The Plan for the Overall Layout of Building a Digital China (hereinafter referred to as the Plan) recently issued by the Central Committee of the Communist Party of China and the State Council proposes that by 2025, the fundamental elements of an integrated system that is tightly coordinated and linked both horizontally and vertically should take shape, and significant advancements should be made toward building a Digital China; by 2035, China’s level of digital development should be comparable to that of the world’s top countries, and the building of a Digital China should bring about great achievements.

Professor Zhou Xianghong from the Department of Public Administration of Tongji SEM and President Zeng Gang of the Institute of Urban Development of East China Normal University have recently been invited to the 632 Observation column of the Oriental Financial Pudong Channel to analyze how to make digital infrastructure more efficient and how to further improve digital-real integration around the Plan. They also shared their views on the combination between the development of the digital economy and the characteristics of Shanghai. The interview footage and a sample of its material are provided below.

Q1: What does the Plan impress you the most?

 Zhou Xianghong:  The Plan states that the layout of building a Digital China will follow the overall framework of “2522”.

The first “2” refers to two foundations, including digital infrastructure and digital resource systems. Digital infrastructure is “static” while digital resource systems are “dynamic”, making the two a static-dynamic combination with modules interconnected.

The “5” refers to promoting the deep integration of digital technology with the economy, politics, culture, society and ecological civilization construction. I quite agree with the cultural aspect mentioned here because every country and city has its own cultural genes. From this, technology and culture should be integrated in the process.

The second “2” refers to two capabilities, namely the digital innovation system and the digital security shield. Security and innovation are two important capabilities given the vulnerability and risks in the innovative development of the digital economy.

The third “2” refers to optimizing the domestic and international environments for digital development. For thousands of years, people have been trying to increase their available living and development space. To do this, they use wooden boats to expand the horizontal environment and buildings to increase the vertical one. Similar to this, the “finishing touch” for today’s “digital-real integration” is to optimize the domestic and international environments.

Q2: Could you please elaborate on the digital economy?

 Zhou Xianghong:  The digital economy has been developing in two directions: one is digital industrialization and the other one is industrial digitization. The concept has now spread widely. The Plan makes some innovative points that emphasize how to develop a brand-new consumption pattern. This is a special point that can promote the high-quality modern development of the digital economy and digital industries with Chinese characteristics.

Q3: Recently, ChatGPT has become extremely popular. Artificial intelligence is closely related to the Plan. The document proposes to improve China’s digital economic infrastructure to support artificial intelligence development with high computing requirements. Could you please provide more details about digital infrastructure?

 Zhou Xianghong:  “New infrastructure” has been mentioned in the Outline of the 14^th Five-Year Plan and those of the previous plans. It includes three parts: firstly, the new-generation information infrastructure, namely, communication network infrastructure represented by 5G; secondly, facilities integrated with “Internet Plus”, such as smart buildings, smart hospitals and smart parks; thirdly, major infrastructure that supports scientific research and development. The Plan highlights computing infrastructure that encompasses the frequently-mentioned national computing network to synergize east and west.

Q4: How should digital development integrate with the real economy and industry? How is the current development of “digital-real integration”?

 Zhou Xianghong:  Various places in China have taken different measures, including spatial integration. For example, through digital transformation, Shanghai’s five new urban areas are planned to become new driving forces for Shanghai’s overall development and highlands for serving the Yangtze River Delta. An example of “digital-real integration” is the use of unmanned factories in several industries to boost productivity, reduce costs and revitalize traditional industries.

Q5: Shanghai has been strengthening its layout in the new digital economy that is a test of digital industry development. What do you think are the important foundations for Shanghai’s layout in the new digital economy? What advantages does Shanghai’s practice have for the country?

 Zhou Xianghong:  I think Shanghai has four advantages. First, Shanghai has the policy advantage because the Shanghai Municipal Government is building Pudong into a pilot demonstration zone; second, Shanghai has the talent advantage because it has a large concentration of universities and talent resources; third, Shanghai has a big advantage in terms of the foundation of the digital economy; fourth, Shanghai has the node advantage because it is an important node in the domestic and international environments. The Digital China initiative requires more extensive collaboration, and there are four critical steps that must be taken. The first is to consider how the five new urban areas are coordinated; the second is to consider how the 16 districts of Shanghai might develop differently and create an integrated pattern; the third is to consider how Shanghai can function as a connecting point more effectively for the domestic and international environments; the fourth is to consider where the industrial chain fits into the process. Shanghai should serve as a model for the country.

Q6: The Pudong Pioneer Area plays a crucial role in leading development. In its development process, an international data port and a data exchange that are closely related to the development of the digital economy have been established. What role do you think Pudong can play?

 Zhou Xianghong:  I want to draw particular attention to the Shanghai Data Exchange here. The Plan specially refers to soft-hard integrated development while discussing the data property right system and the data asset pricing system. Data distribution and pricing are examples of “soft” systems. I think the Shanghai Data Exchange will provide a better system to support mobile government and digital consumption.