Fast Expansion Of Internet Service Sector Of China In 2018

China’s the Ministry of Industry and Information Technology (MIIT) has claimed that there was significant growth in the e-commerce and online gaming industry in the country even as the entire of the internet service and related sectors also expanded better than expected for entire of 2018.

The ministry said that there was a 20.3 per cent year on year increase in the total revenues of the sector in 2018 which came at 956.2 billion yuan or about 142 billion U.S. dollars.

In terms of generating revenues from internet services, the top three cities in China were Guangdong, Shanghai and Beijing, with growth rates of 26.5 per cent, 20 per cent and 25.2 per cent respectively.

There was also a 19 per cent year on year rise in the spending on research and development in the sector which touched a total of 49 billion yuan.

With a generated revenue of 859.4 billion yuan, the most successful segment of the sector was the information services segment as it noted a year on year increase of 20.7 per cent,. The revenues from this segment accounted for almost 90 per cent of the total revenues generated by the entire sector.

There was a 17.8 per cent increase in the revenues from the online gaming segment of the sector with revenues of 194.8 billion yuan while the revenues from the e-commerce platforms noted a rise of 13.1 per cent with revenues touching 366.7 billion yuan.

In recent years, the Chinese economy has undergone a change in its character as the Chinese government and authorities are now focusing on generating growth through more of technology and consumption instead of through exports. In that respect the internet sector has assumed a very significant importance in the “new economy” of the country.

For example, there was strong growth in the internet data center business in 2018. The sector saw a 31.8 per cent year on year increase in the number of servers installed by the end of December – which was 1.41 million. This segment also noted a rise of 8 per cent year on year growth in the revenues for 2018 at 15.8 billion yuan in aggregate.

In 2018, the industry added about 420,000 mobile applications which catapulted the total number of mobile applications to be about 4.49 million. Among this, the largest number was accounted for by the gaming applications with 1.38 million applications. Life services, e-commerce and theme wallpaper were the other top performers in terms of mobile applications with 542,000, 421,000 and 374,000 of them respectively.

There was also a 20 per cent increase in the number of financial applications compared to the number at the beginning of 2018, reaching 140,000. Among the most innovative mobile applications, social networking ruled the roost, as they came up with new applications to capture the imagination and interest of users and enriching the user’s experiences using short messages and short videos.

The most popular applications were gaming, system tools, audio-visual players, networking and communications applications, said the ministry.

(Adapted from XinhauNet.com)

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Categories: Economy & Finance, Regulations & Legal, Strategy, Sustainability, Uncategorized

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