China’s E-Economy: An overview of Opportunities and Threats

Abstract

China is the world biggest country in terms of population. It has the highest number of internet and mobile users. The world most substantial labor forces reside in China. A large proportion of the world is dependent on its exports. Chinas economy grew, in the last decade because of its exports, it got attention all over the world. Economy experts consider China as an economic threat to the USA. However, more studies are mainly focused on China populations, Exports, and labor focus because of the high quantity. The dynamics of the economy has changed in the last decade because of internet penetration across the globe. The Chinas role in digital aspects is least studied. Therefore this paper has focused on providing an overview of E-economy of China. Through literature and world-leading financial and consultancy firms reports it has been observed that just like other aspects of the economy, the e-economy of China is also growing. Today in 2019 where more than 50% of the world has access to the internet, It is considered that the Silicon Valley of USA is deriving the digital age because all big tech companies are located in the USA. USA main exports are Internet-related or Tech products. It is a fact that the USA E-economy contributes more to GDP compared to China. However, China has a potentially bright future in this area and can be the leading country in technology. Exploring the future possibilities, the opportunities which China has to grow in the digital age, the researchers found already there are areas in digital aspects where China has to outnumber the USA. For instance, the Fintech China got more Capital venture investments in 2016 compared to the USA. China is the world second country after the USA in attracting venture capital investment for Virtual Reality, Autonomous Driving, Wearables technologies, Education Technology, Robotics and drones, and 3D Printing. China is in the third position in terms of attracting investment for big data and artificial intelligence. The study concludes that China needs to focus more on big data and AI to continue its growth.  The growing digitalization can improve agriculture and industrial activities as the economy is maturing. The paper is useful for digital experts to view the understand the e-economy in depth, future researchers can narrow down the topic to observe the impact of E-economy on agriculture and industrial sector.