IMF Working Papers

China’s Digital Economy: Opportunities and Risks

By Longmei Zhang, Sally Chen

January 17, 2019

Download PDF

Preview Citation

Format: Chicago

Longmei Zhang, and Sally Chen. China’s Digital Economy: Opportunities and Risks, (USA: International Monetary Fund, 2019) accessed November 8, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

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.

Subject: Digital economy, Digitalization, Economic sectors, Employment, Financial services, Fintech, Information technology in revenue administration, Labor, Revenue administration, Technology

Keywords: Aggregate employment growth, China, Data sharing, Digital economy, Digitalization, Employment, Financial stability, Fintech, Fintech company, Fintech industry, Firm, Firms in the U.S., Global, ICT company, Industry, Information technology in revenue administration, Market structure, Money market fund, Pay, Payment, Productivity, Supply chain, Third-party payment platform, Third-party payment system, Venture capital, WP

Publication Details

  • Pages:

    24

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2019/016

  • Stock No:

    WPIEA2019016

  • ISBN:

    9781484389706

  • ISSN:

    1018-5941

You May Also Be Interested In...

The Federal Democratic Republic of Ethiopia: First Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for The Federal Democratic Republic of Ethiopia

November 4, 2024

Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

November 1, 2024

Grenada: Technical Assistance Report-Systemic Risk Monitoring

November 1, 2024

Mexico: 2024 Article IV Consultation and Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Mexico

November 1, 2024