Since 2008, China’s digital economy has experienced years of booming development driven by the rapid evolution of mobile Internet technology, government-led investments, and digital-savvy consumers. According to the China Academy of Information and Communications Technology (CAICT), China’s digital economy grew at a compound annual growth rate of 20% from 2008 to 2019. This digital economy has become one of the largest in the world, hitting RMB 31 trillion and ranking second in the world in 2018.

Covid-19 caused digitalization to be taken up a notch in China. Bain’s latest study shows that Covid-19 has accelerated digitalization in China by driving the creation and adoption of digital applications in areas such as online shopping, online education, and remote working.