Digital Transformation: Reshaping China’s Development Landscape

Zheng Jianghuai1*, Zhang Rui1 and Chen Yingwu2

1Yangtze River Delta Economics and Social Development Research Center of Nanjing University; School of Economics, Nanjing University, Nanjing, China

2Jiangsu Institute of Economics and Information Technology, Nanjing, China

Abstract: The Chinese economy is currently undergoing a digital transformation. New growth drivers are replacing old ones, creating a new development landscape. Countries with strong digital industries will be the first to reap the benefits of digitalization. For China, the transformation to a digital economy is both of inevitability and heterogeneity fueled by dual circulations. Crowded out from more skill-based digitalized sectors, less-skilled labor moves to less digitalized sectors. New capital, industries and technology clusters emerge as new drivers of manufacturing and service sector development. With its large domestic market and industrial competitiveness, China has fostered a new development landscape of “dual circulations”.Keywords : d ig i ta l t ran s fo rma t ion , sh i f t f rom o ld to n ew g row th d r i v e r s , “dua l circulations” development landscape, re-industrialization of output value, service-based employmentJEL Classification Code: O33DOI: 10.19602/j.chinaeconomist.2021.05.01

JEL Classification Code: O33

DOI: 10.19602/j.chinaeconomist.2021.05.01