The current scientific and technological revolution occurring in the Internet, big data and artificial intelligence is promoting rapid growth of the digital economy and profoundly influencing the world’s industrial development patterns and competition ecology.
China attaches great importance to the development of the digital economy. “Building digital industry clusters with international competitiveness” is one of the specific measures to promote the development of the digital economy outlined by last month’s Third Plenary Session of the 20th Central Committee of the Communist Party of China.
According to a plan on the development of the digital economy during the 14th Five-Year Plan period (2021-25) issued by the State Council in 2022, China’s digital economy is scheduled to be in full expansion mode, with the added value of core industries in the digital economy accounting for 10 percent of GDP by 2025. In this context, building digital industry clusters with international competitiveness is regarded as an important economic growth strategy.
According to the Ministry of Industry and Information Technology, the establishment of digital industry clusters mainly aims to break bottleneck constraints such as high-end chips, basic software and research instruments. They will focus on accelerating the innovation of new-generation information technology, humanoid robots, artificial intelligence, quantum information, blockchain and brain-computer interfaces, thus cultivating emerging industries and future industries. China has sound foundations for the development of its digital economy, which is the second largest in the world. In addition, the sound prospects and huge market demand for digital industries will power the country’s efforts to build digital industry clusters with international competitiveness.
At present, most of the digital industry clusters around the world are located in the United States, China and Europe. Silicon Valley in San Francisco, the United States, is one of the biggest hi-tech clusters across the globe and the best-known digital industry cluster. Boston and New York also have well-developed digital industry clusters.
In China, digital industry clusters are mainly located in the eastern coastal areas, especially in the Beijing-Tianjin-Hebei region, which focuses on innovation in basic science and frontier digital fields; the Yangtze River Delta, which focuses on cross-region and industry-university-research integration; and the Guangdong-Hong Kong-Macao Greater Bay Area, which seeks international cooperation via sharing, innovation and opening up.
Building digital industry clusters is part of China’s continuing adaptation to the ongoing global scientific and technological revolution and will ensure it is well-placed to seize the opportunities presented by global digital economic development. It will also promote deep integration of China’s digital economy and real economy, and advance economic restructuring and transformation of economic growth patterns through technological innovation and industrial upgrading. Establishing the clusters will also help China optimize its regional industrial layout, make regional economic development more balanced and narrow the regional development gap.
Close cooperation and exchange among businesses within an industry cluster will accelerate technological innovation and the spread of knowledge, improving the overall ability to innovate. Economies of scale will be formed through agglomeration of enterprises within industry clusters, which will reduce production costs and promote coordinated development of the upstream and downstream of the industrial chain. The clusters will also facilitate the building of a resource-saving and environmentally friendly society, and boost sustainable development of the economy and society.
China’s digital industry needs to further improve its global competitiveness and influence, and it still faces a number of constraints in building internationally competitive digital industry clusters. For instance, some other countries set trade barriers by prohibiting or restricting the export of hi-tech chips to China, and some Chinese businesses or universities are still not investing enough in innovation. Multiple efforts are needed to address these problems, such as strengthening international cooperation and improving the policy and institutional environment to stimulate development of the digital industry. –The Daily Mail-Beijing Review news exchange item
