communications; b) legislation and regulation; c) human resources and digital literacy; d) systems and platforms of a new generation, on which enterprises and entire industries operate on new principles and business processes.

According to the Chinese Academy of Cyberspace Research, at the end of 2019, the share of the digital economy in the PRC’s GDP exceeded 36%. Thanks to her, the country managed to create 2.8 million new jobs and ensure an annual employment growth of 21%.

The first results of the development of China’s digital economy have shown great potential for the dynamic growth of science and technology.

As a result, mobile payments have become very popular in a short time. The exchange of digital data has made it possible to separate the ownership of products from the right to use them.

II. Society’s readiness for digitalization processes. The book emphasizes that the readiness of society for these changes plays an important role in the digitalization process. In this context, the author focuses on the presence or creation of the following system-forming factors: 1) digital literacy of the population; 2) creation of digital infrastructure; 3) the availability of digital technologies.

It is argued that with the help of technology in the digital economy, such an important factor in the consolidation of society as trust is formed.

As a result of the introduction of digital technologies in China, a number of amenities have appeared for citizens, and the range of social services has expanded.

In particular, carsharing (renting a car for a certain period of time), joint taxi rides and joint use of real estate have appeared. Benefits from renting made it possible to efficiently and economically use all available social resources.

In the educational sector, the growing role of interactive learning, which immerses students in a qualitatively different educational environment, is emphasized. Among the tasks of digitalization in the field of education, the formation of an energetic market environment, i.e. competencies that allow the new generation to successfully adapt to a highly dynamic economy in which mobility and constant renewal of skills play a central role.

In the agricultural sector, the introduction of a control system began in China in 2005. Experimental stations were set up in Beijing, Jiangsu, Shaanxi, Fujian, Tianjin, Zhejiang and other cities and provinces. Also, work was carried out on the coding of production sites, the introduction of documentation on production bases, the standardization of packaging marking, etc. The Safe Vegetables program has been introduced. Under this brand, 186 bases, 10 regional and county-level regulation centers, 72 rural-level regulation centers have been established in Tianjin.

In 2015, e-commerce giants such as Alibaba, JD.com and Suning.com were the first in the country to open chain stores in villages, launching their expansion into the rural market. This year was named “The first year of online shopping in the village”.

In October 2016, the implementation of the Internet Poverty Action Agenda began, to which JD.com, Alibaba, Suning.com and others actively responded.

As part of this program, the Chinese city of Longnan has become a "model city for poverty alleviation through Internet commerce." 1,715 online stores were opened there. During the experiment, city entrepreneurs created 57 thousand jobs, including employing more than 14 thousand people. from poor families. This economic model was called "Longnan model", its principle became: "one store feeds the whole village."

III. Some forecasts for further digitalization of the economy. According to the author, at the next stage of digitalization of the Chinese economy, it is expected to merge with the manufacturing industry. However, this requires system planning, changes starting from high-level design when demand creates supply.

The fact that all the processes associated with the digitalization of the Chinese economy took place under the strict control of the state and the ruling party requires attention.

In this direction, there are three production models that are characteristic of the manufacturing industry modernized with the help of digital technologies: a) joint production through interaction over the network; b) "smart production" under the order, instead of the same type serial;

c) service production - focused on a higher price segment than before.

These models are aimed at integrating traditional and digital economies, i.e. digital technologies should not completely destroy the old economic order, but bring less developed sectors of the economy to a new level of development.

China’s digitalization is predicted to continue thanks to its huge Internet user community, growing digital infrastructure quality and demand for digital products.

In general, the book emphasizes that the rapid growth of China in recent years is due to the processes of digitalization, the ever-increasing share of high technologies in various areas of life, from medicine and science to government and public transport.

 

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