China, already a global force in digital technologies and McKinsey Global forecasts big shifts in revenue and profits as China’s businesses digitize, boosting the economy’s international competitiveness.
The next wave of digital transformation in China is likely to come from broader adoption of digital technologies by businesses in different sectors that will restructure value chains and boost productivity.
Overall, digitization of industries in China still lags behind that of the United States by a considerable margin, but that gap is narrowing rapidly. In 2013, the United States was 4.9 times more digitized than China; in 2016, that figure had fallen to 3.7 times.
China has opportunities for big productivity gains from digitizing old industries like healthcare, automotive and logistics.