Chinese Academy of Cyberspace Studies

Chinese Academy of Cyberspace Studies
World Internet
Development
Report 2021
Blue Book for World Internet Conference
Translated by CCTB Translation Service
World Internet Development Report 2021
World Internet Development

Report 2021
Blue Book for World Internet Conference
Translated by CCTB Translation Service

Beijing, China
ISBN 978-981-19-9322-0 ISBN 978-981-19-9323-7 (eBook)

https://doi.org/10.1007/978-981-19-9323-7
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Preface
The world undergoes great changes that have not been seen in a century, which
accelerated and complicated international environment in 2021. Unilateralism and
protectionism continued to proliferate. Globally, the COVID-19 pandemic proved a
protracted one and the virus mutated frequently. The prevention and control of the
pandemic presented a grim picture, and the recovery of world economy remained in
the doldrums. Global industrial chain and supply chain were reshaped, with insta-
bility and uncertainty significantly rising. Major countries in the world quickened
digital transformation, and digital economy expanded against headwinds, signaling a
stage of fast development of digital economy. This year, we compile World Internet
Development Report 2021 (hereinafter referred to as “the Report”) to review and
investigate world Internet development, represent the status quo of world Internet
development, and analyze the trends of world Internet development in an objective
way.
(1) The Report tallies with global practice of the idea or proposition of building
“a community with a shared future in cyberspace”. Chinese President Xi Jinping
puts forward the idea or proposition of building “a community with a shared future
in cyberspace”, which highlights high concern for common well-being of mankind,
expresses common expectations of international community, and is becoming an
international consensus. Presently, promoting the reform of a global Internet gover-
nance system, as a significant topic that arouses worldwide concern, has been univer-
sally acknowledged and vigorously supported. During the compilation of the Report,
we uphold President Xi Jinping’s idea or proposition of building “a community with
a shared future in cyberspace”, display joint efforts of countries to curb the abuse
of information technology and combat cyberattacks, and demonstrate the status quo
of world Internet development as well as the beautiful vision of people of all coun-
tries for Internet development, hoping to jointly build cyberspace into a community
for development, a community for security, a community for responsibility, and a
community for common interests that benefits all mankind.
(2) The Report scrutinizes the trends of world Internet development and
mirrors new measures and progress in Internet construction in various coun-
tries. The Report shows the characteristics of world Internet development. Over the
v
vi Preface
past year, international order of cyberspace was reshaped rapidly, and the layout of
key areas was accelerated, in which the formulation of international digital rules
became a central issue in international competition and game. The construction of
digital government steadily advanced, and “combating the pandemic with digital
technology” became top priority of digital management and services of governments.
The convergence of Internet media formed a prominent trend, and the construction
of cybersecurity intensified, with the investment to network infrastructure increased.
World rule-of-law construction in cyberspace sped up. Major countries and regions
in the world successively introduced a series of laws, regulations, and policy docu-
ments on supply-chain security, data security, and personal information protection,
which continuously augmented antitrust regulation against platform.
(3) The Report strives to illustrate new landscape and features of world
Internet development in a comprehensive, accurate, and objective manner.
Focusing on the status quo and trend of world Internet development, the Report
optimizes the index system of world Internet development and systematically eval-
uates Internet development in 48 representative countries in five continents from six
dimensions, i.e., infrastructure, innovation capacity, industrial development, Internet
application, cybersecurity, and cyberspace governance. The Report deeply analyzes
the highlights in eights aspects, i.e., information infrastructure, information tech-
nology, digital economy, digital government, Internet media, cybersecurity, and rule-
of-law construction in cyberspace and international cyberspace governance, in a bid
to reflect new circumstances, problems, and requirements of Internet development
in major countries in the world more comprehensively, accurately, and objectively.
The Report truthfully records the progress of world Internet development. In the
future, we will attach more attention to the trend of world Internet development and
contribute Chinese wisdom to facilitating the construction of “a community with a
shared future in cyberspace”.
Beijing, China Chinese Academy of Cyberspace

August 2021 Studies (CACS)
Contents
1 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 World Internet Development in 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1.1 The Construction of Network Infrastructure
Accelerates, with the Investment to Network
Infrastructure Increased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1.2 The Innovation on Digital Technology Continues
to Advance, with Consensus on Technology Governance . . . 3
1.1.3 Global Digital Economy Grows Against Headwinds
and the Layout of Key Fields Accelerates . . . . . . . . . . . . . . . . 5
1.1.4 The Construction of Digital Government Steadily
Progresses, with Emphasis on Collaboration
in Combating the COVID-19 Pandemic . . . . . . . . . . . . . . . . . 6
1.1.5 Internet Media Convergence Forms a Trend
and Algorithmic Regulation Intensifies . . . . . . . . . . . . . . . . . . 7
1.1.6 Cybersecurity Risks Keep Rising, and Supply-Chain
Security and Data Security Arouse Widespread Concern . . . 9
1.1.7 The Rule-of-Law Construction in Cyberspace
Incessantly Accelerates and Antitrust Regulation
Continuously Intensifies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.1.8 International Competition on Digital Rule-Making
Is Fierce and International Order in Cyberspace Is
Rapidly Reshaped . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
1.2 Internet Development in Representative Countries . . . . . . . . . . . . . . . 12
1.2.1 Index Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.2.2 GIDI System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.2.3 Analysis of Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.3 Internet Development in Representative Countries and Regions . . . 31
1.3.1 The United States Continues to Take the Lead
in the World in Internet Comprehensive Strength . . . . . . . . . 31
1.3.2 Internet Development in China Comes to the Stage
of Enhancing Quality and Improving Efficiency . . . . . . . . . . 35
vii
viii Contents
1.3.3 The United Kingdom Takes the Lead in Cybersecurity

