54th Statistical Report on China's Internet Development
On August 29 2024, the China Internet Network Information Center (CNNIC) released the 54th "Statistical Report on China's Internet Development" (hereinafter referred to as the "Report") during the "Smart Economy Innovation Development" exchange event at the 2024 China International Big Data Industry Expo. According to the Report, as of June 2024, the number of internet users in China has reached nearly 1.1 billion (1.09967 billion), an increase of 7.42 million compared to December 2023, with an internet penetration rate of 78.0%. In the first half of the year, China's internet industry maintained a strong growth momentum, solidifying its foundational resources, stimulating domestic demand through digital consumption, unleashing innovation through digital applications, and enabling more people to access the internet and enjoy the conveniences and benefits of the digital age.
Continued Enrichment of Internet Basic Resources
The Report indicates that in the first half of the year, the basic internet resources, such as domain names and IP addresses, continued to grow, providing robust support for the operation and flourishing of the internet industry. First, the scale of IPv6 deployment and applications continued to advance. As of June, the number of IPv6 addresses was 69,080 blocks/32, a 1.5% increase from December 2023; by May, the number of active IPv6 users had reached 794 million, with mobile network IPv6 traffic accounting for 64.56%, and the IPv6 support rate for major commercial websites and mobile internet applications reaching 90%. Second, the number of national top-level domains has ranked first globally for ten consecutive years. As of June, the total number of domains in China was 31.87 million, with the national top-level domain ".CN" accounting for 19.56 million, representing 61.4% of the total.
Youth and Seniors as New Main Sources of Internet Users
The Report shows that in the first half of the year, China's digital information infrastructure remained robust, and services benefiting the public were widely developed, effectively promoting the growth of internet users. First, youth and seniors are significant sources of new internet users. With the continuous improvement of digital services for the elderly and the accelerated adoption of online applications, various measures have promoted more people to "go online." Data indicates that the number of new internet users increased by 7.42 million, primarily consisting of youth aged 10-19 and seniors. Among the new users, youth accounted for 49.0%, while those aged 50-59 and 60 and older represented 15.2% and 20.8%, respectively. Second, short videos have emerged as an important application for new internet users. Among this group, entertainment and social interaction needs most effectively stimulated their internet use, with short video applications accounting for 37.3% of the first-time internet applications used by these users. Additionally, instant messaging also showed significant potential for attracting new users, making up 12.6% of their first-time internet applications.
Trade-in Programs Unleash Domestic Demand Potential, Online Service Consumption Increasingly Popular
The Report highlights that in the first half of the year, trade-in consumption and online service consumption became highlights of consumer spending. First, online trade-in activities were thriving. In the first half of the year, e-commerce platforms actively supported the "trade-in for new" policy by increasing subsidies, simplifying processes, and improving logistics, which helped facilitate policy implementation and promote consumption upgrades. Data shows that among internet users participating in trade-in activities in the past six months, 68.8% chose to do so online. The highest rates of trade-in consumption were observed for mobile devices and washing machines, accounting for 28.8% and 23.7% of relevant users, respectively. Second, online life service consumption is becoming increasingly widespread. As online service scenarios become more diverse, more users are enjoying the convenience of life services online. As of June, users who had purchased online services such as takeout, in-store dining, movies, and recreational activities accounted for 50.3%, 20.7%, and 17.3% of internet users, respectively.
Mobile Payment Becoming More Convenient, Seniors and Foreign Nationals Enjoy New Payment Experiences
The Report indicates that in the first half of the year, the convenience of mobile payment has continuously improved due to a series of measures. First, mobile payment services for seniors are being progressively enhanced. Various stakeholders in the mobile payment industry are actively promoting upgrades for elderly users by simplifying processes and adding language support, thus improving their mobile payment experience. As of June, the usage rate of online payments among internet users aged 60 and above reached 75.4%. Second, mobile payment for foreign nationals in China has become increasingly convenient. Innovative mobile payment services like "outbound use" and "foreign card binding" for foreign nationals are continuously optimizing payment convenience. In the first half of the year, over 5 million inbound visitors used mobile payments, a fourfold increase year-on-year; the number of transactions exceeded 90 million, amounting to over 14 billion yuan, also a sevenfold increase year-on-year.
Rapid Development of the Online Video Industry, Micro-Short Dramas Gradually Becoming Standardized
The Report shows that in the first half of the year, as user demand for quality content continues to grow and the industry environment improves, the online video industry is experiencing robust development. First, the compliance level of the micro-short drama industry is continuously improving. With the rollout of guiding policies, the creation and production of micro-short dramas are becoming more standardized. The Report indicates that as of June, micro-short drama users accounted for 52.4% of all internet users. Second, the short video industry remains prosperous. With increasing user engagement on short video platforms, the short video e-commerce business is steadily developing, and the efficiency of commercialization is improving. As of June, short video users made up 95.5% of internet users. Third, the long video industry is enhancing quality and efficiency. The trend toward quality improvement continues, with series like "My Altay" and "Blossoms" achieving both popularity and critical acclaim, providing users with high-quality audio-visual experiences. As of June, long video users represented 65.2% of all internet users.