By Ma Yuan, Yuan Dongming & Ma Jun, Research Team on “Reshape the Institutional Arrangements for Digital Transformation by Making the Best use of the Strategic Opportunity”, Enterprise Research Institute, DRC

Research Report, Special Issue, No.58, 2019 (Total 1686) 2019-8-7

Abstract: Digital transformation is an all-round overhaul for reshaping the productive factor resources, corporate entities, industrial system, business model, international trade and market rules, bringing a golden opportunity to economic and social development. In face of the surging digital transformation, China has accelerated the building of cutting-edge network infrastructure in recent years, promoted the deep integration between the new-generation information technology and the real economy, implemented inclusively prudent supervision and boosted the vigorous development of the digital economy. At the same time, we need to note that China’s digital transformation is still facing some challenges. For instance, the core technology has a heavy dependency on foreign countries, the digital gap remains to be narrowed, the issue of post replacement and the lack of personnel with ICT knowledge exist side by side, and the institutional arrangements, in particular, in line with digital transformation are not yet in place. In order to meet the needs of economic and social development in the next five to ten years, a national strategy for digital transformation needs to be formulated. Digital infrastructure needs to be built in advance, the fundamental industries of the digital economy need to be strengthened, the transformation of digital education and skill training need to be accelerated and more inclusive regulatory measures need to be implemented. Besides, the tax system, statistical system and economic and trade rules for the transition to the digital economy need to be improved, the relevant systems for data governance need to be formulated, and a solid institutional foundation need to be consolidated for digital transformation.

Key words: digital transformation, reshape the institutional arrangements, strategic opportunity