Strength . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
1.3.4 Japan Accelerates the Construction of Digital Society . . . . . 39
1.3.5 Internet Application in India Develops Rapidly . . . . . . . . . . . 40
1.3.6 Russia Makes Steady Progress in Internet Development . . . 41
1.3.7 Vietnam Sees Fast Development of Internet Economy . . . . . 43
1.3.8 In Latin America, Mexico Enjoys Rapid Internet
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
1.3.9 Kenya Takes the Lead in Africa in Internet Strength . . . . . . . 45
1.4 Trends in World Internet Development . . . . . . . . . . . . . . . . . . . . . . . . . 47
1.4.1 The Competition on Digital Infrastructure Intensifies
and Necessitates Deeper Interconnectivity . . . . . . . . . . . . . . . 48
1.4.2 Digital Transformation Progresses Quickly in Various
Countries and Necessitates Common Prosperity . . . . . . . . . . 48
1.4.3 Cross-cultural Communication Encounters New
Challenges and Necessitates Exchanges and Mutual
Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
1.4.4 The Militarization of Cybersecurity Accelerates
and Necessitates the Orderly Development
of Cyberspace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
1.4.5 Trust Deficit in Cyberspace Enlarges and Necessitates
the Realization of Fairness and Justice . . . . . . . . . . . . . . . . . . 51
2 World Information Infrastructure Construction . . . . . . . . . . . . . . . . . . . 53
2.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
2.2 The Evolution and Upgrading of Communication Network
Infrastructure Accelerate in an All-Round Way . . . . . . . . . . . . . . . . . 54
2.2.1 5G Development Comes to a New Stage . . . . . . . . . . . . . . . . . 54
2.2.2 Fixed Broadband Network Enters the Optical-Fiber Era . . . . 55
2.2.3 The Popularization and Deployment of IPv6 Accelerate . . . 55
2.2.4 The Deployment of Space-Air-Ground Integrated
Network (SAGIN) Speeds Up . . . . . . . . . . . . . . . . . . . . . . . . . . 56
2.3 Competition in Computing Infrastructure Increasingly
Intensifies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
2.3.1 Cloud Computing Plays a Crucial Role in Computing
Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
2.3.2 Data Centers Become Important Computing
Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
2.3.3 Edge Computing Becomes Indispensable Infrastructure . . . . 59
2.3.4 The Market Scale of High-Performance Computing
Continues to Enlarge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
2.4 Global Deployment of New-Technology Infrastructure
Quickens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
2.4.1 AI Becomes New Infrastructure that Guides
Intelligent Revolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Contents ix
2.4.2 Blockchain Plays a Decisive Role in the Strategic

Competition Among Great Powers . . . . . . . . . . . . . . . . . . . . . 61
2.4.3 The Deployment of Global Quantum-Communication
Backbone Network Accelerates . . . . . . . . . . . . . . . . . . . . . . . . 63
2.5 The Construction of Application-Oriented Infrastructure
Makes Haste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
2.5.1 The Construction of IoT Infrastructure Quickens . . . . . . . . . 64
2.5.2 The Application of Industrial Internet Extends
and Deepens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
2.5.3 The Deployment of Global Internet of Vehicles (IoV)
Accelerates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
3 World Information Technology Development . . . . . . . . . . . . . . . . . . . . . 69
3.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.2 Basic Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
3.2.1 High-Performance Computing Moves Towards an Era
in Which Performance and Energy-Consumption Are
Taken into Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
3.2.2 Chip Manufacturing Process is Upgraded Iteratively
and the Production Capacity Needs to Be Improved . . . . . . . 72
3.2.3 Traditional Industrial Pattern of Software Technology
Steadily Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
3.2.4 The Ecology of New Open-Source Technologies
Constantly Improves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
3.3 Cutting-Edge Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
3.3.1 AI Continues to Develop and Algorithm
and Computing Power Continue to Improve . . . . . . . . . . . . . . 84
3.3.2 Cloud Native Technology Gradually Matures . . . . . . . . . . . . 87
3.3.3 Quantum Information Technology Is Deeply Explored . . . . . 89
3.4 New Technologies and New Applications . . . . . . . . . . . . . . . . . . . . . . 93
3.4.1 The R&D of New Drugs Speeds Up with the Help of AI . . . 93
3.4.2 L3 Scene of Automated Driving Is Progressively Piloted . . . 94
3.4.3 The Implementation of Digital Twin Is Accelerated
Conceptually and Technologically . . . . . . . . . . . . . . . . . . . . . . 95
4 World Digital Economy Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
4.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
4.2 The Development Trend of Global Digital Economy . . . . . . . . . . . . . 98
4.2.1 Countries Actively Promote the Strategic Layout
in Cutting-Edge Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
4.2.2 The Development Pattern Basically Remains Stable . . . . . . . 100
4.2.3 Internet Enterprises Develop Rapidly . . . . . . . . . . . . . . . . . . . 101
4.2.4 The Investment in Digital Economy
Increases Significantly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
4.2.5 Global Digital Trade Grows Against Headwinds . . . . . . . . . . 104
x Contents
4.2.6 Digital Economy Helps to Fight the COVID-19

Pandemic Globally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
4.3 Digital Industrialization Develops Steadily . . . . . . . . . . . . . . . . . . . . . 105
4.3.1 Basic Telecommunications Industry Forges Ahead
in a Stable Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
4.3.2 Electronic Information Manufacturing Industry
Advances Steadily . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
4.3.3 Software and Information Technology Service
Industry Develops Quickly . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
4.3.4 Internet Information Content Service Industry Grows
Against Headwinds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
4.4 Industrial Digitalization Continues to Deepen . . . . . . . . . . . . . . . . . . . 112
4.4.1 The Digitalization of Manufacturing Industry Further
Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
4.4.2 The Digitalization of Service Industry Accelerates . . . . . . . . 113
4.4.3 Agricultural Digitalization Advances Steadily . . . . . . . . . . . . 114
4.5 The Pace of Fintech Innovation Accelerates . . . . . . . . . . . . . . . . . . . . 114
4.5.1 Blockchain Finance Presents a Trend of Steady
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
4.5.2 AiFinance Faces Both Opportunities and Challenges . . . . . . 115
4.5.3 Digital Currency Flourishes . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
4.6 E-Commerce Maintains a Trend of High-Speed Development . . . . . 116
4.6.1 The Market Scale Continues to Rise . . . . . . . . . . . . . . . . . . . . 116
4.6.2 The Competition Pattern Becomes More Stable . . . . . . . . . . . 117
4.6.3 Cross-Border E-Commerce Develops Rapidly . . . . . . . . . . . . 118
5 World Digital Government Development . . . . . . . . . . . . . . . . . . . . . . . . . 121
5.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
5.2 The Evaluation and Development of World Digital Government . . . 121
5.2.1 Comprehensive E-Government Evaluation . . . . . . . . . . . . . . . 122
5.2.2 The Construction of Infrastructure . . . . . . . . . . . . . . . . . . . . . . 123
5.2.3 Open Government Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
5.2.4 Online Governmental Services . . . . . . . . . . . . . . . . . . . . . . . . . 126
5.2.5 Digital Integration and Participation . . . . . . . . . . . . . . . . . . . . 128
5.2.6 Data Security and Privacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
5.3 Innovative Practice of Digital Government in the Outbreak
of the COVID-19 Pandemic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
5.3.1 From Integrated Platform Information Disclosure
to Multi-platform Information Sharing . . . . . . . . . . . . . . . . . . 133
5.3.2 From Basic Services of Mobile Applications to Data
Monitoring Based on User’s Willingness . . . . . . . . . . . . . . . . 134
5.3.3 From Technological Plug-Ins to Multi-scene
Applications of Smart Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
5.4 New Trends in the Construction of Digital Government . . . . . . . . . . 136
5.4.1 Regional Cooperation Further Deepens . . . . . . . . . . . . . . . . . . 137
Contents xi
5.4.2 Local Governments Become E-Government Entities

