Chapter III – Development of Internet Applications in China
In 2024, the Internet, AI, and other digital technologies boosted the development of the digital economy, facilitating the deep integration of the real and digital economies on the foundation of the real economy. The application of the Internet in transport and telecommunications, business services, and cultural industries was deepening. New business forms and scenarios were emerging, laying a more solid foundation for the integration of the digital and real worlds.
Overall Internet Development In China
In 2024, the number of Internet applications increased, as did their user base. Online literature, online meal ordering, online payment, and online travel booking recorded the fastest growth in user base, increasing by 54.74 million, 47.77 million, 75.05 million, and 39.35 million from December 2023, with growth rates of 10.5%, 8.8%, 7.9%, and 7.7%, respectively.
Table 5 Chinese User Size and Utilisation Ratio of Internet Applications from Dec. 2023 to Dec. 2024
(Unit: 10,000 people; %)
| Applications | User scale by Dec. 2023 (10,000 people) | Percentage of Internet users using the application by Dec. 2023 (%) | User scale by Dec. 2024 (10,000 people) | Percentage of Internet users using the application by Dec. 2024 (%) | Growth rate (%) |
|---|---|---|---|---|---|
| Instant messaging | 105,963 | 97.0 | 108,133 | 97.6 | 2.0 |
| Online video33 | 106,671 | 97.7 | 107,018 | 96.6 | 0.3 |
| Short video | 105,330 | 96.4 | 103,953 | 93.8 | -1.3 |
| Online payment | 95,386 | 87.3 | 102,891 | 92.8 | 7.9 |
| Online shopping | 91,496 | 83.8 | 97,443 | 87.9 | 6.5 |
| Search engine | 82,670 | 75.7 | 87,782 | 79.2 | 6.2 |
| Live broadcasting | 81,566 | 74.7 | 83,303 | 75.2 | 2.1 |
| Online news | 77,191 | 70.7 | 81,100 | 73.2 | 5.1 |
| Online music | 71,464 | 65.4 | 74,795 | 67.5 | 4.7 |
| Online meal ordering | 54,454 | 49.9 | 59,231 | 53.4 | 8.8 |
| Online literature | 52,017 | 47.6 | 57,491 | 51.9 | 10.5 |
| Online office | 53,706 | 49.2 | 57,048 | 51.5 | 6.2 |
| Online travel booking | 50,901 | 46.6 | 54,836 | 49.5 | 7.7 |
| Online car-hailing services | 52,765 | 48.3 | 53,945 | 48.7 | 2.2 |
| Online medical services | 41,393 | 37.9 | 41,765 | 37.7 | 0.9 |
| Online audio | 33,189 | 30.4 | 33,529 | 30.3 | 1.0 |
Note: User scale refers to the number of users of each Internet application. Growth rate is calculated based on the user scale.
Source: Statistical Survey on China’s Internet Development, December 2024.
33 The user size of online video included micro-drama users by December 2024.
Basic Applications in China
As of December 2024, China had 1,081 million instant messaging users, an increase of 21.7 million from December 2023, accounting for 97.6% of all internet users.
Figure 21 User Size and Utilisation Ratio of Instant Messaging from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 people). Right axis: Utilisation ratio (% of Internet users using instant messaging).
Source: Statistical Survey on China’s Internet Development, December 2024.
As of December 2024, the number of search engine users reached 878 million, an increase of 51.12 million from December 2023, accounting for 79.2% of the total.
Figure 22 User Size and Utilisation Ratio of Search Engine from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 people). Right axis: Utilisation ratio (% of Internet users using search engines).
Source: Statistical Survey on China’s Internet Development, December 2024.
As of December 2024, China had 570 million online office users, an increase of 33.42 million from December 2023, accounting for 51.5% of all internet users.
Figure 23 User Size and Utilisation Ratio of Online Office from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 people). Right axis: Utilisation ratio (% of Internet users using online office).
Source: Statistical Survey on China’s Internet Development, December 2024.
