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World Economy Brief

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China’s Internet Plus Strategy: Characteristics and Regional Case Study

China is pursuing the "Internet Plus"(Internet convergence) strategy to create a new industry ecosystem for the future, in which various economic and social sectors converge with the Internet through an Internet platform and ICT technology. Along with "Made in China 2025," China’s Internet Plus strategy is an important strategy to realize innovation as a new growth engine for China. The strategy will be responsible for promot-ing industrial advancement and formulating an effective response to the 4th Industrial Revolution. It is expected to serve as a catalyst for Chinas economic growth and an important factor that will transform Koreas business model with China, as new industries that utilize Internet convergence are growing along with the development of the Internet economy. With the development of the Internet economy, the market size of the new economy related to Internet finance (FinTech), online education, smart facilities, app-based business and smart city projects is rapidly growing in China. In addition, China is promoting the innovation of software in the 4th Industrial Revolution and the transition toward "smart" processes in existing industries such as distribution, logistics, and manufacturing. In light of these developments, it is necessary to identify significant changes in Koreas future cooperation with China, particularly in relation to ICT manufacturing and Internet-related industries, an area where Korea is particularly strong.
Based on this perception and background, this study examines Chinas Internet Plus strategy to enable a preemptive response to changes caused by the 4th Industrial Revolution, and identifies relevant policies, technology and industry demands and related risks unfolding in some sectors and regions. The study then goes on to present new approaches to advance into new areas of the Chinese market and promote cooperation between Korea and China. In particular, we analyze the present status, nurturing policies, and local cases of smart healthcare, smart city, and artificial intelligence projects, which have a large impact on the economy and industry and generate high added value in 11 major fields related to Internet convergence.

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