that Play a More Active Role . . . . . . . . . . . . . . . . . . . . . . . . . . 137
5.4.3 “Personal Information Protection” Becomes a New
Domain that Plays an Increasingly Important Role . . . . . . . . 138
6 World Internet Media Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
6.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
6.2 The Development Landscape of World Internet Media . . . . . . . . . . . 141
6.2.1 Traditional Social Media Platforms . . . . . . . . . . . . . . . . . . . . . 142
6.2.2 Emerging Digital Media Platforms . . . . . . . . . . . . . . . . . . . . . 143
6.3 Hot Topics in World Internet Media . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
6.3.1 The “Centenary of the Communist Party of China”
Arouses Media Attention Worldwide . . . . . . . . . . . . . . . . . . . . 144
6.3.2 “Carbon Neutrality” Becomes a Central Issue
in World Internet Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
6.3.3 “China Example of Poverty Alleviation
and Governance” Evokes Worldwide Concern
in the Public Opinion on the Internet . . . . . . . . . . . . . . . . . . . . 145
6.3.4 The Conflict that Arises from “Vaccine Nationalism”
Becomes Prominent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
6.4 The Governance and Regulation of World Internet Media . . . . . . . . 148
6.4.1 The Antitrust Regulation on Social Media is Upgraded . . . . 148
6.4.2 The Scramble for Traffic Between Social-Media
Platforms and Traditional Journalism Intensifies . . . . . . . . . . 149
6.4.3 The Legal Regulation Against Algorithmic
Discrimination is Promoted . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
6.5 Trends in the Technological Development of World
Internet Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
6.5.1 Online Conference Catalyzes the New Normal
of Cloud Connection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
6.5.2 Audio Social Media Face Both Opportunities
and Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
6.5.3 The Transformation of Film and Television Industry
into Streaming Media Accelerates . . . . . . . . . . . . . . . . . . . . . . 155
7 World Cybersecurity Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
7.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
7.2 Cybersecurity Threats Continue to Evolve . . . . . . . . . . . . . . . . . . . . . 158
7.2.1 Typical Trends in Cybersecurity Risks and Threats . . . . . . . . 158
7.2.2 Trends in Cybersecurity Threats in Key Sectors . . . . . . . . . . 160
7.3 Various Countries in the World Continue to Improve
the Formulation of Cybersecurity Policies . . . . . . . . . . . . . . . . . . . . . . 161
7.3.1 The Formulation of Cybersecurity Policies: A Survey . . . . . 162
7.3.2 Key Layout of Cybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . 163
7.4 The Innovation and Development of Cybersecurity Technology . . . 166
xii Contents
7.4.1 Cyber Resilience Becomes a Buzz Word in the Field

of Cybersecurity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
7.4.2 New Practices on Exploring Data Privacy Protection . . . . . . 167
7.4.3 New AI Attack Means . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
7.5 Cybersecurity Industry Develops Steadily . . . . . . . . . . . . . . . . . . . . . . 168
7.5.1 Global Cybersecurity Industry Maintains a Stable
Growth Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
7.5.2 Cybersecurity Services Occupy a Dominant
Market Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
7.5.3 Venture Capital to Cybersecurity Industry Hits a New
Record High . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
7.6 The Cultivation of Cybersecurity Talents . . . . . . . . . . . . . . . . . . . . . . . 170
7.6.1 The Gap in Cybersecurity Talents Presents
a Narrowing Trend for the First Time . . . . . . . . . . . . . . . . . . . 171
7.6.2 The Skills of Cybersecurity Talents Are Constantly
Improved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
8 World Rule-of-Law Construction in Cyberspace . . . . . . . . . . . . . . . . . . 173
8.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
8.2 Cybercrime Paints a Grim Picture and Law-Enforcement
in Cyberspace Governance Arouses Wide Attention . . . . . . . . . . . . . 174
8.2.1 Cyber Law-Enforcement Continues to Improve
and New Law-Enforcement Departments Come to Rise . . . . 174
8.2.2 Priority Is Given to Content Review and Platform
Review is Strengthened . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
8.2.3 Transnational Crimes Continue to Increase
and International Transnational Law-Enforcement
Gets Under Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
8.2.4 With the Threat to the Vulnerable Groups,
the Protection of Children’s Rights and Interests
Becomes the Central Issue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
8.3 The Awareness of Cyber Sovereignty Is Enhanced
and the Rule-of-Law Protection of Cyber Sovereignty Is
Strengthened . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
8.3.1 Cybersecurity Risk Is Continuously Aggravated
and the Awareness of Cyber Sovereignty is
Significantly Improved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
8.3.2 Data-Security Risks Multiply and Legal-Protection
Forms Diversify . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
8.3.3 Discourse Power in Cyberspace Becomes More
Important and the Game on International Cooperation
Continues in Cyberspace Governance . . . . . . . . . . . . . . . . . . . 182
8.4 The Competition in Cyber Economy Intensifies
and Cyber-Platform Governance Becomes a Major Field . . . . . . . . . 183
Contents xiii
8.4.1 Cyber Economy Thrives and the Legislation

