By December 2024, the number of internet users in China reached 1.1 billion, marking an increase of 16 million from the previous year, according to a report on China’s internet development released on Friday.
This milestone underscores the immense potential of China’s digital economy and its pivotal role in advancing technological innovation.
The report from the China Internet Network Information Center (CNNIC) highlighted that China’s internet penetration rate reached 78.6 percent in 2024, exactly 30 years since the nation first connected to the global internet.
With the world’s most extensive internet infrastructure powered by cutting-edge technologies, China has significantly fueled the rapid expansion of its digital economy.
As of late 2024, over 1 billion Chinese users engaged in online payments, while 974 million people shopped online—a growth of 59.5 million compared to 2023.
The report emphasized China’s global leadership in online retail and mobile payment adoption.
Data from China’s National Bureau of Statistics showed total online retail sales reached 15.52 trillion yuan ($2.18 trillion) in 2024, representing a 7.2 percent increase from the previous year. Sales of physical goods rose 6.5 percent year-on-year to 13.08 trillion yuan, making up 26.8 percent of overall consumer retail sales.
The rapid growth of China’s online retail sector is attributed to widespread 5G and broadband access across urban and rural areas. By November 2024, China had constructed 4.19 million 5G base stations and registered 209 million gigabit broadband users.
Enhanced internet connectivity has encouraged online shopping among diverse groups, including seniors and rural residents. Approximately 70 percent of internet users aged 60 and above and over 76 percent of rural users now shop online, according to CNNIC.
Short video and livestream platforms have become crucial for online shopping, particularly in rural areas. Nearly 71 percent of short video and livestream viewers have made purchases, with over half being frequent live-stream sale participants.
China’s thriving short video industry has also driven the growth of micro-dramas—brief, engaging video series.
By December 2024, the micro-drama audience in China grew to 662 million, making up nearly 60 percent of all internet users.
The micro-drama sector generated around 647,000 direct and indirect jobs last year, with its market size expected to surpass the total box office revenue in mainland China for the first time in 2024, according to the China Netcasting Services Association.
Online tourism services, a key part of China’s recovering tourism sector, saw significant growth, driven by digitalization.
As of December 2024, 548 million users booked travel online, up by 39.35 million from the prior year, representing 49.5 percent of all internet users.
AI technologies have been transformative in online marketing, smart diagnostics, customer service, and other fields, driving significant advancements in industrial production and economic growth in China.
The report revealed that 331 million people, or 23.5 percent of the population, are aware of generative AI products, while 249 million people have used them, primarily for answering questions and office tasks.
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