According to a report released by the China Internet Network Information Center, China's Internet users reached 731 million as of December 2016, which is 42.99 million more compared to last year's. This is 6.2 percent higher year-over-year and accounted for 53.2 percent of China's total population.
The report also indicated that about 695 million netizens used their mobile phones to access the Internet in 2016, with a growth rate that exceeded 10 percent for the third straight year.
Smartphone-based Internet accounted for 95.1 percent of all Internet users, which is a 5 percent increase compared to 2015.
It is also reported that 201 million people of Internet users were from rural areas, which accounted to 27 percent of the total number of users.
Li Yi, a Shanghai-based independent IT expert, said: "The surge in the number of smartphones was the primary reason for the growth in Net users. Poverty has stunted further growth in Internet users, which has kept the net user population to around 50 percent."
The number of Internet users making payments through their smartphones was reported to reach 469 million last year, which is a 31.2 percent increase compared from the previous year.
The report indicated that searches, online payments and online music and videos were among the most popular mobile applications.
Despite the growth of numbers, the report said that most Internet users remain concerned about issues regarding cybersecurity. About 28 percent of the users said that they believe the Internet was safe, while more than 70 percent of which said they have experienced cybersecurity threats wherein Internet fraud is a main concern.
The Cyberspace Administration of China has released the first cyberspace security strategy last Dec. 2016. Its purpose is to prioritize the cyberspace sovereignty ahead of the implementation of the Cyber Security Law.
The strategy will enable the government to crack down on cyber terror and crimes as well as to protect key information infrastructure and national security. This will take effect in June 2017.
"More micro regulations will be formulated in 2017 after macro policies on cybersecurity were introduced last year," Li said. He also expects draft regulations on online shopping platforms, social media and personal information protection.