China’s Digital Economy Grows 12.9% in First Quarter

Strong winds are propelling China’s digital sector forward. The first quarter saw revenue soar to 9.5 trillion yuan, a 12.9% increase over last year, according to the Ministry of Industry and Information Technology. This robust performance highlights accelerating AI integration and industrial upgrades.

Earnings hit 737.8 billion yuan, surging 23.6% year-on-year—outpacing prior periods by 16.6 points, thanks to electronic manufacturing gains. Internet platforms didn’t lag: businesses with 20 million+ yuan annual revenue reported 5.027 trillion yuan, up 10.6% with a 9.2-point growth boost.

Computing power ramped up significantly. End-March figures show 14.45 million standard racks operational nationwide, bolstered by more than 70 computing hubs and channels. These investments are laying the groundwork for advanced AI and data-driven innovations.

Leadership came from key regions: the top 10 provinces, including Guangdong, Jiangsu, Beijing, Shanghai, and Zhejiang, drove 89.1% of the revenue expansion. As digital technologies permeate every industry, China’s Q1 results forecast sustained leadership in the global digital arena.