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Live Trading News > Blog > Asia > China > China Supercomputer Network
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China Supercomputer Network

Shayne Heffernan Ph.D.
Last updated: April 11, 2024 10:37 pm
Shayne Heffernan Ph.D.
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China Unveils National Supercomputing Network to Drive Digital Innovation

Contents
The Scale of China’s Digital EconomyThree Driving Forces

Here are some key highlights of the national supercomputing network:

  1. Collaborative Innovation: The platform serves as an opportunity to drive collaborative innovation across multiple domains, including hardware, algorithms, applications, and system architecture. Leading experts, including computer scientist Qian Depei, who is an academician of the Chinese Academy of Sciences, are actively involved in shaping the network’s future.
  2. Service Providers: Over 200 service providers have joined the network, contributing more than 3,200 cutting-edge products. These offerings span a wide range of applications, from scientific computing and industrial simulation to AI model training.
  3. Digital Economy Support: As China continues to embrace digital transformation, the national supercomputing network plays a crucial role in supporting the digital economy. Its robust infrastructure will enhance research capabilities, accelerate innovation, and drive economic growth.

With the official opening of its national supercomputing network, China has achieved a major technological milestone in its technological advancements. Held in the Tianjin Municipality of north China, the inauguration ceremony signaled the start of a new age in computing capability.

The network’s main goal is to balance the supply and demand of computer power while offering vital assistance for the growth of the digital economy. Under the direction of Qian Depei, an academician of the Chinese Academy of Sciences and computer scientist, the platform seeks to leverage AI’s potential to promote collaborative innovation in a range of computing domains.

Qian Depei emphasized that the network will serve as a catalyst for advancements in hardware, algorithms, applications, and systems within the computing field. By leveraging artificial intelligence, the platform seeks to unlock new opportunities and foster synergy among industry players.

With more than 200 service providers offering a wide variety of apps, data, and computing models, the network’s inclusivity is one of its primary strengths. These contributions include more than 3,200 products, including state-of-the-art digital technologies like AI model training, industrial simulation, and scientific computing.

The Ministry of Science and Technology declared in April 2023 that work on building the national supercomputing network had begun. Since then, a lot of work has gone into building a solid infrastructure that can adapt to the changing demands of the digital world.

The establishment of the national supercomputing network is an important milestone in China’s quest to become a global leader in innovation and digital transformation, as the country continues to place a high priority on technical advancement.

China’s digital economy has emerged as a powerhouse, reshaping industries, driving innovation, and propelling the nation toward unprecedented growth. Let’s delve into the key facets of this dynamic landscape.

The Scale of China’s Digital Economy

In recent years, China’s digital economy has experienced robust growth. By 2022, it had reached a staggering 50.2 trillion yuan (approximately 7.09 trillion U.S. dollars), ranking second globally. This impressive figure accounts for 41.5% of China’s GDP.

Three Driving Forces

Several factors contribute to China’s digital ascendancy:

  1. Market Size and Youthful Demographics: China’s vast population, particularly its digitally savvy youth, fuels rapid commercialization of digital business models. With 731 million Internet users in 2016—more than the European Union and the United States combined—China provides an ideal testing ground for innovation. Nearly one in five Chinese Internet users rely on mobile devices exclusively, compared to just 5% in the United States. This enthusiasm for digital tools accelerates adoption and fosters competitiveness.
  2. Ecosystem Building by BAT: The triumvirate of Baidu, Alibaba, and Tencent (collectively known as BAT) has been instrumental in shaping China’s digital landscape. These giants have systematically disrupted inefficient offline markets while setting new global standards in computing efficiency. Their multifaceted “super apps” now touch every aspect of consumers’ lives, offering services that have expanded sevenfold since 2011.
  3. Venture Capital Investment: BAT companies dominate venture-capital investment in China, accounting for 42% of all such investments in 2016. In contrast, Amazon, Facebook, Google, and Netflix together contributed only 5% of U.S. venture-capital investment. China’s digital ecosystem thrives on this robust investment climate.

With over 40% of all e-commerce transactions worldwide, China has the largest e-commerce market in the world. This is a significant increase from less than 1% a decade ago.Furthermore, the transaction value of mobile payments in China surpasses that of US payments by an astounding 11 times. China has demonstrated its digital capability through the smooth adoption of digital payments in everyday life.

One in three of the 262 unicorns—startups valued at more than $1 billion—in the world are based in China. These Chinese unicorns are valued at 43% of what similar companies are worth globally, indicating their influence on the world’s innovation scene. Their inventions include robots, artificial intelligence, 3-D printing, self-driving cars, and virtual reality.

China’s digital economy is not merely about computational power; it symbolizes the nation’s unwavering commitment to innovation and progress. As China continues to lead in scientific breakthroughs, industrial advancements, and data-driven solutions, we anticipate exciting developments across sectors—from climate modeling to drug discovery.

In summary, China’s digital economy stands as a testament to its vision, resilience, and ability to harness technology for the benefit of its people and the world.

Shayne Heffernan

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By Shayne Heffernan Ph.D.
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Shayne Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 40 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.
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