China's internet user base has soared past 1.1 billion as of December 2024, marking a significant milestone in the nation's digital landscape. This surge, an increase of 16 million from the previous year, underscores the immense potential of China's digital economy and its pivotal role in driving technological innovation.
According to a report by the China Internet Network Information Center (CNNIC), internet penetration in China reached 78.6% in 2024, three decades after the country was fully connected to the global internet. Today, China boasts the world's largest internet infrastructure, equipped with cutting-edge technologies that are propelling the rapid growth of its digital economy.
Online payment users in China have surpassed the 1 billion mark, while nearly 974 million residents have engaged in online shopping—a rise of 59.5 million from the previous year. The CNNIC report highlights that \"China continues to lead the world in both online retail sales and mobile payment penetration.\"
The National Bureau of Statistics data revealed that total online retail sales reached 15.52 trillion yuan (approximately $2.18 trillion) in 2024, a 7.2% increase from the previous year. Physical goods online sales rose by 6.5% to 13.08 trillion yuan, accounting for 26.8% of total consumer goods retail sales.
This steady growth is fueled by the rapid expansion of 5G and broadband coverage across both urban and rural areas. By November 2024, China had built 4.19 million 5G base stations, and gigabit broadband users reached 209 million. Stable internet connectivity has made online shopping more accessible to diverse demographics, including the elderly and rural populations.
Short video and livestream platforms have become major channels for online shopping, particularly among rural netizens. About 71% of short video and livestream viewers made purchases after watching, with more than half regularly tuning into live-stream sales.
The micro-drama sector, emerging from China's vibrant short video industry, has also flourished. As of December 2024, micro-dramas reached an audience of 662 million, encompassing nearly 60% of all internet users. This industry created around 647,000 jobs last year and is projected to surpass total box office revenue on the Chinese mainland for the first time in 2024.
Online tourism services have seen substantial growth as well, with 548 million users booking travel online—a 39.35 million increase from a year prior, representing 49.5% of the internet user base. The integration of the tourism industry with digital technologies has been a key driver of this expansion.
Artificial Intelligence (AI) technologies are at the forefront of these digital transformations. Widely used in online marketing, smart diagnostics, and customer service, AI is reshaping industrial manufacturing and economic growth in China. The report indicates that 23.5% of China's population is aware of generative AI products, with 249 million users leveraging AI primarily for answering questions and office assistance.
China's digital ecosystem continues to evolve, setting a benchmark for global digital economy growth and innovation.
Reference(s):
China's internet users surpass 1.1 billion, powering digital economy
cgtn.com
