Chongqing’s Digital Economy Has Come out Top in China

During the 13th Five-Year period (2016-2020), Chongqing has focused on high-quality, supply-side and intelligent development to vigorously develop special competitive industrial clusters, modern service industry, and modern characteristic efficient mountainous agriculture, and to build a modern industrial system with efficient division of labor, unique development modes, orderly competition, and mutual integration.

The Chongqing Blockchain Digital Economy Demonstration Industrial Park.

With the construction of the National Pilot Zone for Digital Economy Innovation and Development and the National Pilot Zone for New-Generation AI Innovation and Development as key factors, Chongqing has pooled its strength for building a strategic center of smart manufacturing and a famous smart city.

Chongqing is striving for advantages of the industrial chain of "chips, LCD panels, intelligent terminals, core components, and Internet of Things (IoT)." In 2019, the city's digital industry's added value reached 160.5 billion yuan (about 24.6 billion U.S. dollars), up 16.8%. Among them, the digital manufacturing industry and the digital service industry accounted for 67.3% and 32.7%, an increase of 17.2% and 16%, respectively. The added value of the IoT, big data, digital content, and intelligent hardware reached 10.4 billion yuan, 10.85 billion yuan, 16.65 billion yuan, and 23.41 billion yuan, respectively. Chongqing is also accelerating the digitization of industries, building a cluster of all elements including cloud platforms, networks, big data, computation and application scenarios, implementing a campaign of "migration to the cloud, data utilization, and artificial intelligence (AI) application," and strengthening the wide application of big data, AI, blockchain and other digital technologies in traditional industries.

In 2019, the city's industrial digital integration rate reached 16.5%, and the value-added of industry digitization was 364.5 billion yuan, an increase of 15.5%, accounting for 69.4% of the city's digital economy value-added, contributing 67.8% to the growth of the digital economy. The development of Chongqing's digital economy has been ranked among the best in the country, with the value-added of the digital economy reaching 525 billion yuan in 2019, up 15.9%, and 275.45 billion yuan in the first half of 2020, a rise of 15.6%.

In addition, the city has formulated and implemented special plans for the IoT, biomedicine, robots, and intelligent equipment, and introduced policies and measures to promote the development of the industrial internet and support the application of new energy vehicles, fostering the formation of a batch of strategic emerging industrial clusters.

In the past three years, the average growth rate of the value-added of the city's strategic emerging industries exceeded 17%, and the proportion of the value-added of industries above designated size increased from 23.9% in 2017 to 31.4% in 2019. In the first half of this year, the city's strategic emerging industries' added value rose by 7.7%.

As a next step, Chongqing will focus on improving its industrial innovation capacity. It's slated to put effort into the frontier areas of the new round of scientific and technological revolution such as big data, new-generation AI, life sciences, space, and oceans, and strive to make some significant original achievements in the frontier areas leading the future development of the manufacturing industry.

What's more, the city will vigorously develop the digital economy to help it form a scale of one trillion yuan by 2022 and make it account for more than 40% of the city's GDP and contribute more than 60% of the city's GDP growth.