In 2024, China’s basic Internet applications continued to develop robustly, their functions were enhanced, and their commercial boundaries were extended. The revenue of information service providers continued to increase. According to data on the operation of the Internet and related service industries in the first three quarters of 2024, Internet business revenue of news & information, search, social networking, and other information service-based enterprises increased by 7.5% year-on-year34.
The instant messaging industry has been enriching scenarios, enhancing user experience, and driving growth in consumption and business revenue. First, it has helped build a diversified industry ecosystem. Tencent has enriched its industry ecosystem by establishing connections among WeChat, QQ, and online games. Tencent’s Interim Financial Report 2024 indicated that over 30% year-on-year growth in total revenue was attributable to mini games54. The Financial Report Q3 2024 showed that game revenue from the international market grew by 9% year-on-year36. Tencent has systematically built its transaction capabilities to create a robust transaction and content ecosystem for the applet business and to provide users with a more comfortable shopping experience. In the third quarter, the turnover of applets exceeded RMB trillion, up by over ten percentage points year-on-year37. Second, the e-commerce business was an essential source of revenue. The channels on WeChat have continued to expand the number of commodity categories and have encouraged more content creators to participate in live selling, thereby improving the e-commerce ecosystem. In 2024, the total number of usage hours on Channels increased by more than 80% year-on-year in the first quarter 38. The Channels contributed substantial revenue39.
The search engine industry, driven by emerging technologies, has enhanced service effectiveness and promoted the diversified development of market players. First, AI technologies have empowered intelligent search. As generative AI technology continues to evolve, the traditional search engine industry has focused on enhancing smart and personalised services. The AI functions of the Baidu App covered nearly 70% of its monthly users, and more than 20% of search result pages included AI-generated content40. To provide personalised services, Baidu launched its AgentBuilder, with over 100,000 smart agents using the commercial component. It achieved a 395% increase in the number of intelligent agents gaining revenue41. Second, content platforms have emerged as a new force in the industry. E-commerce and social networking platforms have paid greater attention to building the search business within the content ecosystem and to leveraging it to improve revenue conversion. They have served as an essential new force in this industry. Sina Weibo released the Zhiwei model, developed the Smart Search scenario, and helped users quickly understand the content of popular searches, leveraging general data and specialised data such as real-time hot topics, storylines, and Internet buzzwords. In March 2024, Tencent’s financial report indicated that WeChat Search's daily active users exceeded 100 million and that search volume increased by more than 30% year-on-year. The search ads also delivered a multi-fold increase in annual revenue [42]. More than 500 million users used Kuaishou Search monthly in Q3 2024. Average daily searches exceeded 700 million, up by more than 20% year-on-year. The peak in single-day searches also exceeded 800 million 43. On the Xiaohongshu website, 70% of monthly active users conducted six searches per day. The first action among one-third of users upon opening the app was to search.
The online office industry has demonstrated a smart development trend and enhanced its business potential through the payment model. First, large models have boosted innovative development. In 2024, AI technologies promoted innovation and development in the online office industry. They optimised office efficiency and enhanced the user experience across multiple aspects, including content generation, text processing, and summary generation. Take DingTalk as an example for you. As of January, DingTalk had more than 20 product lines and over 80 scenarios for accessing large models, with 700,000 enterprises using DingTalk services45. In June, DingTalk announced its opening to all large model vendors to build China’s most open AI ecosystem. In addition to the large model Tongyi, MiniMax, Moonshot, and four other large model makers have also partnered with DingTalk46. Second, the payment model became an important source of revenue. As of January 9, more than 300,000 three-party payment enterprises and more than 100 million three-party payment accounts47 were registered on the enterprise version of WeChat. The subscription revenue of the software Feishu exceeded USD 200 million in 2023, doubling the 2022 revenue. It was growing at a high rate in 202448 and expected to surpass USD 300 million49.
