The success of China’s economic recovery can be attributed to its massive digital infrastructure, Beijing-based think tank Center for China and Globalization said.
According to the white paper “Digital Economy Development in China 2021” of the Ministry of Industry and Information Technology, China’s digital economy made up nearly 40 percent of its GDP last year as life moved online during the pandemic.
There’s a shift in the Chinese economy from growth driven by public investment and net exports during the first phase of recovery toward growth driven by domestic consumption and private investment.
As in past decades, rapid recovery of the world’s second largest economy was shored up by its manufacturing sector, as the world craves for more medical equipment and electronics.
In the meantime, consumption has contributed to economic growth as shoppers return to malls and restaurants while investment remains robust.