Dalian releases action plan to promote development of digital economy

An action plan for Dalian to promote the development of the digital economy was released recently by the CPC Dalian Municipal Committee and the local government. The plan clarifies the city's goals, key tasks and measures to support the development of the digital economy.

One hub and three highlands

Under the action plan, Dalian will position itself as "one hub and three highlands"–one hub stands for its goal to become a major data hub in the country, and three highlands refer to the goal of developing into a nationally renowned digital technology innovation center, a national first-class digital industry development zone, and a national leading digital economy integration application zone.

To achieve the objectives, by the end of 2020, it aims to accelerate the construction of new digital infrastructure, implement digital industrialization, promote the transformation and upgrading of digital industries in key fields, to further improve its digital governance, make progress in the integration of digital technologies and traditional industries.

Looking into the year of 2025, it will build a digital economic ecosystem, and become the pioneer leading the digital economy development in Northeast Asia. With the purpose of taking the leading place in national construction of new digital infrastructure, the action plan also aims to promote the continuous improvement of real economy benefits, see growth in the motivation and competitiveness of its economy, and achieve an average annual growth of over 10 percent in the added value of core industries in the digital economy.

Digital economy plays an increasingly important role in overall economy

The release of the action plan is a significant measure to implement the national strategy for digital economy development. The central government and the State Council have attached great importance to the development of digital economy. A series of policies have been issued recently to stimulate social creativity and market vitality, speed up the replacement of old growth drivers with new ones, and support the development of the digital economy.

The digital economy has become an important engine for China's new round of economy development. Based on the actual situation in Dalian, the release of the action plan demonstrates the great importance that the local government attaches to the development of the digital economy.

The release of the action plan is an objective requirement to enhance the importance of digital economy in the city's future economic development.

The digital economy occupies an increasingly important place in Dalian. Relying on its good development basis and rapid growth, its core industries realized added value of 71.26 billion yuan ($10.06 billion) in 2019, accounting for 10.2 percent of the city's GDP, with a growth rate of over 20 percent. In the next three to five years, it is expected that the core industries in the digital economy will continue to develop vigorously, making the digital industry a pillar in Dalian's economy that drives related industries.

It also shows the city’s determination to promote economic transformation and replace old growth drivers with new ones. Forming a new driving force through advancing all-round digital transformation and accelerating development of new technologies, new industries and new modes is of great significance to the city's development. The digital industry continues to grow in the city with a large number of new products and services emerging from the accelerated popularization and application of digital and information technologies. Driven by innovation and data, the industry helps high-quality local development.

Data is already the key of economic development. With new technologies including Internet Plus, Big Data Plus, Artificial Intelligence Plus, the development of the digital economy will benefit such industries as agriculture, manufacturing, healthcare, education, tourism and culture, logistics, transportation, green energy and environment protection. The deep integration of big data in all walks of life will improve productivity in the city and have positive effects on local economic development.

In the future, changes will be brought on all sides to reshape business models, optimize production processes and industrial structures, and transform people's work and lifestyles.

The release of the action plan also meets the urgent needs of the local software industry. Dalian has been awarded as a national software industry base, a software export base, a pilot city of the internationalization of the software industry, and an innovative software industry cluster, and the output value of its software industry has already grown to 100 billion yuan annually. As of the end of 2019, it is reported to have had more than 10,000 enterprises engaged in software and information services, including 198 above designated size. The further development of the software and information service industry will play a vital role in enhancing the city's innovation capability, upgrading its industrial structure, and enhancing its overall competitiveness. Giving full play to its industrial advantages, Dalian should be able to create a good development environment to stimulate enterprise vitality and creativity and accelerate the transformation from providing middleware products to terminal products and from providing software development service to platform service. The city will devote greater efforts in research and development of digital technologies in information, AI and blockchain fields.

22 key tasks to speed up digital economic development

Combining its software and information advantages, and balancing the electronic information manufacturing and traditional manufacturing industries, the action plan sets out 22 main tasks in different areas.

It will speed up construction of new digital infrastructure and improve network infrastructure. It will also promote 5G commercial layout to achieve full 5G coverage in urban areas and provide on-demand application scenarios. Both urban and rural areas will be fully covered with a fiber-optic network. It will push forward the construction of a new data center, an internet data center, and a cloud center for enterprises and will explore setting up an offshore data center. In order to further facilitate intelligent infrastructure development, it will enhance digital perception and pay more attention to connecting facilities with applications of internet of things including 4G, 5G and optical fiber networks.

In 2020, it aims to rank first among cities in Northeast China for 5G investment and base station construction.

Dalian will also focus on enhancement of innovation capabilities in core digital technology through strong supporting research and developing technologies on blockchains, advanced computers, intelligent manufacturing and new generation network security.

The action plan emphasizes improvement of the basic strength of the city’s digital industry. It requires accelerating high-end development of the software industry and improving independent innovation to reinforce its core competitiveness. Other industries of great interest include integrated circuits, high-end intelligent equipment, AI, big data, internet platforms and advanced electronic information manufacturing.

Another aspect stressed in the action plan is to steadily carry out the upgrading of industrial digitization and to vigorously develop the industrial internet. Dalian will develop an industrial internet platform with industrial and regional competitiveness and encourage SMEs to use cloud management service. A new model of modern agricultural development will be formed as Dalian upgrades agricultural digitization and supports the development of smart tourism, smart logistics and smart marine industries.

The city will accelerate construction of 'Digital Dalian', an all-for-one digital governance platform that closely integrates digital technologies with government service and management. The “Internet Plus Government Affairs” online platform will enable people to handle affairs with their smart phones. With the purpose of building a smart city, it will strengthen the construction of new digital infrastructure to promote digitization in various fields such as healthcare, education, and pensions.

According to the action plan, Dalian will implement a number of leading, supportive and applicable digital economy projects every year, which will strongly support its innovation-driven development strategy, accelerate the upgrading of traditional industries, expand development advantages, and promote its high-quality economic development.