on Antitrust Against Platform Continually Strengthens . . . . 183
8.4.2 Employees in Cyber Economy Balloon,
with the Employment Responsibility of Platform Put
on the Agenda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
8.4.3 The Rights and Interests of Network Users Are
Damaged and the Accountability of Platform Tort Is
Gradually Conducted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
8.5 Emerging Technologies Empower Network Industry,
with Security Measures Timely Following up . . . . . . . . . . . . . . . . . . . 186
8.5.1 Faced with the Misuse of Biometric Information,
the Legislation on Information Protection Makes
Positive Response . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
8.5.2 Algorithm Push Endangers Privacy
and Algorithm-Governance System Gradually Improves . . . 187
8.5.3 The Application of Blockchain Enlarges and Industrial
Regulatory System Takes Effect . . . . . . . . . . . . . . . . . . . . . . . . 188
9 International Cyberspace Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
9.1 Outline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
9.2 Main Features of Annual International Cyberspace Governance . . . 190
9.2.1 Under the Normalization of Pandemic Prevention
and Control, the Demand for Digital Development
and Governance Surges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
9.2.2 Geopolitics Catalyzes and Enlarges New Digital Divide . . . 191
9.2.3 Technological Politicization Threatens Supply-Chain
Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
9.2.4 Green Digital Cooperation Invigorates International
Cyberspace Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
9.3 New Progress in International Cyberspace Governance . . . . . . . . . . . 194
9.3.1 The Formulation of International Rules in Cyberspace
Continues to Advance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
9.3.2 Global Digital Currency Accelerates Twin-Track
Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
9.3.3 Digital Tax Administration Forms a Trend . . . . . . . . . . . . . . . 196
9.3.4 Data Governance Is Actively Promoted . . . . . . . . . . . . . . . . . . 197
9.3.5 Platform Governance Continuously Deepens . . . . . . . . . . . . . 197
9.3.6 AI Governance Arouses Wide Attention . . . . . . . . . . . . . . . . . 198
9.3.7 Various Parties Strive to Bridge the Digital Divide . . . . . . . . 199
9.4 Cyberspace Governance in Some Representative Countries
and Regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
9.4.1 China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
9.4.2 The United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
9.4.3 Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
9.4.4 The European Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
xiv Contents
9.4.5 Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206

9.4.6 France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
9.4.7 The United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
9.4.8 Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
9.4.9 South Korea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Postscript . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Chapter 1
Overview
Today, the world is undergoing changes that have not seen in a century. The COVID-
19 pandemic has a far-reaching impact on humans, IT revolution evolves rapidly,
and digital economy thrives. These deeply alter the mode of human production and
life and affect the socioeconomic development of various countries, the construc-
tion of global governance systems and the evolution of human civilization. In the
past year, a new-round scientific and technological revolution and industrial trans-
formation accelerated, and the innovation on digital technology achieved break-
throughs in many fields. In traditional economy, the digital transformation of indus-
trial models quickened. Production factors, organizational forms and competitive
paradigms continued to evolve, with global industrial division systems further reor-
ganized. Digital economy served as an important choice for countries in the world to
hedge against the impact of the COVID-19 pandemic and speed up socioeconomic
transformation. Countries in the world accelerated the layout of new-type infras-
tructure. New-type information infrastructure represented by 5G, AI, IoT, industrial
Internet and satellite Internet turned to be new momentum for global economic
growth. Major countries strived to strengthen the R&D capability of cutting-edge
technologies, organize technological alliances, and formulate technological rules, so
as to forge dominant position in cyberspace development. Social media remained
active. Some countries continuously enhanced content governance and energeti-
cally combated false information. Besides, various countries in the world vigorously
promoted the construction of cybersecurity-guarantee capacity, constantly enhanced
rule-of-law construction in cyberspace, and fortified data security and personal infor-
mation protection, which produced remarkable progress in international cyberspace
governance.
Noticeably, global trade protectionism emerges and unbalanced development
among countries deteriorates. New technological barriers and the pandemic coalesce,
which enlarges digital divide, employment crisis and the gap between the rich and
the poor. Threats to cybersecurity become prominent, and targeted or organized
cyberattacks paint a grim picture. International order in cyberspace is reshaped fast.
© Publishing House of Electronics Industry 2023 1

Chinese Academy of Cyberspace Studies,
World Internet Development Report 2021,
https://doi.org/10.1007/978-981-19-9323-7_1
2 1 Overview
In the arena, the debate over data security, platform governance, technology gover-
nance and supply-chain security continues to heat up. Confronted with the instability
and uncertainty of cyberspace development, various countries should act with the
trends of the times, undertake the responsibility of development, address risks and
challenges together, promote global cyberspace governance, and build cyberspace
into a community for development, a community for security, a community for
responsibility, and a community for common interests that benefits all mankind.
1.1 World Internet Development in 2021
1.1.1 The Construction of Network Infrastructure

Accelerates, with the Investment to Network
Infrastructure Increased
Now, human society sees new-round scientific and technological revolution and
industrial transformation. Featuring ubiquity, integration and intelligence, new-type
infrastructure represented by 5G, IoT, industrial Internet and satellite Internet func-
tions as new driving force for global economic growth. Over the past year, the evolu-
tion and upgrading of global communication network infrastructure accelerated,
and fixed broadband network advanced from the fiber-to-the-home to the Gigabit
era of optical connectivity. By the end of 2020, the number of fixed broadband
connection in the world had reached 1.18 billion.1 By the end of May 2021, 443
telecom operators in 133 countries and regions had invested in 5G, of which 169
telecom operators in 70 countries and regions launched 5G commercial services.2
The popularization and deployment of IPv6 quickened, and industrial giants like
SapceX, OneWeb and Amazon promptly promoted the construction of satellite
Internet. The competition on computing infrastructure became fierce. Global cloud
computing developed fast. Data center, edge-computing platform and supercom-
puting center served as important computing infrastructure. Globally, the deployment
of emerging-technology infrastructure sped up, and major countries and regions in the
world successively adopted AI strategies. Taking data, algorithm, computing power
and platform as core elements, AI infrastructure resources received wide attention.
Blockchain was applied to distributed use cases that called for cross-regional, cross-
industrial and cross-filed collaboration. Major countries stepped up the implementa-
tion of long-distance quantum communication trunk-line projects. The construction
of application-oriented infrastructure developed quickly. The deployment of global
commercial cellular-IoT network continually expanded, the construction of indus-
trial Internet achieved positive progress, the construction of core infrastructure like
1 Data Source: The report of Point Topic, a market research firm.

2 Data Source: Global mobile Suppliers Association (GSA).
1.1 World Internet Development in 2021 3
network facilities and identification and resolution systems accelerated, and Internet
of Vehicles (IoV) entered the “fast lane”.
As governments in the world commonly recognize, the construction of network
infrastructure means an important support for robustly enlarging effective demand
and effectually addressing the economic downturn under the impact of the COVID-
19 pandemic. For example, Russia releases The Roadmap for the Development of
Quantum Communication in Russian Federation3 to quicken the development of
quantum communication technology and IoT. The European Union publishes 2030
Digital Compass: The European Way for the Digital Decade,4 which proposes to
build a safe, high-performance and sustainable digital infrastructure, via which
people can obtain affordable, safe and high-quality network connections. Simul-
taneously, some countries intentionally create digital barriers, restrict or prohibit
foreign digital hardware device and software service providers from doing business
in domestic markets, and curb normal market behaviors of corporations with tech-
nological advantages. These actions impede international cooperation in digital area
and infrastructure construction conducted among countries based on mutual trust
and cause the new digital divide.
1.1.2 The Innovation on Digital Technology Continues

