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China’s Digital Economy: Opportunities and Risks

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  • Ms. Longmei Zhang
  • Ms. Sally Chen

Abstract

China’s digital economy has expanded rapidly in recent years. While average digitalization of the economy remains lower than in advanced economies, digitalization is already high in certain regions and sectors, in particular e-commerce and fintech, and costal regions. Such transformation has boosted productivity growth, with varying impact on employment across sectors. Going forward, digitalization will continue to reshape the Chinese economy by improving efficiency, softening though not reversing, the downward trend of potential growth as the economy matures. The government should play a vital role in maximizing the benefits of digitalization while minimizing related risks, such as potential labor disruption, privacy infringement, emerging oligopolies, and financial risks.

Suggested Citation

  • Ms. Longmei Zhang & Ms. Sally Chen, 2019. "China’s Digital Economy: Opportunities and Risks," IMF Working Papers 2019/016, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2019/016
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    References listed on IDEAS

    as
    1. Irving Fisher Committee, 2017. "Big Data," IFC Bulletins, Bank for International Settlements, number 44, July.
    2. World Bank Group & People's Bank of China, 2018. "Toward Universal Financial Inclusion in China," World Bank Publications - Reports 29336, The World Bank Group.
    3. Ms. Mitali Das & Benjamin Hilgenstock, 2018. "The Exposure to Routinization: Labor Market Implications for Developed and Developing Economies," IMF Working Papers 2018/135, International Monetary Fund.
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    Cited by:

    1. Elena PELINESCU & Marioara IORDAN & Mihaela-Nona CHILIAN, 2021. "Digitization and Population Welfare in the New EU Member States," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 59-75, December.
    2. Padmashree Gehl Sampath, 2021. "Governing Artificial Intelligence in an Age of Inequality," Global Policy, London School of Economics and Political Science, vol. 12(S6), pages 21-31, July.
    3. Guoge Yang & Feng Deng & Yifei Wang & Xianhong Xiang, 2022. "Digital Paradox: Platform Economy and High-Quality Economic Development—New Evidence from Provincial Panel Data in China," Sustainability, MDPI, vol. 14(4), pages 1-26, February.

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