China is already more digitized than many observers appreciate. China is one of the world’s largest investors and adopters of digital technologies, and is home to one-third of the world’s unicorns. China has the scale to drive rapid commercialization of digital business models, and has the advantage of a very large home market of consumers who are young and eager to embrace digital in all its forms. Three aggressive, giant internet companies with global reach—Baidu, Alibaba, and Tencent, or BAT as they are collectively known—are creating a multifaceted and multi-industry digital ecosystem that touches every aspect of consumers’ lives. The government is actively encouraging digital innovation and entrepreneurship by giving companies room to experiment and offering support as an investor, developer, and consumer of new technologies. China’s digital transformation is already having a profound impact on its own economy, and is likely to have an increasing influence on the worldwide digital landscape. China’s digital globalization is only just getting started and is gathering momentum. Through mergers and acquisitions (M&A), investment, the export of new business models, and technology partnerships, China could set the world’s digital frontier in the coming decades.
Source : McKinsey Global Institute