Residents of China have gotten accustomed to a cashless lifestyle in recent years. You don't need a wallet to go shopping, traveling or dining or pay utility bills across the country, just a smartphone. And mobile payment goes beyond daily purchases: You can even get a loan or invest in money-market funds through your phone.

But mobile payment is only part of the efforts to construct a digital China. Technologies associated with the Internet of Things, big data, artificial intelligence and blockchain have been integrated into all aspects of economic and social development. Digitalization has become not just a lifestyle but also an emerging powerhouse for economic growth.

The digital economy is the economic activity that results from billions of everyday online connections among people, businesses, devices, data and processes. The speed of its development, the extent of its reach and its impact in China are unprecedented; it is becoming a critical force reallocating resources, reshaping the economic structure and transforming global competition.

A new strategy for the country's information technology development, the Digital China initiative covers the economic, political, cultural, social and ecological fields. The Outline of the 14th Five-Year Plan (2021-25) and the Long-Range Objectives Throughout the Year 2035, issued in March 2021, call for fostering new advantages of the digital economy, accelerating the creation of a digital society, improving the building of a digital government and creating a sound digital ecology.

The Chinese Government has launched many related initiatives, such as the Internet Plus action plan that aims to integrate the Internet with traditional industries, and a national big data strategy. China's digital economy has ranked second in the world for several years. Since the onset of COVID-19 in particular, digital technologies have played an important role in supporting the fight against the pandemic and resuming economic activities.

However, China's digital development still has room for improvement. For instance, the country needs to climb the technology ladder by seeking breakthroughs in key technologies. It should also participate in international cooperation, presenting Chinese solutions to improve multilateral digital governance and safeguard digital security.