Transformations  in
Business & Economics

INFLUENCE OF THE DEVELOPMENT OF DIGITAL ECONOMY ON THE TRANSFORMATION AND UPGRADING OF CHINA’S MANUFACTURING INDUSTRY
Wenjing Chen

ABSTRACT: The digital economy is a transformative force that is reshaping the structure of industries worldwide. China has identified the development of its digital economy as a key factor in achieving high-quality economic growth. In this paper, we investigate the influence of this development on the transformation and upgrading of China’s manufacturing industry. Through a qualitative, systematic review of the literature, we examine the multidimensional impact of the emerging economy on the sector. Drawing on a comprehensive synthesis of 74 studies, we identify the key dimensions through which the digital economy drives the transformation in the manufacturing sector, namely innovation efficiency, resource allocation efficiency, and green transformation. We also discuss the key drivers of digital transformation, including technological integration, data-driven decision-making, and supply chain integration. Furthermore, we examine the implications of the digital economy for China’s manufacturing competitiveness and global positioning, emphasising the importance of proactive policy interventions to fully exploit its potential. This study contributes to scholarly understanding by providing insights into the mechanisms and implications of digital transformation in China’s manufacturing sector, with important implications for policymakers and scholars

KEYWORDS:  digital economy, digital transformation, manufacturing

JEL classification:  L86, D04, L60