to Advance, with Consensus on Technology Governance
Information industry plays a dominant role in global economic development. Digital

technologies like semiconductor, big data, IoT and AI come to the stage of tech-
nological explosion, with breakthroughs in digital-technology innovation. In the
past year, the level of high-performance computing steadily improved. New-type
heterogeneous-architecture-based supercomputing can integrate performance with
environmental protection. The chip process was upgraded iteratively, with main-
stream chip products reaching 7 nm process. The monopolistic pattern of computing
chips remained prominent, global leading corporations dominated the R&D of
computing chips, and 3D NAND technology of memory chips signaled a new
development direction of NAND Flash. The continuous shortage of chip manu-
facturing capacity resulted in short supply, higher price and longer delivery time
of a variety of chips. Therefore, various countries laid stress on developing chip
manufacturing capacity, with the development pattern of integrated circuits signif-
icantly adjusted. Traditional patterns of software technology changed steadily, and
operating systems displayed a trend of cross-platform and cross-field development.
3 Cankaoxiaoxi.com: “Russian Experts: Russia Is Investigating China’s Experience in Establishing

Quantum Communication System”, March 2, 2021, http://www.cankaoxiaoxi.com/science/202
10302/2436210.shtml.
4 Science and Technology Daily: “‘Digital Compass’ May Lead European Way for the Digital
Decade”, March 15, 2021, http://digitalpaper.stdaily.com/http://www.kjrb.com/kjrb/html/2021-03/

15/content_464170.htm.
4 1 Overview
“Micro kernel + modular design” formed a new fashion, IoT operating systems
diversified, and industrial software featured platform-based, cloud service-based and
low code-based development. Global open-source-technology ecology developed at
a high speed. A series of software or hardware products in emerging technology,
e.g. AI, cloud computing and big data, took open-source ecology as a major devel-
opment path. RISC-V kindled an upsurge for open-source hardware and open chip
design. In the cutting-edge fields, AI algorithms in computer vision, natural language
processing and other fields continued to innovate iteratively, and AI chips served as
the underlying structure that supported AI-technology industry. Cloud native tech-
nology matured and accelerated the construction of new-type infrastructure. Various
technological routes of quantum communication paralleled. The theoretical frame-
work as well as R&D and application of quantum measurement took shape, with
significant progress in exploring quantum application. New technologies and appli-
cations came to rise. The R&D of new drugs accelerated with the aid of AI, automatic
driving entered the pilot of L3 use case, and digital twin technology turned to reality
in a fast way.
With the rise of new-generation AI technology in the world, to effectively govern
AI becomes a key topic that arouses widespread concern in international community.
Countries actively increase their investment to boost technological innovation and
development, strengthen the governance of AI and other technologies, and facili-
tate the orderly development of technological norms. In January 2021, the United
Nations published an article, calling on all countries in the world to be vigilant
against the negative consequences of using AI technologies, such as bias, racism and
false information.5 In March 2021, the European Union officially established the
European Innovation Council (EIC), which planned to invest more than 10 billion
euros from 2021 to 2027. In this way, EU member states can make more innova-
tions or breakthroughs in self-perception AI and other fields.6 In April 2021, the
European Commission unveiled the proposal of Artificial Intelligence Act and took
different regulatory measures for AI systems at different risk levels in different use
cases.7 In June 2021, the United States launched Innovation and Competition Act
of 2021, which increased investment in AI, semiconductor, biotechnology, quantum
computing, advanced communications and advanced energy, so as to strengthen
America’s leading technological advantages.
5 UN News: “Bias, Racism and Lies: Facing up to the Unwanted Consequences of AI”, January 4,
2021, https://news.un.org/zh/story/2021/01/1075032.
6 Science and Technology Daily: “Newly-Founded European Innovation Council (EIC) Focuses
on Breakthrough Technologies”, March 22, 2021, http://digitalpaper.stdaily.com/http://www.kjrb.

com/kjrb/html/2021-03/22/content_464564.htm.
7 Xinhua News Agency: “The European Commission Proposes A Legal Framework on AI”, April
21, 2021, http://www.xinhuanet.com/tech/2021-04/22/c_1127360875.htm.

1.1.3 Global Digital Economy Grows Against Headwinds

and the Layout of Key Fields Accelerates
For major countries in the world, digital economy means an important choice to
hedge against the impact of the COVID-19 pandemic and speed up socioeconomic
transformation. In the past year, the integration of the global digital economy and real
economy deepened, and digital industrialization advanced steadily. Basic telecom-
munications industry kept improving. As IDC predicted, in 2021, global expendi-
ture on telecommunications service would total 1.54 trillion U.S. dollars.8 Elec-
tronic information manufacturing progressed stably, IT service industries like big
data, AI and blockchain maintained high-speed development, and Internet informa-
tion content service industry grew against headwinds. Industrial digitization played
a crucial role in boosting global digital economy. The digitization of manufac-
turing further deepened. Major countries actively implemented the strategy of “Re-
industrialization”, regarded new-generation IT as a key element in reshaping the
competitive advantage of industrial chain, and promoted the deep integration of
digital technology and manufacturing systems.
Agricultural digitization develops steadily. In 2020, the scale of global smart agri-
culture market achieved c. 13.8 billion U.S. dollars,9 with agricultural robots exten-
sively used. The digitization of service industry accelerates, and online education and
online medical markets grow fast. In 2020, the scale of global online education market
exceeded 250 billion U.S. dollars,10 and the scale of online medical market reached
around 152.4 billion U.S. dollars.11 Fintech thrives. Various countries successively
deploy digital currencies. According to the latest survey report of Bank for Interna-
tional Settlements, around 86% of central banks in 65 countries or economies studied
digital currency, and the proportion of central banks that tested digital currency or
conducted POC (proof of concept) increased from 42% in 2019 to 60% in 2020.12
E-commerce advances against headwinds and becomes an economic driving force to
foster domestic growth and international trade. Cross-border e-commerce functions
as a new growth point to stabilize foreign trade. In 2020, global e-commerce sales
amounted to 428 million U.S. dollars.13
Countries launch strategic measures to quicken digital economy growth. Lashed
by the COVID-19 pandemic, global economic output dropped by 4.3% in 2020,
marking the most significant recession since the Great Depression.14 Various coun-
tries prioritize digital economy in their development strategies, enthusiastically
8 Data Source: IDC: Worldwide Semiannual Telecom Services Tracker.

9 Data Source: Markets and Markets.
10 Data Source: Grand View Research. Inc.
11 Data Source: Global Industry Analysts.Inc.
12 Data Source: White Paper on the Progress of Research & Development of E-CNY in China
published by the People’s Bank of China on July 16, 2021.

