News Analysis: Internet technology reshapes China's economy

The Internet will play an increasingly important role in reshaping China's economy, as more people are online here than anywhere else in the world, experts said.

By the end of June 2015, China had 668 million Internet users, 48.8 percent of the population. Total e-commerce transaction volume in 2014 surged 59.4 percent to 16.39 trillion yuan (2.57 trillion U.S. dollars), nearing its goal of 18 trillion yuan by 2015.

China's cabinet unveiled its "Internet Plus" action plan at the beginning of July to mold information technology and traditional sectors into a cohesive, efficient force.

Lin Nianxiu, deputy head of the National Development and Reform Commission (NDRC), said at a conference here on Tuesday that China needs the integration as it will address the problems of rising costs and overcapacity.

Internet Plus will help cultivate new engines for economic growth and upgrade economic structure, Lin said.

The action plan identified areas that can benefit from Internet Plus, including manufacturing, modern agriculture, energy, finance, services, logistics and e-commerce.

Entering the food delivery business one year ago, China's Internet giant Baidu has been combining its cutting-edge technology with the catering sector.

Zhao Cheng, editor-in-chief of Baidu, said the company had become a leader in the sector as analyzed orders and matched the positions of customers with food delivery personnel.

With this technology, the company can process more orders, quicker, making the process more convenient for clients and making more profits for restaurants, Zhao said.

Chinese taxi-hailing and ride-on-demand provider Didi, a leader in the sector, also uses mobile and location technology.

"The Internet has made it easier for startups and slashed the costs associated with innovation," said Lin.

Lin urged companies to embrace the Internet for their management operations, too, as it would raise overall productivity.

The NDRC will reinforce policy support for companies to participate in the Internet Plus program and collaborate with other government departments to realize scientific decision making in promoting Internet Plus, Lin said.

Huai Jinpeng, deputy head of the Ministry of Industry and Information Technology (MIIT), said at the forum that companies should make good use of the Internet and look for opportunities from untapped areas.

The ministry will continue to improve Internet infrastructure and make broadband Internet accessible in every corner of China, according to Huai.

By the end of this year, the average broadband speed for users in major municipalities and provincial capitals will be increased to 20 megabytes per second (Mbps) from the current 9 Mbps, the MIIT announced earlier this year.

The ministry will press ahead with the overall implementation of the "Broadband China" strategy, which was floated in August 2013 by the State Council to boost information consumption and expand broadband coverage across the country. Endi