Shanxi province in North China has considered the digital economy as the core engine for industrial transformation in recent years. 

Digitization involves using digital technologies to establish related models and management. It can reduce the construction and operation costs of factories, hospitals, schools, construction sites, and more. 

In the manufacturing sector, digitization improves design and production efficiency. Meanwhile, enhanced digital services, such as mobile applications offering shopping, live streaming, and payment services, provide diverse and convenient experiences for users. 

In July 2022, the Shanxi provincial government set a target that by 2025 the added value of the core industries in its digital economy will account for 5.4 percent of regional GDP. 

Last November, Shanxi approved a plan for the comprehensive development of the digital economy in 2022-25. This established a timetable and roadmap for accelerating industrial digitization and digital governance across the province. 

Starting from Jan 1, 2023, the "Shanxi Digital Economy Promotion Regulation" has been implemented, which cements legal guarantees for promoting the high-quality integration of digital and economic development. 

The Shanxi Digital Transformation Promotion Center has also recruited 334 industry experts in the digital economy from both inside and outside the province to provide consulting services and intellectual support for companies. 

Special research has been conducted to address the difficulties encountered by local governments and enterprises in the process of promoting digital transformation, and targeted suggestions have been proposed. 

So far, Shanxi has built more than 82,000 5G base stations. The digitalization rate of key processes in industrial enterprises above a designated size – those with annual sales revenue of more than 20 million yuan ($2.78 million) – has reached 60.0 percent, ranking 13th nationwide. Eight industrial internet identification resolution secondary nodes in the province have also been connected to national top-level nodes.

Meanwhile, industry experts and digital transformation consulting agencies have conducted research and surveys on more than 10 occasions, and have compiled a professional guide for the construction of a digital transformation system.

This year, Shanxi aims to achieve a 15 percent increase in the added value growth rate of core industries in the digital economy, and incubate one to three national pilot demonstration enterprises to boost the development of the data industry.