The ever-expanding app-based services are part of the thriving new Chinese economy
There are products that are at the basis of the history of classical economics, such as food. In a residential community in Beijing, in the western suburbs, several vendors are promoting their new services: with a click on the app, fresh food orders are delivered in just 30 minutes from a nearby warehouse.
To bring this novelty is Meituan Dianping, which offers a fresh food delivery service. Making this service possible is the online food delivery service platform. These services are constantly expanding and are based on apps that are part of the thriving new Chinese economy, which presents new industries and new forms and business models that have become new growth drivers.
The new growth drivers contributed 16.1% to the country’s GDP in 2018
This new economy, as shown by data from the National Statistics Office, contributed 16.1% to the country’s GDP last year, an increase of 0.3 percentage points over the previous year. Data grew 12.2% to 14.54 trillion yuan (about $ 2.11 trillion) in 2018, 2.5 percentage points higher than GDP growth.
Lai Youwei, head of the Meituan Research Institute, has highlighted economic advantages over the Internet and digital services. Industrial data showed that China had around 829 million Internet users by the end of 2018, with a penetration rate of 59.6%.
The economic environment will be further optimized in the near future
Market players in the new economy are growing rapidly. The latest list of Fortune China 500 showed that revenue from the new economy sector, including electronics and Internet services, increased by 29% compared to last year, exceeding the average growth of listed companies.
The reading of the Mastercard Caixin BBD New Economy Index, which tracks the activities of over 140 emerging sectors, rose to 30% in June thanks to the increase in capital inputs, up 2 percentage points from May, the maximum since December 2018.
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