13 Data Source: eMarketer.
14 Data Source: World Economic Situation and Prospects published by the United Nations on
January 25, 2021.

6 1 Overview
promote digital legislation, deploy cutting-edge fields, and further the normal and
innovative development of digital economy. Since 2020, the United States has issued
Federal Data Strategy 2020 Action Plan, Pioneering the Future Advanced Computing
Ecosystem: A Strategic Plan and other strategies to ensure America’s leading role in
the world. The European Union releases Shaping Europe’s Digital Future, A Euro-
pean Strategy for Data, A New Industrial Strategy for Europe and 2030 Digital
Compass: the European Way for the Digital Decade to accelerate the digital trans-
formation of Europe. In the meantime, as antitrust against platform becomes a world-
wide issue, various countries enhance antitrust against platforms. In December 2020,
the European Union published Digital Markets Act (Draft), which reinforced the
prior supervision of large-scale digital platforms and required platforms to notify
the mergers and acquisitions in advance. In June 2021, the United States launched a
number of proposals of antitrust acts, such as Ending Platform Monopolies Act, Plat-
form Competition and Opportunity Act and The American Innovation and Choice
Online Act. These acts meant a major change to existent antitrust legislation in the
United States.
1.1.4 The Construction of Digital Government Steadily

Progresses, with Emphasis on Collaboration
in Combating the COVID-19 Pandemic
The construction of global digital government has been widely actualized. Major
countries on a global scale successively carry out digital government strategies and
center on infrastructure construction, open public data, online government services
and citizen’s digital participation in their construction of digital government. Over
the past year, many countries continuously furthered the construction of govern-
ment informatization, government cloud platforms and data center systems, in order
to enhance the swift deployment and resilient expansion of government informa-
tion systems. 5G network was the central work in the construction of government
infrastructure in various countries. Open data was widely recognized among coun-
tries. The number of countries that established OGD (open government data) portals
jumped from 46 in 2014 to 153 in 2020.15 The coverage of online services continued
to enlarge, and the service level significantly improved. As the data of UN E-
Government Survey 2020 evidenced, the number of countries that provided at least
one online-affair service increased from 140 in 2018 to 162 in 2020, up by 16%.
Simultaneously, various countries constantly optimized the functions of national
portals, which evolved from integrated platform information disclosure to multi-
platform information sharing. Nearly 90% of surveyed countries had e-government
portals, with one-stop services, social-networking platforms and feedback-option
interactive design. Countries played an active role in providing online services for
15 Data Source: UN E-Government Survey 2020 released by the United Nations on July 10, 2020.
vulnerable groups such as women, immigrants, the elderly, the disabled and the poor
to strengthen public digital participation.
Governments of various countries and regions voluntarily deepen cooperation
and jointly promote the prevention and control of the COVID-19 pandemic. Now,
“combating the pandemic with digital technology” becomes top priority of digital
management and services of governments. The outbreak of the COVID-19 pandemic
strikes traditional offline governance models and means, and information technology
becomes an important way for governments to prevent and control the pandemic
and provide services. As UN E-Government Survey 2020 demonstrated, by May
13, 2020, c. 97.5% of countries released information on the COVID-19 pandemic
on their official websites.16 In the prevention and control of the pandemic, govern-
ments of various countries consolidated cooperation with non-governmental institu-
tions like private sectors and social organizations. Based on the national integrated
government service platform, Chinese government introduced “Health QR Code”
app, which helped enterprises’ resumption of work and production and raised the
modernization of national governance capacity and governance systems. Meanwhile,
many governments took the initiative in balancing the needs of pandemic prevention
and control and personal-privacy protection, which put spurs to the shift of basic
services of mobile applications to data monitoring based on users’ willingness.
1.1.5 Internet Media Convergence Forms a Trend

and Algorithmic Regulation Intensifies
Engulfed by the COVID-19 pandemic, global Internet media industry realizes growth
against headwinds by dint of cloud-connection advantages. In 2021, Internet media
technology continued to evolve iteratively, with a prominent trend of diversity
and multi-polarization in communication form and landscape. In the COVID-19
pandemic, mainstream news media served as the most effective and reliable channel
to access information. Media returned to public nature. Media like the European
Broadcasting Union as well as The Washington Post and The New York Times of the
United States cancelled the paid content and provided free pandemic information
services to global audiences. Public opinions and hot topics from global Internet
media diversified. Carbon neutrality, environmental protection and global poverty
alleviation and governance and the pandemic information evoked great attention
among global Internet media and triggered heated discussions from all parties. Social
media performed in an eye-catching way. Facebook, YouTube and Twitter remained
16Data Source: According to the survey of official websites of 193 United Nations member states
conducted in UN E-Government Survey 2020.
8 1 Overview
main public space for American and European citizens to discuss topics in rela-
tion to the COVID-19 pandemic. As the annual report of Facebook suggested,17
by December 2020, the average number of daily active users on Facebook reached
1.84 billion, with an increase of 11% year on year (over 2019). Short videos or
emerging digital media represented by TikTok are well received. In the first quarter
of 2021, TikTok topped the global App download list. The functions of social media
multiply and the transformation of service forms accelerates. Against the back-
drop of the pandemic, audio socializing represented by Clubhouse springs up, and
LinkedIn and other media expand their functions of audio socializing. In the COVID-
19 pandemic, traditional film and television industry was severely mauled, which
meant an opportunity for the development of emerging streaming-media platforms
and further promoted the transformation of traditional film and television industry
to the technology and business model of streaming media. In 2020, Netflix took the
lead in streaming media, whose subscription rose by 37 million and annual busi-
ness revenue totaled 25 billion U.S. dollars, with an increase of 24% year on year.
WarnerMedia, Disney and other film companies all transferred their film works to
their streaming media platforms. Film companies that had not established streaming-
media platforms adopted the dual strategy of delaying the release and selling films
to streaming-media platforms.
In response to problems of capital’s manipulation over media and influence on
citizen values, various countries are strengthening the regulation of Internet media. In
the era of digital news, platform-based media nibble at the audience traffic and adver-
tising revenue of traditional journalism, which intensifies the scramble for traffic,
interests and power between social-media platform and traditional journalism. Faced
with the growing influence of Internet giants like Facebook, Google and Amazon,
the United States, the United Kingdom, France and Australia launch antitrust inves-
tigations and penalties to varying degree to balance the interests pattern. Algorithmic
discrimination and ethical anomie continue to emerge, and various countries tighten
up on legal regulation. According to the data of the U.S. National Conference of State
Legislatures (NCSL), by April 2021, 16 states in the United States had enacted rele-
vant laws to legally regulate AI technology and algorithm.18 The European Union
released Artificial Intelligence Act to regulate algorithmic discrimination and big
data-enabled price discrimination against existing customers, in order to seek a
balance between the benefits from algorithms and the protection of citizens’ rights
and interests.
17 Facebook Reports Fourth Quarter and Full Year 2020 Results, https://investor.fb.com/investor-
news/press-release-details/2021/Facebook-Reports-Fourth-Quarter-and-Full-Year-2020-Results/
default.aspx.
18 Data Source: NCSL, https://www.ncsl.org/research/telecommunications-and-information-tec
hnology/2020-legislation-related-to-artificial-intelligence.aspx.
1.1.6 Cybersecurity Risks Keep Rising, and Supply-Chain

