By December 2024, the number of internet users in China reached a staggering 1.1 billion, marking an increase of 16 million from the previous year, according to a recent report by the China Internet Network Information Center (CNNIC). This milestone underscores the vast potential of China’s digital economy and its pivotal role in driving technological innovation.
Internet penetration in China soared to 78.6 percent in 2024, just three decades after the country fully connected to the global internet. Boasting the world’s largest internet infrastructure equipped with advanced technologies, China is fueling rapid growth in its digital economy.
The report highlighted significant growth in online payment users, surpassing 1 billion, and online shoppers reaching 974 million—a rise of 59.5 million from the end of 2023. “China continues to lead the world in both online retail sales and mobile payment penetration,” the report stated.
Data from the National Bureau of Statistics showed that in 2024, China’s total online retail sales hit 15.52 trillion yuan (about $2.18 trillion), a 7.2 percent year-on-year increase. Online retail sales of physical goods grew by 6.5 percent to 13.08 trillion yuan, accounting for 26.8 percent of the total retail sales of consumer goods.
The steady development of China’s online retail sector is bolstered by the rapid expansion of 5G and broadband coverage nationwide, spanning both urban and rural areas. As of November 2024, China had built 4.19 million 5G base stations, with gigabit broadband users reaching 209 million.
Stable internet connectivity has fostered online shopping among a wider range of users, including the elderly and rural residents. Nearly 70 percent of netizens aged 60 and above and over 76 percent of rural internet users shop online, according to CNNIC.
Short video and livestream platforms have become major mediums for online shopping, especially among rural users. Approximately 71 percent of short video and livestream viewers have made purchases after watching, with more than half regularly tuning in to livestream sales.
Emerging from China’s booming short video industry, micro-dramas—typically a few minutes long with engaging plots—have become another thriving sector of the digital economy. As of December 2024, the micro-drama audience in China reached 662 million, accounting for nearly 60 percent of total internet users.
The micro-drama industry directly and indirectly created around 647,000 job opportunities last year. It is expected that the market for micro-dramas could surpass the total box office revenue on the Chinese mainland for the first time in 2024, according to the China Netcasting Services Association.
Online tourism services, a vital component of China’s rapidly recovering tourism market, have also experienced significant growth, driven by the accelerated integration of the tourism industry 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 a year ago, representing 49.5 percent of the total internet user base.
Artificial intelligence (AI) technology, widely applied in online marketing, smart diagnostics, customer service, and various other fields, has been driving profound changes in industrial manufacturing and economic growth in China. The report noted that at least 331 million people, or 23.5 percent of the population, were aware of generative AI products, while 249 million people reported having used them, mainly for answering questions and office assistance.
With the continuous expansion of internet infrastructure and the growing adoption of digital technologies, China’s digital economy is poised for further growth, shaping the future of global technological innovation and economic development.
Reference(s):
China's internet users surpass 1.1 billion, powering digital economy
cgtn.com