The social networking industry has enriched the content ecosystem, explored the new trend of AI social networks, and fostered the diversified development of the industry ecosystem. First, social networking applications have been the primary channel for netizens to obtain information. By December 2024, China had 1,101 million social networking users, accounting for 99.3% of the total. Social networking has been the main channel for netizens to get information. 44.7% of Internet users paid attention to information about travel, shopping, and local life. 23% of the TikTok live streamers registered in the first half of 2024 focused on the life segment50. Xiaohongshu has become a vital promotion channel for cultural and travel content, with more than 2.21 million travel notes posted during China’s 2024 National Day holidays, an increase of 11.8% year-on-year. It attracted 4.7 billion views51. 47.6% of Internet users paid attention to information on sports, business and science & technology. During the 33rd Olympic Games held in Paris, Internet users paid greater attention to sports-related topics. During the Paris Olympics, there were more than 4 billion interactions with Olympic-related content across five major social media platforms: Weibo, TikTok, Xiaohongshu, Bilibili, and Kuaishou52. Second, multiple platforms have continued to explore the new trend of AI-based social networking. Sina Weibo has developed several applications that leverage AI technologies, including comment bots, virtual character generation for dramas and variety shows, and AI assistants for bloggers. Commentator Robert, an intelligent robot, interacted with users in a fun and warm style to improve users’ stickiness and activity. The role generation model could use data to generate virtual characters and provide fans with personalised replies and comments. Tencent launched AI chat partners based on the classic social product QQ, offering various types of virtual characters, including companionship, stories, challenges, MBTI53, and celebrities. Users could have real-time conversations with these characters and enjoy a personalised social experience54. ByteDance unveiled the AI-based social app BagelBell, which provides technical services and interactive entertainment content as its core function55. Baidu released the WanHua app and the overseas AI-based social app SynClub. They were developed through AI technology to provide emotional companionship and social interaction. They aimed for in-depth communication with users through AI virtual characters. Soul, an innovative social app, explored the integration of AI and social interaction through its intelligent dialogue robot, Goudan, to provide a personalised communication experience for young users56.
Figure 24 Percentage of Topics Internet Users Following on Social Networks in 2024
Distribution of topics followed by Internet users on social networks in 2024.
Source: Statistical Survey on China’s Internet Development, December 2024.
Business Transaction Applications in China
As of December 2024, the number of online shopping users in China reached 974 million, an increase of 59.47 million from December 2023, accounting for 87.9% of the total.
Figure 25 User Size and Utilisation Ratio of Online Shopping from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 people). Right axis: Utilisation ratio (% of Internet users using online shopping).
Source: Statistical Survey on China’s Internet Development, December 2024.
As of December 2024, the number of online payment users was 1,029 million, an increase of 75.05 million from December 2023, representing 92.8% of the total.
Figure 26 User Size and Utilisation Ratio of Online Payment from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 people). Right axis: Utilisation ratio (% of Internet users using online payment).
Source: Statistical Survey on China’s Internet Development, December 2024.
By December 2024, the number of online meal-ordering users was 592 million, an increase of 47.77 million from December 2023, representing 53.4% of the total.
Figure 27 User Size and Utilisation Ratio of Online Meal Ordering from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 people). Right axis: Utilisation ratio (% of Internet users using online meal ordering).
Source: Statistical Survey on China’s Internet Development, December 2024.
In 2024, e-commerce trade applications showcased innovation and vitality. Highlights included trade-in programs on e-commerce platforms, connectivity on payment platforms, and drone-based meal delivery on online meal-ordering platforms. With their distinctive advantages and new models, online shopping, online payment and online meal ordering have facilitated the innovation and upgrading of business circulation, the healthy development of platform economy and the vitality release of digital-real integration.
