A Literature Review of Digital Economy in China: Trends, Drivers, and Implications

Abstract

The digital economy, characterized by the use of digital tools and platforms for various economic activities, holds paramount importance in shaping contemporary economies. This work conducts a thorough review of Chinas digital economy, focusing on key trends, influential drivers, and their extensive implications. This review begins by examining prevailing trends, encompassing technological advancements and the growth of e-commerce. Subsequently, it delves into the regulatory, innovative, and market forces propelling Chinas digital transformation. The implications of Chinas digitalization on industries and societal dynamics are also investigated. This review reveals how Chinas digital economy is fundamentally reshaping its economic and social landscape. Drawing primarily from evidence in the political, economic, and socio-cultural realms, this work underscores the broad macro-level implications. However, the review provides a limited exploration of certain potentially significant factors, such as environmental considerations and the convergence of digital technologies with other industries and regions. Future research directions should delve deeper into sector-specific digital transformation trends, offering a more focused perspective on the opportunities and challenges emerging from this transformative digitization.