China’s digital industries revenue grew by 8.2% year-on-year in the first two months of 2025, according to the Ministry of Industry and Information Technology (MIIT). This growth is attributed to advancements in 5G technology and generative artificial intelligence.

At a press briefing on Friday, MIIT chief engineer Xie Shaofeng stated that 5G and large AI models are accelerating digital transformation nationwide.

As of March, China had installed 4.395 million 5G base stations. This has resulted in a 5G user penetration rate of 75.9%. Additionally, the number of gigabit broadband users increased to 218 million. The country also expanded its fiber infrastructure, with 10G PON ports reaching 29.25 million.

Xie emphasized that this expanding digital infrastructure supports innovation in artificial intelligence, the industrial internet, and cloud-based services.

🔗 Source: China.com.cn

🧠 Food for thought

1️⃣ China’s digital infrastructure investment follows a decade-long strategic roadmap

The current 8.2% growth in digital industries and 4.395 million 5G base stations reflect China’s long-term digital economy strategy that began years ago.

China has evolved from representing less than 1% of global e-commerce transactions a decade ago to now accounting for over 40% of worldwide e-commerce activity 1.

This digital infrastructure expansion is deliberately designed to support future economic growth, with the GSMA forecasting that mobile technologies and digital transformation will contribute approximately $2 trillion (8.3% of GDP) to China’s economy by 2030 2.

The manufacturing sector is expected to be the primary beneficiary, accounting for 40% of this projected economic impact as factories increasingly integrate digital technologies 2.

This strategic investment in connectivity aligns with China’s Next Generation AI Development Plan, which aims to position the country as a global AI hub by 2030 through systematic infrastructure development 3.

2️⃣ From payment dominance to AI innovation: China’s evolving digital ecosystem

China’s digital economy has evolved from consumer-focused payment systems to more sophisticated AI and industrial applications, showing a clear developmental progression.

China’s mobile payment market grew to become 11 times larger than the US by transaction value 1, 4, with companies like Alipay growing from 100 million users in 2008 to 700 million users by 2019 5.

This payment infrastructure created a foundation for broader digital adoption, with cashless transactions accounting for one-third of consumer payments by 2017 5.

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