Zhejiang strides into new era of digital economy

Booming digital economy

With digital technologies being applied to more and more areas – facial recognition, digital home appliances, smart cities – the central government has issued calls to digitalize industries and promote integration of new technologies with the traditional economy.

Zhejiang province recognizes the increasingly important role of the emerging economy. To answer the call of the central government, Zhejiang has embarked on a journey toward digital prosperity, hailed it as the "No 1 Project" in the development of local industries in 2018. 

Hangzhou, capital city of Zhejiang province, plays a leading role in the development of digital economy. [Photo/VCG]

The southeastern province has great ambition to usher its people into the new era of the digital economy. Che Jun, secretary of Zhejiang Provincial Party Committee, has said that the province will pay closer attention to the digital economy and build a more efficient financial-political system in the next few years.

Actions and moves

After Yuan Jiajun, governor of Zhejiang province, appealed in January 2018 for a new economy centering on digital industries, a smart manufacturing action plan was launched the following month, shedding light on the development of digital economy in the next two years. 

Yuan Jiajun, governor of Zhejiang province, appeals in January 2018 for a new economy centering on digital industries. [Photo/zjol.com.cn]

In March 2018, the second Zhejiang Cloud Computing and Big Data Industry Promotion Conference was held in Hangzhou, the capital of Zhejiang. The conference brought academicians and talents together and encouraged them to share their ideas and thoughts on the industry.

Later, a work plan for constructing national demonstration zones was proposed. The plan focuses on integrating digital industrialization and industrial digitalization on a deeper level. Yuan Jiajun stressed that digital government should be prioritized as a trademark project in developing a digital Zhejiang. 

At the same time, the “1+N” industrial internet platform and alliance was also about to be constructed according to the latest industrial internet strategy.  

The first Provincial Digital Economy Development Conference commenced on Jul 24, 2018, declaring the full-scale implementation of the No 1 Project. A series of implementation plans was then launched to offer guidance on economic reform. 

The fifth World Internet Conference, held in Hangzhou in November 2018, was also a significant event in promoting the corporatization of digital industries.  

Progress and breakthroughs

The past several months have seen impressive progress. 

Smart applications and services are now at the fingertips of the people of Zhejiang. With only one identity card and one smartphone, people can register in hospitals, pay their utility bills and order food at restaurants. 

One-stop services are now offered in Zhejiang for businesses. Within 100 days, newly started enterprises or projects can get their licenses.

One-stop services are now offered in Zhejiang for businesses. [Photo/zjol.com.cn]

In 2018, the industrial added value of the core industries of the digital economy gained year-on-year growth of 13.1 percent. A significant number of high-tech enterprises were hatched in the province, including 10,539 technological small and medium enterprises and 28 listed companies.

On Nov 29, the Study on China’s Top 100 Cities of the Digital Economy in 2018 was released, with seven cities of Zhejiang ranked among the top 50, including Hangzhou, Ningbo and Wenzhou.

Prospects and expectations

The province plans to launch 5G services ahead of other places and apply City Brain, a smart city system that manages a city based on all-scale data and information. It will strive to become a demonstration region of the digital economy for coming years.

Smart workshops, digital enterprises and projects will be constructed with the aim of raising the industrial added value of the core industries of the digital economy to a higher level. 

An investment fund of 10 billion yuan ($1.49 billion) will encourage the development of digital technologies and industries. Hangzhou and Wuzheng will lead the way in building national digital economy demonstration zones.