Online shopping has experienced sustained growth, promoting consumption expansion and upgrading. In 2024, the e-commerce industry experienced rapid growth. Trade-in and cross-border e-commerce became essential factors. First, the trade-in of consumer goods yielded new results. Policies and measures to increase domestic demand and stimulate consumption have been introduced sequentially to promote the sales growth of 3C digital and home appliances. E-commerce platform enterprises have vigorously promoted the trade-in model to achieve mutual benefits for economic and social development. During the Jun.18 promotion period, JD.com collaborated with more than 20 provincial and municipal governments to increase consumer subsidies, with home appliance turnover in seven provinces and cities, including Beijing and Hebei, rising by over 100% year-on-year57. During the Nov.11 promotion period, government subsidies and the discounts stimulated the first-hour turnover of Tmall’s home appliances by 765% year-on-year58. The trade-in policy provided economic benefits to consumers and promoted the consumer market, obviously. Second, cross-border e-commerce injected new vitality into foreign trade development. In the first three quarters, China’s cross-border e-commerce import and export was RMB 1.88 trillion, up 11.5% year-on-year59. Cross-border e-commerce has become a vital force in China’s foreign trade development. The live-streaming base of cross-border e-commerce has helped Chinese brands go global. Enterprises have used platforms such as TikTok Shop to promote their products among consumers worldwide through short videos and live streaming. The e-commerce platform implemented technological innovations to support the development of cross-border e-commerce. The AI business assistant on Alibaba.com has offered product release, marketing, and promotion to support the international expansion of small and medium-sized enterprises. As of October, AI business assistants for domestic sellers had 45,000 users60.
The online payment environment has been optimised consistently, and new services have benefited more people. In 2024, the interconnection of online payments advanced rapidly, and additional service innovations were implemented. First, progress has been made in interplatform connectivity. Internet payment agencies have carried forward interconnection. Various bar codes have advanced in mutual recognition and scanning, thereby ensuring consumers’ right to choose online payment methods. In September, Taobao and Tmall released Solicitation of Opinions on Taobao’s New WeChat Payment Capability and Solicitation of Opinions on Tmall’s New WeChat Payment Capability, respectively. The interconnection among e-commerce platforms has deepened, and the consumer experience has been continuously enhanced. Alipay, WeChat Pay, and China UnionPay Quick Pass have achieved mutual recognition and barcode scanning across offline channels, thereby promoting the interconnection of online and offline multi-scenario payments. By October, 85% of Taobao shops accepted payments via China UnionPay Quick Pass61. Second, the new payment method has been more convenient. The user’s convenient payment experience has been improving, thereby enabling new forms of consumption. In July, Alipay launched the touch-it payment service. A user does not need to display the payment code; instead, they unlock the phone and touch the shopman’s payment device to complete the payment. Quick pay has become a new way for retailers to operate their cash registers and memberships. As of September 6, the touch-it payment service served more than 50 cities, including Shanghai, Chengdu, Wuhan, Changsha, Hangzhou, and Qingdao62, providing additional opportunities for shopkeepers. Huawei, Xiaomi and other mobile phone manufacturers have accessed the touch-it function. All parties are working together to promote the touch-it ecosystem.
The online meal-ordering technology has been developed to improve efficiency, and the delivery service model has been iteratively refined. In 2024, instant delivery accelerated technological innovation, and online meal-order delivery explored new models. First, digital technology facilitated the growth of the instant-delivery business. According to the data, the number of Meituan instant delivery transactions in Q3 reached 7.078 billion, a year-on-year increase of 14.5%63. Online meal ordering companies have optimised their scheduling systems using big data and AI to address issues such as order backlogs and delivery delays during peak hours, and to ensure the timeliness, accuracy, and safety of instant delivery. Meituan has expedited collaboration on technology and data with property management companies to develop a rider-friendly solution, in which riders can use WeChat to scan the property applet code at the community entrance to complete one-key registration and instant verification. Such efforts can improve the efficiency of rider delivery. Second, drone-based meal delivery became a new model. Drone-based delivery routes have been established at a rapid pace, accelerating the development of the low-altitude economy. Meituan has conducted drone deliveries in multiple scenarios, including communities, scenic spots, municipal parks, and campuses, to meet consumers' timeliness needs. As of September, Meituan drones operated 53 routes in Beijing, Shenzhen, Shanghai, Guangzhou, and other cities, completing over 400,000 orders 64. During the National Day Golden Week, Meituan drones opened a new delivery route in the South Fifth Tower area of the Badaling Great Wall. Average daily orders increased by more than 1,100% compared with the pre-holiday weekend period, with Chinese and Western-style simple meals and beverages becoming best-selling items65.
