Digital Economy Empowers Common Prosperity

Challenges in the Process of Digital Economy Empowering Common Prosperity

  1. Challenges of Data Security and Privacy The digital economy relies on the collection and processing of big data, making network security and data privacy crucial challenges. Actions such as price discrimination and illegal usage are on the rise, potentially hindering the development of the digital economy. Additionally, concerns over data privacy, especially cross-border data breaches, pose significant threats to national security.
  2. Imbalanced development of digital economy between regions.

Due to factors such as the level of economic development, infrastructure construction, and digital resource endowment, there exist differences in the ability of some regions and populations to use and access digital technology. This uneven spread and development of the digital economy hinders the ability to enjoy the benefits of digitization, leading to the widening of the “digital divide” and further increasing the economic development gap between different areas.

  1. Polarization of economic growth in enterprises.

The digital economy may lead to the widening of advantages for large enterprises with existing resource advantages in terms of resource acquisition and other aspects, as they rely on massive data, algorithm technologies, and other means to gain dominance, resulting in market monopolies. According to the Annual Report on Anti-Monopoly Enforcement in China (2022) released by the State Administration for Market Regulation on June 9, 2023, a total of 187 monopoly cases of various types were concluded in China in 2022 in accordance with the law, with a total fine amount of 784 million yuan. Among them, the fine amount from the internet industry was 104.1 million yuan, including cases related to the abuse of market dominance and the abuse of administrative power to restrict competition.

  1. Traditional industries are facing the challenge of transformation in their working models.

The rise of the digital economy has changed the employment structure of many businesses. Many jobs have been replaced by automation or machines, which may lead to issues such as structural unemployment among low-skilled workers and present significant challenges to the labor market. At the same time, there is still untapped potential in the digital economy to address employment issues and drive the transformation of new professions, positions, and business models.

“How to harness the digital economy to promote shared prosperity?”

  1. Strengthen institutional construction to safeguard the healthy and secure development of the digital economy.

At the national level, it is necessary to improve relevant laws and regulations concerning the digital economy, particularly in areas such as data ownership and data security. Additionally, it is important to enhance cooperation with other countries, learning from each other’s strengths and helping one another, in order to establish digital economic trade rules, achieve connectivity, and work together for development. At the enterprise level, it is crucial to use digital resources responsibly, especially for companies with a high endowment of digital resources and a strong digital economy, in order to avoid monopolistic practices resulting from unchecked expansion of capital power. At the individual level, fostering a risk prevention mindset is necessary to consciously safeguard one’s own digital economic security as well as that of the nation.

  1. Bridge the digital divide and share the benefits of the digital economy.

At the national level, improve digital infrastructure construction, reduce barriers to data sharing and circulation, and enhance the level of management services. At the enterprise level, establish a concept of technology for the greater good, actively fulfill corporate social responsibilities, and focus on how to enable more people to benefit from the development dividends of the digital economy. Implement a combination of development and assistance, poverty alleviation and intelligence promotion, and promote the realization of shared prosperity. At the individual level, actively support vulnerable groups in the digital economy, such as the elderly, so that they can better enjoy the convenience brought by the digital economy.

  1. Enhance one’s digital capabilities and actively embrace the digital economy.

At the national level, improve the digital skills training system, enhance the digital literacy and skills of the entire population, and thereby increase the sense of achievement, happiness, and security in the digital economy. At the enterprise level, for companies with insufficient technological accumulation and innovation drive in the digital economy, they should reduce resistance towards new technologies, understand the requirements of the era’s development, and have the courage to face the transitional challenges brought by the digital economy. At the individual level, it is important to strengthen resource reserves, actively participate in skills training, continuously enhance one’s digital capabilities, and adapt to the requirements of digital economic development.

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