Significant economic growth has been fueled by the internet-based digital economy. However, it has also created opportunities and challenges to stabilize jobs and economic growth. To assess the impact of Internet technology on employment at the Chinese supply chain level, we first distinguish it from other technological developments in the manufacturing sector. Based on data from 2000 to 2014 in the Worldwide Output Statistics (WIOD), we used a comprehensive country matrix to verify the inter-firm effects in Chinese firms and their impacts on performance from a global output perspective. Empirical results show that Internet technological development in an industry significantly contributes to Internet technological development in “adjacent” industries. Advances in Internet technology are creating jobs in the industry. Furthermore, due to the positive spillovers between firms, the technological development of the Internet has a positive effect on employment at the individual level and, through differential effects across firms, also positively affects employment across firms. In order to encourage employment and development, the policy should classify Internet technology, particularly those that are closely associated with other industries.
Advancements in internet technologies such as big data, artificial intelligence (AI), and artificial intelligence have allowed China to achieve significant growth in cyberspace. China came in second to the United States in terms of Internet penetration worldwide, according to the Global Internet Development Report (2018), which was presented at the 5th World Internet Conference.
In May 2016, four Chinese government ministries jointly released a three-year strategic plan for “Internet Plus,” emphasizing the need to integrate Internet technology into traditional industries and expressing government officials’ positive attitudes toward modern technology. With better infrastructure and government policy support, the growth of the Internet in China is accelerating rapidly. According to a report from the Chinese Agency for Information and Communication Technology (CAICT), China’s digital economy accounted for 34.8 percent of GDP in 2018 and 36.2 percent of GDP in 2019. See China’s “Working Economy”: It’s and 731 million Internet subscribers in 2016, 1.7 times more than India and the United Nations combined, and 2.5 times more than the United States. According to China’s 45th Mobile Development Statistics Report, there were 904 million active users as of March 2020, representing a 64.5% penetration rate.
Internet technology still has enormous room for growth in China, accounting for 85% of developed countries. The globe will be greatly impacted by China’s digital transformation, which has already had a significant impact on the economy and will continue to do so for decades to come.
However, the emergence of new technologies, new business models, and new products based on the Internet and artificial intelligence will have a profound impact on the industry. Most of China’s populations point to employment as one of the biggest challenges to economic and social development. Consistent with this employment situation, China’s unemployment rate (5.15 in 2019) remains below the global average and lower than that of middle-income countries. As a result, China is actively researching how Internet technology affects jobs.2018 as well as political occurrences in 2012
. Researchers have increasingly focused on employees’ interpersonal behavior in R&D activities related to technology ideas (Zhang et al., 2017, 2019). The rapid growth of Internet technology has raised concerns that machines can replace human workers, and the growth of Internet technology and its importance in productivity is a key research paper (Frey and Osborne, 2017; Acemoglu and Restrepo, 2017, 2018; the work of Obedot and Ormery differs from Technology; Like, 20,2;2019; other emerging technologies As the division of labor between firms improves and the technological and economic relations between firms become more complex, the development of Internet technology has consequences for the process of economic growth and employment independent of the main conclusions.