Footnotes
34 China’s Ministry of Industry and Information Technology, https://www.miit.gov.cn/jgsj/yxj/xxfb/art/2024/art_42faa762420a4d1ab7160c4d5f1f7b8f.html, October 31, 2024.
35 Tencent’s Interim Financial Report 2024, https://static.www.tencent.com/uploads/2024/08/27/921cf1c0c56a51dd08ee318678b3bb08.pdf, August 14, 2024.
36 Tencent’s Financial Report Q3 2024, https://static.www.tencent.com/uploads/2024/11/13/309f975d755016a10be34254968a1651.pdf, November 13, 2024.
37 Tencent’s Financial Report Q3 2024, https://static.www.tencent.com/uploads/2024/11/13/309f975d755016a10be34254968a1651.pdf, November 13, 2024.
38 Tencent’s Financial Report Q1 2024, https://static.www.tencent.com/uploads/2024/05/14/eef7133794cd389f7a031dbac92f2e4f.pdf, May 14, 2024.
39 ThePaper.cn, https://www.thepaper.cn/newsDetail_forward_27607077, June 3, 2024.
40 Yicai, https://www.yicai.com/news/102369201.html, November 21, 2024.
41 Xinhuanet, https://www.xinhuanet.com/tech/20241121/dbda2471b1374eb6b4d3757e7d5f539c/c.html, November 21, 2024.
42 36Kr, https://news.qq.com/rain/a/20240321A04DG700, March 21, 2024.
43 Kuaishou Technology Releases Unaudited Financial Results Q3 2024, https://ir.kuaishou.com/zh-hans/news-releases/news-release-details/kuaishoukejifabu2024niandisanjiduweijingshenhecaiwuyeji, November 20, 2024.
44 Xiaohongshu Search Report, https://aigc.idigital.com.cn/djyanbao/【DT 研究院%2C 第一财经研究院】2024小红书 10 大搜索趋势洞察报告-2024-08-07.pdf, August 7, 2024.
45 WeChat official account of DingTalk, https://mp.weixin.qq.com/s/ytTjhXBcygCiVVTW_S2MgQ, January 9, 2024.
46 Yicai, https://new.qq.com/rain/a/20240626A0A7CU00, June 26, 2024.
47 Yicai, https://www.yicai.com/news/101951383.html, January 9, 2024.
48 Caijing, https://mp.weixin.qq.com/s/QDUBrNmyEZCrRY86TO-sKA, September 5, 2024.
49 Jiemian News, https://m.jiemian.com/article/11674929.html, September 4, 2024.
50 Feigua, https://dy.feigua.cn/article/detail/912.html, July 31, 2024.
51 Gmw.cn, https://travel.gmw.cn/2024-10/18/content_37622773.htm, October 18, 2024.
52 36Kr, https://36kr.com/p/2908135522507392, August 16, 2024.
53 MBTI refers to Myers–Briggs Type Indicator, a theoretical model of personality test developed by Isabel Myers and Kathryn Briggs.
54 Tencent, https://new.qq.com/rain/a/20240306A09PR500, March 6, 2024.
55 36Kr, https://www.36kr.com/p/2716214611769218, April 2, 2024.
56 ThePaper.cn, https://m.thepaper.cn/newsDetail_forward_26365322, February 16, 2024.
57 Xinhuanet, http://www.news.cn/fortune/20240620/460e363f69f04015ad99d1b89bdc8990/c.html, June 20, 2024.
58 CNR News, https://tech.cnr.cn/ycbd/20241014/t20241014_526939704.shtml, October 14, 2024.
59 China’s State Council, https://www.gov.cn/lianbo/bumen/202410/content_6980300.htm, October 14, 2024.
60 STCN, http://egs.stcn.com/news/detail/1892429.html, October 22, 2024.
61 Gmw.cn, https://m.gmw.cn/baijia/2021-10/15/1302640046.html, October 15, 2024.
62 Ant Group, https://www.antgroup.com/news-media/press-releases/1725616800000, September 6, 2024.
63 Meituan’s Financial Report Q3 2024, https://www.hkexnews.hk/listedco/listconews/sehk/2024/1129/2024112900544_c.pdf.
64 Meituan’s Financial Report Q3 2024, https://www.hkexnews.hk/listedco/listconews/sehk/2024/1129/2024112900544_c.pdf.
65 Media report on Meituan drones during National Day Golden Week (Badaling Great Wall South Fifth Tower area), 2024.
IV Culture, Tourism and Entertainment Applications
Online Travel Booking
By December 2024, China had 548 million online travel booking users, an increase of 39.35 million from December 2023, representing 49.5% of all netizens.