Security and Data Security Arouse Widespread Concern
Cybersecurity means a global challenge, and no country can stay aloof from it.
International community must undertake the responsibility of safeguarding cyberse-
curity. In 2021, cybersecurity faced grimmer prospect. Large-scale targeted cyberat-
tacks crept up, with security vulnerability, data leakage, cyber fraud and ransomware
continuously upgraded and developed. SolarWinds Event as well as the blackmail
attack on the U.S. oil pipeline operator had a far-reaching impact. The innovation
on cybersecurity technology made new progress. Global well-known cybersecu-
rity corporations actively groped for cybersecurity-risk prevention capability repre-
sented by cyber resilience technology, data-privacy protection technology repre-
sented by security multi-party computing and new-technology security-risk preven-
tion represented by new AI attacks, so as to effectively address various cyberse-
curity threats. Global cybersecurity industry maintained stable growth. Cyberse-
curity service market occupied main market share, and cloud security became the
fastest-growing niche market in 2021. As relevant data of Gartner, a consulting firm,
predicted, in 2021, global expenditure on information security and risk-management
technology and service would rose to 150.4 billion U.S. dollars, by 12.4%. Venture
capital to cybersecurity industry hit a new record high with an investment of more
than 7.8 billion U.S. dollars19 and great development prospects. Various countries
put more efforts into developing cybersecurity talent teams, improving cybersecu-
rity skill training, and enlarging the demand for cybersecurity skills. Cybersecurity
industry shifted from a certification-based field to a skill-based field, and the gap in
cybersecurity talent presented a narrowing trend for the first time. According to the
research data published by (ISC)2 , or the International Information Systems Security
Certification Consortium, in June 2020, the number of cybersecurity posts rose to
3.5 million, yet the current gap in global cybersecurity talent reached 3.12 million.
Vis-à-vis 4.07 million in 2019, this betokened a decrease in the gap in cybersecurity
talent.
Facing increasingly complex and severe cybersecurity situation, various coun-
tries fortify significant strategic role of cybersecurity in national security, continu-
ally improve the strategic layout of cybersecurity, optimize cybersecurity policies
and strategies, and vigorously enhance supply-chain security, critical-information-
infrastructure protection, data security, personal-information protection and other
fields. The United States, the United Kingdom and other countries stress cybersecu-
rity as strategic priority. The European Union endeavors to build a credible cyberse-
curity system. African countries accelerate the formulation of cyberspace strategic
plans. The United States, the United Kingdom, Germany and Australia successively
launch relevant policies and measures to progressively realize supply-chain diver-
sification and independent controllable layout, and to promote the establishment
of a more resilient security-protection system for critical information infrastructure.
19 Data Source: Crunchbase, Cybersecurity Research Report 2021.

10 1 Overview
Data-security protection signifies a hot topic in annual global cyberspace security, on

which various countries issue a substantial number of policy and strategic documents.
Data security agencies of various countries continue to design and publish numerous
strategic-planning documents. Many countries release implementation plans for the
regulation on personal privacy data, clarify the standards for the collection and use
of personal information, and quicken the deployment of personal information and
privacy data protection.
1.1.7 The Rule-of-Law Construction in Cyberspace

Incessantly Accelerates and Antitrust Regulation
Continuously Intensifies
In recent years, the rule-of-law construction in cyberspace developed steadily, the

practice of the rule-of-law construction deepened sustainably, and the achievements
of the rule-of-law construction emerged continually. This provided strong legal guar-
antee for expediting the recovery of global economy, effectively preventing and
controlling the pandemic, and boosting the iterative development of network infor-
mation technology. Globally, cybercrimes continue to increase. Under such circum-
stances, countries strengthen the construction of cyber law-enforcement agencies
and augment the intensity and investment of cyber law-enforcement. The United
States establishes the post of “Cyber Czar” to coordinate the work of cybersecurity
strategies. French president announced an investment of 136 million euros in the
construction of “Cyber Firefighter Program” of the Agence nationale de la sécurité
des systèmes d’information (ANSSI; English: French National Agency for the Secu-
rity of Information Systems). The European Union proposes to integrate the resources
of EU member states and organize a joint cyber department under the leadership of
European Network and Information Security Agency (ENISA), in order to crack
down on cybercrimes. Cross-border cyber law-enforcement becomes an effective
means to combat cross-border cybercrimes. The 75th Session of the UN General
Assembly adopted the resolution on the UN Treaty on Cybercrime, with the negoti-
ation of the above-mentioned treaty scheduled to be launched in January 2022. The
United States, Canada and some European countries jointly destroy Emotet, a botnet.
Various countries strengthen the protection of the rights and interests of the vulnerable
groups, especially children, in cyberspace. The United Nations releases “Roadmap
for Digital Cooperation”, promoting digital technology to benefit all people in an
equal and safe manner. The United States, China, the United Kingdom and Japan
promulgate relevant laws to solidify the protection of children’s online rights and
interests.
In the field of cyber sovereignty, various countries continue to enhance their aware-
ness of cyber sovereignty. Against the background of frequent cyber-sovereignty-risk
incidents, various countries take comprehensive measures (e.g. laws, policies and
technological standards) to seek cyber sovereignty and interests, and deepen and opti-
mize legislation on data security to protect national security, commercial interests and
public privacy. In the field of governing network platforms, the network scale effect of
network-platform giants poses a threat to the fairness and sharing of network-market
competition order. Various countries continuously strengthen legislation on antitrust
work and regulate the competition of platform markets. The U.S. House Committee
on the Judiciary approves a number of new antitrust laws, which directly restrict large-
scale technological corporations. The European Union publishes Digital Markets
Act (Draft), which aims to solve the unfair competition among digital platforms
and reinforce the prior supervision of large-scale digital platforms, and requires
platforms to notify the mergers and acquisitions in advance. China timely revises
The Antitrust Law of the People’s Republic of China, formulates antitrust guide-
lines in the field of platform economy, and imposes a fine of 18.228 billion yuan
on Alibaba Group. Various countries fortify the regulation on the accountability of
cyber-platform tort. The U.S. Senate proposes Secure Technology Act, which sets the
boundaries of liability immunity and adds the excluded objects of immunity among
platform enterprises. The European Union publishes Digital Services Act (Draft),
which raises higher requirements for platform enterprises in terms of accountability
standard and system-risk assessment. In the field of emerging-technology regula-
tion, more countries enhance legislative protection of bioinformation, algorithm
governance and blockchain. For example, the United States publishes a privacy
law for biometric information, and the European Union especially establishes a
data-processing evaluation system to protect data via algorithm.
1.1.8 International Competition on Digital Rule-Making Is

