China’s 5-Year Plan Focuses on Building a Digital Economy

Not to be left behind in the race to digitize its economy, China has issued its latest five-year plan to promote its development, the General Office of the State Council announced.

The administrative arm of the People’s Republic of China said the digital economy should be in place by 2025. If successfully implemented, it is expected to account for 10% of gross domestic product, the market value of all goods and services produced within a country.

“Efforts will be made to accelerate the construction of the information network infrastructure, and a national-level integrated big data center system coordinating computing power, algorithms, data, and application resources,” the report said.

At the same time, the plan said digital innovation must play a larger role in leading economic development and focus on the integration between digital technology and the real economy.

Under the plan, efforts will be made to hasten creation of an information network infrastructure, along with a national, integrated big data center system designed to coordinate data, computing power, algorithms and application resources.

“Data resources processing will be improved, and the data service industry will be fostered and expanded,” according to the report.

To accelerate digital transformation and upgrading in commerce, large companies will be encouraged to build integrated digital platforms.

The plan also recommends construction of smart cities, parking lots and charging centers will be encouraged in newly built residential areas.

Digitization of public services is also a priority, China said, and efforts will be made to ensure digital social services benefit reach more beneficiaries.

China also does not to be left behind of the movement towards digital currency. While crypto has been banned, nonfungible tokens (NFTs) are hot and China can’t ignore them anymore. As a result, the nation is building a more controllable platform for digital collectables.  But cautiously large tech firms and developers are rebranding them “Digital Certificates.”

Read more: China Is Building Its Own NFT Behind the Great Firewall