The development of information and communications technology (ICT), particularly the Internet, has reduced trade costs. However, it remains unclear whether these reduced costs are reflected in the “extensive margins” of firms' exports (which refer to the probability of firms exporting) or the “intensive margins” (which refer to the value of firms' export). To test this, we used the concepts of information cost and binary margins, an augmented trade model of firm heterogeneity, a two-stage Heckman estimation, and data from the World Bank Enterprise Survey of Chinese firms in 2012. The results revealed that reduced trade costs from the use of ICT were positively related to extensive margins but that the connection with intensive margins was not significant. The results lead to the conclusion that reduced information costs related to a firm's exporting behavior were primarily reflected in variable trade costs. This study offers theoretical and empirical evidence for China's policies towards the Internet, which are relevant for the export of manufactured goods. The government should encourage the use of ICT to enhance firms' export opportunities while facing current trade policy uncertainty.

This paper uses the dramatic expansion of access to the Internet in China to analyze the impact of the Internet on firm performance. The paper combines firm-level production data with province-level information on Internet penetration to examine how the rollout of the Internet across Chinese provinces between 1999 and 2007 influenced firms' export behavior. The econometric strategy enables identifying the impact of the Internet on firm performance in China. The paper shows that the rollout of the Internet boosted manufacturing exports of firms in China, even before the rise of major e-commerce platforms in the country such as Alibaba. The paper takes a closer look at why, focusing on three questions: what aspects of firm performance were affected, what types of firm communication were facilitated, and what dimensions of the new communication medium were relevant? The paper finds that the Internet not only enhanced trade, but also improved overall firm performance. The results are consistent with improvements in communication with buyers and input suppliers. The benefits arose not just from better communication, but from establishing a visible virtual presence, and were enhanced by, but not contingent on, access to broadband.

China’s digital economy has expanded rapidly in recent years. While average digitalization of the economy remains lower than in advanced economies, digitalization is already high in certain regions and sectors, in particular e-commerce and fintech, and costal regions. Such transformation has boosted productivity growth, with varying impact on employment across sectors. Going forward, digitalization will continue to reshape the Chinese economy by improving efficiency, softening though not reversing, the downward trend of potential growth as the economy matures. The government should play a vital role in maximizing the benefits of digitalization while minimizing related risks, such as potential labor disruption, privacy infringement, emerging oligopolies, and financial risks.

Based on data from the Chinese Industrial Enterprises Database, this paper investigates the effect of "Internet Plus" on the trade destination mix at the enterprise level. The analysis extends the classic dual margins to three dimensions: destination extensive, destination intensive and destination structural margins. The paper suggests that connecting to the internet not only raises Chinese firms' propensity to export, but also extends the destination extensive margin. In addition, Internet Plus could create a synergistic effect for internet-enabled enterprises, that is, the development of the destination country's internet access benefits domestic firms' export participation. Finally, the paper finds that Internet Plus, rather than increasing the intensive or structural margins, leads to the transfer of exports to lower-middle-income countries and helps firms achieve competitiveness and thus increases their profit. The paper provides an explanatory mechanism and empirical evidence for firms' use of the internet to optimize export space.

This book considers the Chinese internet as an ensemble of ideas, ownership, policies, laws, and interests that intersect with pre-existing global elements and, increasingly, with deepening globalizing imperatives. It extends traditional inquiry about digital China and globalization and encourages closer attention to contestation, shifting international order, transformation of states, and new requirements of global digital capitalism. Across the three foci of history, power, and governance, this book considers the ways the Chinese internet is entangled with transnational capitals, ideas, and institutions, while at the same time manifests a strong globalizing drive. It begins with a historical political economy approach that emphasizes the dialectics between structural imperatives and historical contingency. As for governance, the Chinese state has set out to re-regulate the internet as the network becomes ubiquitous during the nation’s web-oriented digital transformation. Such a state-centric governance model, however, is likely to affect China’s global expansion, apart from the fact that the state is taking an active interest in global internet governance. This book will be of interest to researchers and advanced students of Communication Studies, Politics, Sociology, Economics, Cultural Studies, and Science and Technology Studies. The chapters in this book were originally published as a special issue of the Chinese Journal of Communication.

The New Economy has hit China, driven by the Internet and e-commerce. China has made a good start in both areas. Since its debut, subscribers to the Internet grew exponentially from a mere 1,600 in 1994 to 16.9 million in mid-2000. E-commerce transactions registered a total revenue of 200 million yuan in 1999, or twice as much as in 1998. B2C e-commerce is expected to grow by 300% in 2000. However, the rapid growth of the sectors is constrained by factors such as a small base of registered users, high costs of using the Internet, government control of information access, and lack of an effective distribution network and financial linkage. Internet businesses are also losing money due to exorbitant charges for telephone lines, an uncertain regulatory environment, and direct competition from the telecommunications operators dominating the market. Nonetheless, the high growth potential of the two sectors is still well recognized by foreign multinationals. Despite China's manifest prohibition of foreign involvement, foreign companies have managed to enter the Chinese market by forming strategic alliances with domestic concerns. It appears that China prefers a smooth and orderly process of market opening based on a more effective regulatory regime such as licensing arrangements.This book is intended for readers interested in China's Internet and e-commerce sectors. Businessmen, corporate planners, business associates, researchers, engineers, technologists, academics and students interested in these industries will find the book useful. Focusing on China's nascent Internet and e-commerce industries, this book presents the historical development, current market status and future growth, as well as discusses the problems and issues facing the two sectors.

China’s Digital Presence in the Asia-Pacific explores China’s digital presence in the Asia-Pacific region. Drawing on political economy of the media, industry analysis, platform studies and cultural policy studies, the book shows that China’s commercial digital platforms are increasingly recognized outside China and can disseminate Chinese culture more effectively than government supported media. It illustrates how these platforms are contributing to Chinese cultural influence, their perceived reputation and obstacles in the region while pursuing a combined approach of culture+, industry+, internet+, and platform+. In considering the multi-layered rise of the China argument, the book considers its growing technological status as an innovative nation through four policy approaches: culture+, industry+, Internet+ and platform+. Other + characterizations include intelligent+ and social+. These + characterizations show how China is rejuvenating, drawing technological knowhow from the region and adding to its cultural (and soft) power. The book focuses on six locations: Hong Kong, Taiwan, Singapore, Malaysia, Australia and New Zealand. The authors analyse Beijing’s changing policies towards the governance of culture, Internet technologies and digital platforms, as well as examining consumer perceptions of China and Chinese products in the Asia-Pacific region. In using the + characterizations, the authors provide a comprehensive analysis of how Chinese cultural and creative industries became digital, as well as investigating the key players and the leading platforms including Alibaba, Tencent, ByteDance, TikTok, Baidu, iQiyi and Meituan.