Figure 28 User Size and Utilisation Ratio of Online Travel Booking from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 persons). Right axis: Utilization ratio (% of all Internet users).
Source: Statistical Survey on China’s Internet Development, CNNIC, December 2024.
In 2024, China’s tourism industry experienced strong momentum in its recovery, with rapid growth and enhanced quality, becoming a highlight of economic and social development. AI, virtual reality, and other technologies have been applied rapidly, enabling high-quality development in culture and tourism. The deep integration of digital and real economy has become a new trend in tourism consumption.
New scenarios have been built around content and experience, fostering the integration of culture and tourism. First, tourist highlights have appeared in succession. In response to increasing consumer demand, the tourism industry has diversified. Tianshui Malatang, a type of Chinese street food, blue Pingtan luminous seaweed, and other niche tourism specialities have become new attractions. “Going to a city for a concert” and “small counties are more cost-effective than big cities” have emerged as new ideas for culture, recreation and tourism.
According to data 67, there were 4.237 billion domestic trips in the first three quarters of 2024, up 15.3% year-on-year. Domestic tourists spent a total of RMB 4.35 trillion, up 17.9% year-on-year, and Tianshui Malatang contributed to a more vibrant cultural and tourism market. From January to September, Tianshui recorded year-on-year growth of more than 25% in cumulative tourist numbers and tourism revenue 68.
During the National Day holiday, the number of national business performances increased by 14.5% year-on-year, and box office revenue grew by 25.9% on a year-on-year basis; audience attendance grew by 13.3% compared with the previous year69; and Ctrip county tour orders were up by 20% year-on-year70.
Second, the integration of culture and tourism has brought about new vitality. Local governments have fully leveraged the spread effect of short videos, live streaming, and online games to showcase culture, cuisine, attractions, and other features comprehensively, create new cultural and tourism cards, and drive the development of the artistic and tourism industry and the broader economy.
Since the release of the domestic game Black Myth: Wukong, Shanxi, the central location of the game’s scenes, has seen a rapid rise in attention and has become one of the most popular tourist destinations. The Shanxi Provincial Culture and Tourism Department has turned the online game craze into an offline tourism craze by launching corresponding tourism products, disseminating information on social media, and creating peripheral cultural products. In the first three days of the National Day holiday, the booking volume of tour orders in Shanxi Province increased by 63% and the booking amount grew by 171% compared with the Mid-Autumn Festival71.
Third, immersive experiences have become a new highlight of tourism. AI, augmented reality (AR), and virtual reality (VR) have been increasingly applied in culture and tourism, offering new experiences to tourists. The Colourful Grotto Art Immersion Experience Exhibit by the National Museum of China has provided a new interpretation of grotto art. The 5G Immersive Experience Zone of the Grand Canal has become the most popular attraction in the Yangzhou-based museum in Jiangsu Province. The Chaozhou Hanbi Pavilion has introduced VR and AR to reconstruct historical scenes and present “red stories” more vividly.
According to the data, the first 42 new immersion experience locations attracted more than 4.3 million consumers during the May Day holidays, with total consumption exceeding RMB 220 million 72.
Online Video and Live Streaming in China
As of December 2024, the number of online video users had reached 1,070 million, an increase of 3.47 million from December 2023, accounting for 96.6% of all Internet users. The number of short video users was 1,040 million, accounting for 93.8% of all Internet users.
Figure 29 User Size and Utilisation Ratio of Online Video from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 persons). Right axis: Utilization ratio (% of all Internet users).
Source: Statistical Survey on China’s Internet Development, CNNIC, December 2024.
