China to become front-runner in digital trade

China is becoming a front-runner in developing digital trade, fueled by booming internet use, and the emergence of big data, cloud computing and other new technologies, according to a new report. After years of development of digital technologies, China is now among the world’s top 10 countries for digital trade. The country has ranked first in the retail export value of cross-border e-commerce. The report was released at a forum of the China International Big Data Industry Expo 2021, in Guiyang, Guizhou province. The report, published by the Chinese Academy of International Trade and Economic Cooperation (CAITEC), which is part of the Ministry of Commerce (MOFCOM), said digital trade mainly encompasses digitally-enabled transactions in goods, services as well as data, which helps promote the transformation of global industrial, supply and value chains and improve efficiency in the production and operation of enterprises.

During 2020, Covid-19 necessitated rapid development of new forms of digital businesses such as online meetings, telecommuting, e-commerce, mobile payments, cloud services, online games and online healthcare services in China, said Li Jun, Director of the Department of International Trade in Services of the CAITEC. Li said emerging digital technology solutions and digital trade will drive the digital transformation of traditional sectors, including construction and transportation, and inject new impetus into economic recovery. Citing the new report, Li said more efforts are also needed to gain a competitive edge. China should accelerate the building of a digital trade platform, open up wider to the outside world, help expand the overseas market and improve data governance and the free cross-border flow of data.

China’s digital trade is growing rapidly. Data from the Ministry of Commerce showed the volume of China’s import and export digital trade surged 6.7% to USD203.6 billion in 2019, accounting for 26% of the country’s total import and export service trade. “With the rapid development of new forms of digital services such as digital content, search engines, social media, cloud computing and digital payments, digital trade has become the frontier of international cooperation and competition,” said Zhang Wei, Deputy Director of CAITEC. Citing the Technology and Innovation Report 2021 by the United Nations Conference on Trade and Development (UNCTAD), Zhang noted 11 cutting-edge technologies such as AI, the Internet of Things (IoT), big data, blockchain and 5G as a whole are projected to create a market worth over USD3.2 trillion by 2025, the China Daily reports.

The three-day China International Big Data Industry Expo 2021 in the Guizhou, provincial capital of Guiyang, has attracted 225 enterprises from home and abroad under the theme “Embrace digital intelligence, Deliver new development”. Six high-level talks were held on topics such as data security, digital services, and the digitalization of industries. Vice Premier Liu He delivered a speech via video link at the opening ceremony. He said China will accelerate efforts to expand the application of big data and strengthen infrastructure construction and talent cultivation in the industry. “The big data industry has become a significant and decisive force to promote the transition of the industrial economy towards the digital economy,” said Liu Liehong, Vice Minister of Industry and Information Technology.