China's internet user base reached an impressive 1.1 billion by December 2024, marking a significant increase of 16 million from the previous year. This milestone underscores the immense potential of China's digital economy and its pivotal role in global technological innovation.
The China Internet Network Information Center (CNNIC) reports that internet penetration in the country hit 78.6%, three decades after its full connection to the global internet. China now boasts the world's largest internet infrastructure, equipped with advanced technologies that are propelling the rapid growth of its digital economy.
By the end of 2024, over 1 billion individuals were using online payment systems, and 974 million engaged in online shopping, reflecting a 59.5 million increase from the end of 2023. The report emphasizes China's leadership in online retail sales and mobile payment penetration.
In 2024, China's total online retail sales reached 15.52 trillion yuan (approximately $2.18 trillion), a 7.2% increase from the prior year. Online retail sales of physical goods rose by 6.5%, accounting for 26.8% of the total retail sales of consumer goods.
This growth is largely attributed to the rapid expansion of 5G and broadband coverage across urban and rural areas. By November 2024, China had established 4.19 million 5G base stations, with gigabit broadband users reaching 209 million. This stable connectivity has encouraged a diverse range of users, including the elderly and rural residents, to engage in online shopping.
Short video and livestream platforms have emerged as key drivers of online shopping, particularly among rural netizens. Approximately 71% of viewers of these platforms have made purchases after watching, with over half regularly participating in live-stream sales.
Additionally, the micro-drama sector, which consists of engaging short videos, has seen its audience swell to 662 million, nearly 60% of all internet users.
Online tourism services have also flourished, with 548 million users booking travel online, representing 49.5% of the total internet user base. This growth is fueled by the integration of the tourism sector with the digital economy.
AI technology continues to transform various industries in China, with 331 million people aware of generative AI products and 249 million actively using them for tasks such as answering questions and office assistance.