By December 2024, the number of live-streaming users was 833 million, an increase of 17.37 million from December 2023, representing 75.2% of all internet users.
Figure 30 User Size and Utilisation Ratio of Live Streaming from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 persons). Right axis: Utilization ratio (% of all Internet users).
Source: Statistical Survey on China’s Internet Development, CNNIC, December 2024.
Online Literature and Micro Dramas In China
As of December 2024, the number of online literature users was 575 million, an increase of 54.74 million from December 2023, accounting for 51.9% of all internet users.
Figure 31 User Size and Utilisation Ratio of Online Literature from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 persons). Right axis: Utilization ratio (% of all Internet users).
Source: Statistical Survey on China’s Internet Development, CNNIC, December 2024.
By December 2024, China had 662 million micro drama users, accounting for 59.7% of all netizens. First, high quality has become the development direction of the micro drama industry. China’s National Radio and Television Administration has collaborated with all parties to promote the micro-drama industry toward excellence, creativity, and scale-up.
The programs Travelling with Micro Drama, Viewing China in Micro Dramas, and A Look at Brands in Micro Dramas have been launched in succession to foster a co-growing, open, and inclusive micro drama industry ecosystem.
Second, a variety of platforms have entered the micro-drama industry. From short video platforms, traditional film and television companies, and online literature platforms to long video platforms, television stations, and e-commerce platforms, many players have entered the micro dramas field in an effort to turn micro dramas into a key driver of revenue growth.
For example, the e-commerce platform Taobao launched a short drama theatre on its secondary page. Pinduoduo has released micro-drama episodes covering a variety of genres and are accompanied by product links. In April, JD announced that it had invested RMB 1 billion and 1 billion bytes of traffic as incentives to attract more original creators of micro dramas and high-quality content organisations.
AI Empowering Culture, Tourism and Entertainment In China
AI technologies have created new opportunities for the culture, tourism, and entertainment industries. In the online video, game, live streaming, literature, and other cultural and recreational industries, AI technologies have been applied across business scenarios to improve content quality and enhance commercialisation.
In online video, AI technologies have been applied to content planning, production, distribution, personalised recommendation and online marketing. For example, the video generation model Kling AI has more than 6 million users who have generated over 65 million videos and more than 175 million pictures73.
In the first half of the year, nearly 20,000 merchants realised smart operation with a large model on the Kuaishou platform. In the second quarter, Kuaishou e-commerce’s total transaction amount for searched-for goods increased by over 80% year-on-year following the introduction of a large recommendation model that improved the ability to recognise users’ shopping intentions 74.
In the online literature, AI technologies have become a new engine of development. First, AI-assisted creative writing has inspired online literary authors. Based on the natural language processing capabilities of large models, creators can use AI to assist with framework construction, cue organisation, character setting, and scene description.
Second, the translation process has been optimised, making it possible for works to be translated and updated efficiently and distributed overseas. With the help of AI, translation efficiency has been significantly improved, the volume of translation has increased, and translation costs have been reduced, making it easier for overseas readers to access domestic online literary works.
Public Service Applications in China
Online Car-Hailing Services in China
As of December 2024, the number of car-hailing users was 539 million, an increase of 11.80 million from December 2023, accounting for 48.7% of all internet users.
Figure 32 User Size and Utilisation Ratio of Online Car-Hailing Services from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 persons). Right axis: Utilization ratio (% of all Internet users).
Source: Statistical Survey on China’s Internet Development, CNNIC, December 2024.
Under continued policy guidance in 2024, enterprises specialising in industries such as online car-hailing, Internet healthcare and online education were empowered by digital technologies. Through the practice of digital-real integration, they have better met the needs of specific groups, enhanced the accessibility and universality of services, and delivered convenience and well-being to more people.
The online car-hailing industry has contributed to green and low-carbon travel and significantly enhanced elderly-friendly travel services.
First, green and low-carbon travel has been steadily developing. Platforms and enterprises have built up the power-exchange business for new energy vehicles. In January, Didi and Contemporary Amperex Technology Co. Limited (CATL) established a joint venture to provide power-exchange services for new-energy vehicles, particularly for online car-hailing scenarios.
