China Ahead of Taiwan in Developing a Digital Economy

Published Date : Oct 21, 2015

Li Keqiang, the Chinese premier had announced its action plans, ‘Internet Plus’, in March, to integrate the country’s business with internet technology. Recently, Shanghai issued a license for China’s first online ride-hailing services to Didi Kuaidi. It displays China’s eagerness and willingness to grip technological innovations across the country. It also displays the country’s desire to replace U.S. control in the world of technology, as denoted by the evolution of smart devices launched by Apple in 2007. 

As experts forecast a slowdown in the development of hardware sales by 2016, ‘Internet Plus’ initiative from China is considered to be the country’s response to the fight in the fast developing digital economy. With introduction of ‘Internet Plus’ that focuses on relevant content and services, China is showing clear intension of achieving its objective of development in digital economy. The recent example being, the success of firms such as Tencent and Alibaba, Chinese government offering plenty of resources and funding, is a clear sign that China is willing to achieve its objectives soon. 

However, in Taiwan, the government has not disclosed any strong strategies for the development of digital economy. Despite Taiwan is one of the leading producers of tech products, the country is currently falling behind China in developing a digital economy. Amendments to Taiwan’s Cable Radio and Television Act, Radio and Television Act, and Satellite Broadcasting Act have been hampering the development of the telecommunication and wireless sector. China’s efficiency in effectively developing the digital economy is built on the basis of its strict government system. Government support for democracy in case of a weakened wealth of the people has further helped the country to stabilize the situations. Taiwan, in this context, is lagging behind in the competitive market. Lack of growth strategies from the Taiwan government is a serious issue for the country.