CHINA S DIGITAL TRANSFORMATION AN ANALYSIS FROM A SOCIO-ECONOMIC PERSPECTIVE

Transcription

1 CHINA S DIGITAL TRANSFORMATION AN ANALYSIS FROM A SOCIO-ECONOMIC PERSPECTIVE

2 CHINA IS A LEADING COUNTRY IN DIGITAL ECONOMY Retail E-commerce Transaction Value %, $ billion Mobile payments, 2016 $ billion Global unicorns, June 2016 %; number; $ billion 100%= 495 1, %= Rest of the world Rest of the world U.S. 11x U.S CHINA CHINA < China U.S. Number of unicorns Valuation Source: McKinsey Global Institute (MGI), CHINA S DIGITAL ECONOMY: A LEADING GLOBAL FORCE, August 2017

3 CHINA S DIGITAL PORTION OF THE GDP Digital Economy China s GDP 30.3% 15.2% YoY Growth Rate 21.3% Source: China Academy of Information and Communication Technology ( CAICT ), Ministry of Industry and Information Technology ( MIIT )

4 THE BASIC FEATURES OF DIGITAL ECONOMY The digital economy refers to a broad range of economic activities that includes using digitized information and knowledge as the key factor of production, modern information networks as the important activity space, and the effective use of Information and Communication Technology (ICT) as an important driver for efficiency-enhancing and economic structural optimization. G20 Digital Economy Development and Cooperation Initiative Hangzhou, China, 2016

5 THE DIGITAL COMPONENTS OF THE GDP The integrated component The ICT portion (tech sector, such as Information Technology, telecommunication, the internet sector) The integrated component 76.2% The ICT portion 23.8% Source: China Academy of Information and Communication Technology ( CAICT ), Ministry of Industry and Information Technology ( MIIT )

6 No pure internet enterprise will exist in future society. All traditional industries and enterprises will have the genes of the internet, and the border of digital economy and real economy will vanish at last. 未来的社会将不会再有纯粹的互联网企业, 所有的 传统 产业和企 业都将融入互联网的基因, 数字经济与实体经济的分野, 终将消失 Huateng Ma Chairman of the Board and CEO

7 TWO FUNDAMENTAL INGREDIENTS SUPPLY SIDE DIGITAL INFRASTRUCTURE MASSIVE USER ADOPTION RATE

8 GOVERNMENT AS A POLICY MAKER, INVESTOR, INNOVATOR, AND CONSUMER The National Computing and Networking Facility Project Major network: CSTNET, CHINANET, CERNET, CHINAGBNET realized interconnection The Internet of Things" strategy The birth of the 4G era The State Council launched AI Development Plan 2000 The birth of China s Mobile Internet The birth of the 3G Era The "Broadband China" strategy The Internet Plus" strategy is Proposed in Government Work Report

9 Big data Cloud Computing Entertainment Government Health Care Manufacturing Industry Transportation INTERNET PLUS Tourism Artificial Intelligence Education Business Internet of Things Finance Agriculture

10 CHINA S UNIQUE INTERNET ECOSYSTEM

11 CONNECTING EVERYTHING, EMPOWERING EVERYONE 连接一切, 赋能于人

12 TWO FUNDAMENTAL INGREDIENTS SUPPLY SIDE DIGITAL INFRASTRUCTURE DEMAND SIDE MASSIVE USER ADOPTION RATE

13 CHINA IS THE WORLD S LARGEST MOBILE MARKET Rest of the world CHINA 724 Million 52%+ of China s Population Utilize Mobile Access Europe and North America 733 Million Europe and North America s Population Utilize Mobile Access Source: CNNIC, emarketer

14 FROM A TREND FOLLOWER TO A GLOBAL TREND SETTER BIKE-SHARING CASHLESS LIFESTYLE DRONES

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16 We WE BUILT built THIS this COUNTRY country WITH on ones ONES and AND zeroes! ZEROES!

17 THE DIGITAL CIVILIZATION The Stone Stool Civilization The Agricultural Civilization The Industrial Civilization The Digital Civilization Unsettled Settled & Self-sufficient Mechanical Production Mass Production Globalization of People, Capital and Products PC and Internet Globalization of Data ~12,000 BC 12,000 BC Late 19 th Century Early 20 th Century 1960s 1980s 21st Century

18 HOW TO MEASURE THE DIGITAL ECONOMY?

19 TECHNOLOGY EVANGELIST VIEW ON GDP A PARADOX OF DIGITAL CIVILIZATION

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21 TECHNOLOGY EVANGELIST VIEW ON GDP A PARADOX OF DIGITAL CIVILIZATION A COMPASS TO THE NEW CIVILIZATION

22 CHALLENGES OF GDP FROM THE HISTORICAL PERSPECTIVE Environment Damage Costs caused by pollutions Costs caused by environmental damage Loss of biodiversity Happiness and Welfare Value of leisure time Value of unpaid work Social welfare Role of Digital Digital changes in production Digital changes in consumption Growth in consumer welfare Computer PC PC & Internet Mobile AI Silent Spring Only One Earth Measure of Economic Welfare (MEW) Bhutan GNH Index The:Limits to Growth A New Concept of Development Our Common Future Net Domestic Product (NDP) The Index of Sustainable Economic Welfare (ISEW) Human Development Index (HDI) Green GDP Sustainable Development Index (SDI) Millennium Development Goals (MDG) Beyond GDP Transforming our World: The 2030 Agenda for Sustainable Development Partnership for Action on Green Economy (PAGE) Happiness and Well-Being: Defining a New Economic Paradigm Gross National Happiness(GDH) Better Life Index Better Life Index Measuring the Digital Economy

23 TECHNOLOGY EVANGELIST VIEW ON GDP A PARADOX OF DIGITAL CIVILIZATION A COMPASS TO THE NEW CIVILIZATION AN INTEGRATION OF HOPE

24 OF THE PEOPLE, BY THE PEOPLE, FOR THE PEOPLE 为人民谋幸福

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26 Travel to outer space. If the human race is to continue for another million years, we will have to boldly go, where no one has gone before. Stephen Hawking 2017 TENCENT WE

27 THANK YOU.