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China’s post-pandemic economic recovery spurs growth across internet sector, boosting e-commerce, ride-hailing and online travel: report

  • China had 1.08 billion internet users as of June, an 11.09 million increase from December, to put its online penetration rate at 76.4 per cent
  • That growth was reflected in popular market segments such as ride-hailing services, which added 34.92 million new users in the first half of 2023

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The number of online shoppers in mainland China reached 884 million as of June, following the addition of 38.8 million new users in the first six months of the year. Photo: Agence France-Presse
Ben Jiangin Beijing
China’s post-pandemic economic recovery efforts in the first half of the year have helped ignite growth in the nation’s online population and across the entire internet market, including in e-commerce, online travel and ride-sharing services, according to the government’s latest industry survey.
The survey findings published on Monday by the China Internet Network Information Centre (CNNIC), an agency under the Cyberspace Administration of China, showed that the total number of internet users nationwide reached 1.08 billion as of June, an increase of 11.09 million from December last year, to put the nation’s online penetration rate at 76.4 per cent.

Online retail sales in the first six months of 2023 amounted to 7.16 trillion yuan (US$983 billion), up 13.1 per cent from the same period last year, according to the CNNIC, which has been conducting twice-a-year surveys of the domestic internet sector since 1997. The number of online shoppers nationwide reached 884 million as of June, following the addition of 38.8 million new users in the first half.

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During the same period, ride hailing and online travel were China’s two fastest-growing internet market segments in terms of user scale, according to the survey. Ride-hailing services added 34.92 million new users, while online travel saw a 30.91 million increase.

China’s e-commerce market saw total sales grow 13.1 per cent year on year to US$983 billion in the first half of 2023. Image: Shutterstock
China’s e-commerce market saw total sales grow 13.1 per cent year on year to US$983 billion in the first half of 2023. Image: Shutterstock
The latest industry survey, which marked China’s first report of key internet statistics since stringent Covid-19 restriction were lifted last December, showed the pent-up demand for services like ride hailing and online travel booking across the country after the pandemic.
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The CNNIC report highlighted the role of digital infrastructure development in the internet market’s growth. It credited the continued roll-out of mobile base stations for helping drive app usage across the country, which is the world’s largest smartphone market.
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