China was overtaken by Taiwan in terms of e-commerce penetration rate. (Photo : Reuters)
Experts are expecting the Internet to play a vital role in remolding China’s economy as the country garnered approximately 668 million users by the end of June.
In 2014, total e-commerce transactions surged to 59.4 percent, gaining 16.39 trillion yuan ($2.58 trillion).according to a report by Shanghai Daily.
To sustain the trend, the State Council unveiled its action plan called "Internet Plus," which will bind information technology and traditionally disconnected sectors into a cohesive system starting in July.
The new initiative will also attempt to develop new engines for economic growth that will also upgrade economic structures, according to Lin Nianxiu, deputy head of the National Development and Reform Commission (NDRC).
For Lin, the integration of the two sectors is essential to address the problems of rising costs and overcapacity. Areas that are planned to be targeted by Internet Plus include manufacturing, modern agriculture, energy, finance, services, logistics and e-commerce.
China's Internet giant Baidu is one of the first companies who took advantage of the opportunities provided by the Internet. Zhao Cheng, editor-in-chief of Baidu, stated that since becoming a leader in the sector, they can process more orders quickly and make the transactions more convenient for clients.
Didi Kuaidi, a Chinese taxi-hailing service provider, has also made its mark through the Internet, utilizing mobile technology to its fullest extent.
"The Internet has made it easier for startups and slashed the costs associated with innovation," said Lin.
The NDRC will also reinforce policy support companies to participate in the Internet Plus program and collaborate with other government departments, the report added.
Huai Jinpeng, deputy head of the Ministry of Industry and Information Technology, said that companies should make good use of the Internet and look for opportunities from untapped areas. Furthermore, the ministry will help in continuing the improvement of Internet infrastructure and make broadband Internet accessible in every corner of China.
