The development of the digital economy and digital trade will be critical to China's modernization drive, said scholars and officials at a forum held in Hangzhou, East China's Zhejiang province on Nov 27.

"They are transforming ways of production, life, trade and governance, and reorganizing global resources, economic structure and patterns of international competition," said Cheng Huifang, a professor from the Zhejiang University of Technology, in her keynote speech at the Forum on China's Digital Economy and Rules of Global Economy and Trade.

For China, the coordinated development of the digital economy and digital trade will play a significant role in the country's high-quality development, added Cheng, who also serves as director of the Institute for China Digital Economy and Rules of Global Economy and Trade.

Cheng Huifang, a professor from the Zhejiang University of Technology, delivers a speech during the Forum on China's Digital Economy and Rules of Global Economy and Trade in Hangzhou, Zhejiang province on Nov 27. [Photo provided to ezhejiang.gov.cn]

Official figures show that China's digital economy grew from 27 trillion yuan ($3.75 trillion) to 45.5 trillion yuan from 2017 to 2021, ranking second in the world. The share of digital economy in its GDP increased to 39.8 percent during the same period.

Digital economy refers to a broad range of economic activities that use digitized information and knowledge as key factors in production, according to the G20 Digital Economy Development and Cooperation Initiative, which was released in the 2016 G20 summit in Hangzhou.

The rapid growth of the digital economy in places like Zhejiang province, which is home to China's leading e-commerce and internet companies, has contributed greatly in the process, according to Zhang Qianjiang, deputy director of Zhejiang Provincial Department of Commerce.

In 2003, the idea of "Digital Zhejiang" was proposed. In 2017, the Zhejiang authorities made developing the digital economy a top priority and launched its digital reform in 2021, investing 149.55 billion yuan in digital economy projects.

The added value of Zhejiang's digital economy last year was worth 3.6 trillion yuan, the fourth highest in China. Its industrial digitalization index was the highest in the country, according to the Digital China Development Report (2020).

Tian Ning, chairman and CEO of Panshi Group, speaks during the Forum on China's Digital Economy and Rules of Global Economy and Trade in Hangzhou, Zhejiang province on Nov 27. [Photo provided to ezhejiang.gov.cn]

The foundation of the digital economy, industrial digitalization and digital industrialization are the "twin paths" for Zhejiang's fast-growing digital economy, explained Tian Ning, chairman and CEO of Panshi Group, which specializes in providing global digital economic platforms.

"Industrial digitalization helps businesses and governments achieve digital transformation, while digital industrialization enables many places to move away from traditional development and realize economic catch-up," said Tian, who is also the deputy director of the Institute for China Digital Economy and Rules of Global Economy and Trade.