China's digital economy flourishes as internet user base tops 1.1 billion
China's internet user base has exceeded 1.1 billion, fueling the growth of its digital economy. This milestone highlights the rapid expansion of online engagement and the increasing influence of technology on various sectors within the country.
TroibNews 
As of December 2024, the number of internet users in China reached 1.1 billion, reflecting an increase of 16 million compared to the previous year, according to a report on the country’s internet development released on Friday.
This milestone underscores the immense potential of China’s digital economy and its significant contribution to technological innovation.
The report from the China Internet Network Information Center indicated that internet penetration in China achieved 78.6 percent in 2024, marking 30 years since the country became fully connected to the global internet.
China now has the largest internet infrastructure worldwide, featuring advanced technologies that are propelling the rapid advancement of its digital economy.
By the end of last year, over 1 billion people in China were using online payment services, while 974 million engaged in online shopping, which signifies an increase of 59.5 million from the end of 2023, as detailed in the report.
"China continues to lead the world in both online retail sales and mobile payment penetration," the report stated.
According to data from China's National Bureau of Statistics released on Friday, the country's total online retail sales in 2024 reached 15.52 trillion yuan, representing a 7.2 percent increase from the previous year. Online retail sales of physical goods rose by 6.5 percent year on year to 13.08 trillion yuan, which accounted for 26.8 percent of total retail sales of consumer goods.
The ongoing growth of China’s online retail sector is attributed to the rapid expansion of 5G and broadband coverage across the country, including urban and rural regions. By November 2024, China had established a total of 4.19 million 5G base stations, and the number of gigabit broadband users reached 209 million.
Stable internet connectivity has encouraged online shopping among a broader range of internet users, notably including the elderly and those in rural areas. Data from CNNIC shows that nearly 70 percent of internet users aged 60 and above, along with over 76 percent of rural internet users, engage in online shopping.
Short video and livestream platforms have emerged as primary channels for online shopping, particularly among rural netizens. The center's data indicates that about 71 percent of viewers of short videos and livestreams have made purchases after viewing, with more than half of users regularly engaging in live-stream sales.
Additionally, micro-dramas—short, engaging narratives typically lasting just a few minutes—have surfaced from China's growing short video industry as another promising segment of the digital economy.
As of December 2024, the audience for micro-dramas in China reached 662 million, which is nearly 60 percent of total internet users, according to the data.
The micro-drama sector generated around 647,000 direct and indirect job opportunities in the past year, with experts projecting that the market for micro-dramas may surpass the total box office revenue on the Chinese mainland for the first time in 2024, as reported by the China Netcasting Services Association.
Online tourism services, an essential part of China’s quickly recovering tourism market, have also seen robust growth due to the swift integration of the tourism sector with the digital economy.
As of December 2024, the number of users booking travel online reached 548 million, an increase of 39.35 million from the previous year, representing 49.5 percent of the total internet user base, according to the report.
The report also emphasized that AI technology is being extensively utilized in online marketing, smart diagnostics, customer service, and various other areas, driving significant changes in industrial manufacturing and economic growth within China.
It noted that at least 331 million individuals, or 23.5 percent of the population, were aware of generative AI products, and 249 million reported using these products, primarily for assistance with inquiries and office-related tasks.
James del Carmen contributed to this report for TROIB News
This milestone underscores the immense potential of China’s digital economy and its significant contribution to technological innovation.
The report from the China Internet Network Information Center indicated that internet penetration in China achieved 78.6 percent in 2024, marking 30 years since the country became fully connected to the global internet.
China now has the largest internet infrastructure worldwide, featuring advanced technologies that are propelling the rapid advancement of its digital economy.
By the end of last year, over 1 billion people in China were using online payment services, while 974 million engaged in online shopping, which signifies an increase of 59.5 million from the end of 2023, as detailed in the report.
"China continues to lead the world in both online retail sales and mobile payment penetration," the report stated.
According to data from China's National Bureau of Statistics released on Friday, the country's total online retail sales in 2024 reached 15.52 trillion yuan, representing a 7.2 percent increase from the previous year. Online retail sales of physical goods rose by 6.5 percent year on year to 13.08 trillion yuan, which accounted for 26.8 percent of total retail sales of consumer goods.
The ongoing growth of China’s online retail sector is attributed to the rapid expansion of 5G and broadband coverage across the country, including urban and rural regions. By November 2024, China had established a total of 4.19 million 5G base stations, and the number of gigabit broadband users reached 209 million.
Stable internet connectivity has encouraged online shopping among a broader range of internet users, notably including the elderly and those in rural areas. Data from CNNIC shows that nearly 70 percent of internet users aged 60 and above, along with over 76 percent of rural internet users, engage in online shopping.
Short video and livestream platforms have emerged as primary channels for online shopping, particularly among rural netizens. The center's data indicates that about 71 percent of viewers of short videos and livestreams have made purchases after viewing, with more than half of users regularly engaging in live-stream sales.
Additionally, micro-dramas—short, engaging narratives typically lasting just a few minutes—have surfaced from China's growing short video industry as another promising segment of the digital economy.
As of December 2024, the audience for micro-dramas in China reached 662 million, which is nearly 60 percent of total internet users, according to the data.
The micro-drama sector generated around 647,000 direct and indirect job opportunities in the past year, with experts projecting that the market for micro-dramas may surpass the total box office revenue on the Chinese mainland for the first time in 2024, as reported by the China Netcasting Services Association.
Online tourism services, an essential part of China’s quickly recovering tourism market, have also seen robust growth due to the swift integration of the tourism sector with the digital economy.
As of December 2024, the number of users booking travel online reached 548 million, an increase of 39.35 million from the previous year, representing 49.5 percent of the total internet user base, according to the report.
The report also emphasized that AI technology is being extensively utilized in online marketing, smart diagnostics, customer service, and various other areas, driving significant changes in industrial manufacturing and economic growth within China.
It noted that at least 331 million individuals, or 23.5 percent of the population, were aware of generative AI products, and 249 million reported using these products, primarily for assistance with inquiries and office-related tasks.
James del Carmen contributed to this report for TROIB News