In May, CaoCao Inc. deployed vehicles with 60-second customised power exchange in Jinan and Rizhao to promote the development of Shandong’s new energy car-hailing ecosystem. For users, the frequent use of travel models such as ride-sharing has driven more efficient use of vehicle resources. In the first half of the year, the overall transaction volume of Didachuxing’s ride-sharing services reached RMB 4.007 billion, with an order volume of 61.7 million75.
Second, platforms’ services for older people have improved, and the threshold for online car-hailing among older adults has been lowered. By December, the utilisation rate of online car-hailing for seniors aged 60 and above reached 24.6%, with a user size of 38.49 million. By the end of September, Didi had provided 197 million trips to 6.24 million seniors in 355 cities76.
Meanwhile, the one-key car-hailing service is available in 325 cities, significantly improving response efficiency for elderly users. More than 150 million orders77 have been made to serve 15.43 million elderly passengers. In October, Didi upgraded its car-hailing services for older people, not only by optimising online services and functions, but also by increasing the number of offline car-hailing stops for older people.
Internet Healthcare in China
As of December 2024, China had 418 million Internet healthcare users, an increase of 3.72 million from December 2023, accounting for 37.7% of all netizens.
Figure 33 User Size and Utilisation Ratio of Internet Healthcare from Dec. 2020 to Dec. 2024
Left axis: User size (10,000 persons). Right axis: Utilization ratio (% of all Internet users).
Source: Statistical Survey on China’s Internet Development, CNNIC, December 2024.
The development potential of the Internet healthcare industry has been further realised. In June, the General Office of the State Council issued the Key Tasks for Deepening the Reform of the Medical and Health System 2024, which focuses on the coordinated development and governance of health insurance, medical care, and medicine.
With the adoption of large-scale medical models and the expansion of online medical purchases through medical insurance, Internet healthcare services have been significantly enhanced.
First, Internet medical services have been further developed and widely utilised. At present, 3,340 Internet hospitals across the country provide Internet diagnosis and treatment services for more than 100 million visits per year 78, of which the average daily online consultation volume at JD Health Internet Hospital was more than 480,000 79.
Second, medicines have been purchased via online medical insurance to meet patients’ needs. Online medicine purchases, medical insurance payments, and instant delivery not only further ease the burden of purchasing medicines but also significantly enhance convenience.
Since July, Beijing, Shanghai, Guangzhou and Shenzhen have promoted the implementation of medicine purchase services through online medical insurance. People can use their health insurance accounts to purchase medicines in nearly 500 pharmacies80 in 16 administrative districts and economic development zones of Beijing.
More than 1,000 pharmacies in Shanghai have joined the online health insurance program for the purchase of medicines and have completed settlements for about 2,047,000 people81.
Third, large models help improve the quality and efficiency of online diagnostic and treatment services. In June, Ping An Health released “Ping An Doctor Aid”, a multimodal medical model designed to assist in generating patients’ health records and provide medical knowledge. In August, JD Health released the “Beijing Doctor Consulting” model, which helped make remote medical treatment more intelligent by giving medical advice and diagnosis.
Online Education in China
The strengths of online education platforms have continued to emerge, promoting educational fairness and universality. By December 2024, China had 355 million online education users, accounting for 32.0% of all netizens.
First, the channels of “learning for all” have been widened. The number of MOOC courses in China exceeded 76,800, with 1.277 billion views. The country ranked first in the world in online course development and application 82.
Second, rural education has become more equitable and inclusive. For example, the Digital Education Courtyard, built by Beijing Normal University, has relied on the national wisdom education platform for primary and secondary schools and has provided strong support for the vitalization of rural education by creating digital curriculum resource packages and enhancing digital education and teaching.
“Wenshu AI Education”, released by China Unicom, aims to provide services for teachers and students in rural areas to narrow the gap between urban and rural education and balance educational resources. As of December, the utilisation rate of online education in China’s rural areas reached 24.0%, with 75.17 million users.