Abstract

• China’s digital economy has been developing by leaps and bounds to become an important growth driver. The 15th Five-Year Plan, which promotes the building of “digital China”[1] further sustains the growth of the digital economy and the high-quality development of the Chinese economy.
• The Chinese mainland has an advanced digital infrastructure. Its massive and mature network and user base creates a continuous demand for upgrades and generates important development opportunities. Hong Kong may leverage the territory’s international business environment to add value to mainland companies.
• Riding on the digital transformation of mainland industries, Hong Kong may help mainland companies market their advanced digital technologies and solutions to international users as they accelerate their global expansion.
• Measures to promote and expand data connectivity between the Chinese mainland and Hong Kong, including arrangements for co-operation in the Greater Bay Area, make it easier for Hong Kong’s technology and digital application enterprises to use valuable data resources and speed up their expansion and innovation on the mainland.

China’s digital infrastructure ranks among the best in the world, laying a solid foundation for the development of the digital economy. Its well‑established 5G network and data centres support industrial transformation in the mainland and generate demand for applications and upgrades.

The 15th Five-Year Plan upgrades the digital economy to the strategic development level with emphasis on building “digital China”, elevating digital and intelligent development, grasping the general trend of digitalisation, networking and intelligence, expanding AI+, and activating the potential of data elements. 

The development of the Chinese mainland’s digital economy will move from infrastructure construction to the application level. Given its international advantage and strengths in systems integration and application development, Hong Kong may collaborate with mainland partners in upgrading smart manufacturing, logistics, healthcare and other sectors through advanced technologies and expertise that align with international standards, helping to unlock the potential of the digital economy during the 15th Five-Year Plan period.

 In general, digital economy refers to a new economic form that takes big data and digital information as key production factors and optimises resource allocation. The digital economy has already experienced exponential growth on the mainland and has emerged as a vital engine for economic development.

In this context, digital industrialisation (economic entities including telecommunications, information technology, the internet and others), industrial digitalisation (artificial intelligence, internet of things and other technologies transforming traditional industries), digital governance (such as upgrading the efficiency of public services and social governance) and data valuation (including data transaction and data collection) are the four major productive forces for the development of the digital economy [2].

The Annual Report on China's Digital Economy Development (2025) published by the China Academy of Information and Communications Technology pointed out that China’s digital economy reached RMB59.2 trillion in 2024 with year‑on‑year growth of 9.7%. This is more than double the 2016 figure of RMB22.6 trillion and is expected to continue growing. The 15th Five-Year Plan aims to increase the value‑added of core digital economy industries from 10.5% of gross domestic product (GDP) in 2024 to 12.5% by 2030.

Guangdong province, whose digital economy has grown exceptionally, is implementing the plans with more targeted policies and measures to speed up the building of “Digital Guangdong” and inject new impetus into the digital economy integration of the Greater Bay Area.

New Infrastructure Boosts Cross-Border Co-operation

Ministry of Industry and Information Technology data shows that China had 4.838 million 5G base stations at the end of 2025, averaging 34.4 base stations per 10,000 people and supporting 1.2 billion 5G mobile subscribers. The number of internet users reached approximately 1.13 billion, with the internet penetration rate exceeding 80%.

This vast and mature 5G network is a solid pillar for the digital transformation of the mainland and creates massive applications and upgrades demand, bringing Hong Kong companies important development opportunities.

Hong Kong companies can accelerate the transformation of mainland enterprises in sectors such as smart manufacturing, smart logistics and smart healthcare by introducing AI system integration, application development and other internationally advanced technologies.

They may also use their expertise in fintech, supply chain management and international standards to offer mainland clients solutions for technical assessment, solution design and financing packages.

Helping Mainland Enterprises Go Global

The 15th Five-Year Plan promotes the integration of the real economy with the digital economy and implementing AI+ for scientific and technological innovation, industrial development, and cultural construction.

The digital transformation of traditional industries has already achieved remarkable results on the mainland. Up to December last year, 89.6% of industrial enterprises above a designated size have undergone digital transformation, with the rate reaching 94.4% and 94.2% in the key sectors of automobile and shipbuilding, and 93.9% in the electronic information manufacturing industry [4]. The introduction of smart production lines, industrial big data and supply chain collaboration systems in these sectors has improved productivity and product quality, reduced costs and shortened lead times, helping companies move up the value chain.

As mainland enterprises quicken digital transformation, their products and technologies are increasingly favoured by overseas markets. As an international financial and trading centre, Hong Kong is an ideal bridge for mainland digital enterprises to go global.

Specifically, Hong Kong companies can assist mainland enterprises in marketing their digital technologies and services overseas. Through Hong Kong’s well‑established international financing platform, they can provide cross‑border and supply chain finance, and other support for mainland digital projects venturing overseas, reducing the risk they face. Hong Kong may also assist mainland enterprises in handling overseas patents, technology licensing and other legal matters. 

Data Connectivity Reshapes Industrial Development

To enhance intelligent digital governance, the 15th Five-Year Plan proposes to improve the government’s integrated online service platform, promote cross‑departmental and cross‑regional sharing of data, and comprehensively improve the efficiency of public services.

Construction of the digital government on the mainland has reached a high level of maturity, with the National Integrated Government Service Platform boasting over 1 billion real‑name registered users. This makes it one of the largest government service platforms in the world. Local governments are also using AI and other digital and intelligent technologies to optimise administration. The wide application of intelligent examination and approval, AI administrative assistants and integrated city management has enhanced governance efficiency, benefiting citizens.

Cross‑border data flow between Guangdong and Hong Kong is deepening with the development of the Guangdong‑Hong Kong‑Macao Greater Bay Area. Data flow has grown through pilot measures such as the Standard Contract for Cross-boundary Flow of Personal Information Within the Guangdong-Hong Kong-Macao Greater Bay Area [5], the Shenzhen‑Hong Kong Cross‑Boundary Data Validation Platform and the secure cross‑border transmission of medical data in Qianhai. This has gradually extended to areas such as personal information, financial credit and healthcare.

If the Chinese mainland and Hong Kong can broaden data interconnectivity and dismantle more data barriers, Hong Kong companies looking to expand on the mainland market can access data with greater convenience. In frontier sectors such as the low altitude economy and robotics, Hong Kong companies can gain a competitive edge through cross‑border data collaboration. For example, developing the low‑altitude economy involves a vast amount of public data, such as real‑time traffic conditions, weather, and geographic information. Hong Kong companies will gain if they can acquire this data through compliant channels.

Insights for Hong Kong

Overall, the development of the digital economy will not just enlarge its market size but also reshape the global supply chain and industrial division of labour. This suggests that Hong Kong’s traditional role as a trading intermediary needs to become a high‑tier international platform for technological, data and financial services. If it achieves this, Hong Kong can further consolidate its strategic position in the global economy.

Related articles:
 

Capturing the 15th Five-Year Plan Opportunities
 

Hetao Co-operation Zone: Boosting Innovative Development
 

[1] For more details, please read Capturing the 15th Five-Year Plan Opportunities.

[2] Annual Report on China's Digital Economy Development (2025), China Academy of Information and Communications Technology.

[3] Guangdong’s 15th Five-Year Plan Released.

[4] Development Report on the Digital Transformation of the Manufacturing Industry (2025), China Academy of Information and Communications Technology

[5] Cross-Boundary Data Flow.