Fierce and International Order in Cyberspace Is
Rapidly Reshaped
The COVID-19 pandemic undermines global exchanges and cooperation. The game
in cyberspace among major countries and regions becomes more intense. In inter-
national cyberspace governance, the uncertainty and vulnerability snowball, and the
original international division system disintegrates, which test global governance
systems. It is an urgent and practical problem to hasten economic recovery via the
use of digital technology. The debate among various parties on digital economy, data
security, platform governance, technology governance, ICT supply-chain security
and other issues continues to heat up. The game among big powers expands from
the technological and industrial levels to the rules on international governance, with
focus on international digital rules. As platform enterprises play a more leading role,
major countries generally reinforce platform governance. Besides, global digital tax
administration accelerates, and data-governance rule improves. Major countries vie
for discourse power in making rules in the field of digital economy. Developing
12 1 Overview
countries in ASEAN, the Middle East and Africa actively advance digital transfor-
mation, strengthen digital economic cooperation, and develop into an emerging force
in cyberspace.
The trend of fragmentation in cyberspace continues. With unique advantages
in cyberspace, the United States incessantly dominates international policies with
domestic politics. The European Union buttresses strategic autonomy in cyberspace
and bolsters the Transatlantic Trade and Investment Partnership (TTIP) with the
United States. Moreover, public resources in global cyberspace becomes increas-
ingly scarce and uneven. Against the backdrop of the competition among great
powers, geopolitics breeds new digital divide, which aggravates the imbalance of
world Internet development. China upholds the principles of “Good-Neighborliness
and Friendly Cooperation” in cyberspace, advances the idea of “a community with
a shared future in cyberspace” ideologically and practically, and gradually bene-
fits neighboring countries. In September 2020, China’s Global Initiative on Data
Security20 attracted worldwide attention. The Initiative focused on core issues in the
field of global digital security governance, and aimed to foster the governance of
global digital security and the sustainable development of global digital economy
by practical measures, including clarifying governmental codes of conduct, urging
enterprises to share responsibilities and addressing security risks with multi-party
cooperation.
1.2 Internet Development in Representative Countries
In 2017, World Internet Development Report established the Global Internet Develop-
ment Index (GIDI) System. GIDI System selects and analyzes 48 representative coun-
tries on the five continents to fully represent the latest world Internet development
in 2021. The 48 representative countries are listed as below:
America: The United States, Canada, Brazil, Argentina, Mexico, Chile, Cuba.
Asia: China, Japan, South Korea, Indonesia, India, Saudi Arabia, Türkiye, The
United Arab Emirates, Malaysia, Singapore, Thailand, Israel, Kazakhstan, Vietnam,
Pakistan, Iran.
Europe: The United Kingdom, France, Germany, Italy, Russia, Estonia, Finland,
Norway, Spain, Switzerland, Denmark, the Netherlands, Portugal, Sweden, Ukraine,
Poland, Ireland, Belgium.
Oceania: Australia, New Zealand.
Africa: South Africa, Egypt, Kenya, Nigeria, Ethiopia.
20People’s Daily: “China Proposes Global Initiative on Data Security”, September 9, 2020, http://
world.people.com.cn/n1/2020/0909/c1002-31854286.html.
1.2 Internet Development in Representative Countries 13
1.2.1 Index Construction
Global Internet Development Index (GIDI) System comprehensively measures a

country’s Internet development with six first-level indicators, i.e. infrastructure,
innovation capacity, industrial development, Internet application, cybersecurity and
cyberspace governance. In 2021, GIDI System followed first-level indicators in
previous years, with 18 second-level indicators and 36 third-level indicators. Given
the availability of original data, GIDI System slightly adjusted the descriptions of
some indicators at three levels as well as data sources. To be specific, GIDI System
is modified as follows:
The first-level indicator “Infrastructure”, the third-level indicator “Charge Burden
of Mobile Network”, Data Sources: “International Telecommunication Union”
changed to “Global mobile Suppliers Association”.
The first-level indicator “Innovation Capacity”, the third-level indicator “Inno-
vation Driving Force”, Indicator Description: “Reflecting the innovation in diverse
development, R&D and the marketization of innovation achievement in different
countries” changed to “Reflecting the application of emerging technologies like
AI, robotics, big data, cloud computing and e-commerce by enterprises in different
countries”.
The first-level indicator “Industrial Development”, the third-level indicator “Intel-
lectual Property Rights Protection” changed to “The Degree of Intellectual Property
Rights Protection”, Data Sources: “World Economic Forum” changed to “Global
Trade and Innovation Policy Alliance”.
The first-level indicator “Internet Application”, the third-level indicator “Online
Activity Degree” changed to “Online Content Availability”, Data Sources: “ZookNIC
(A Domain-Name Data Statistical Platform) and the United Nations” changed to
“World Economic Forum”.
The first-level indicator “Cybersecurity”, newly added: the second-level indi-
cator “Cybersecurity Legislation”; the second-level indicator “Cybersecurity Level”,
newly added: the third-level indicator “Cybersecurity Development Capability”.
1.2.2 GIDI System
Table 1.1 shows GIDI System in 2021.
1.2.3 Analysis of Results
Through the calculation of indicators, the scores of Internet Development Index in

48 countries are obtained, as shown in Table 1.2. In general, the United States and
China take the lead over other countries in Internet development, European countries
14 1 Overview
Table 1.1 GIDI System in 2021

First-level Second-level Third-level indicators Indicator description Data sources
indicators indicators
1. Infrastructure 1.1 Fixed 1.1.1 Average Reflecting the average Statistics of Global
Infrastructure download rate of fixed download rate of fixed Digital Reports
broadband network broadband users over a released by
given period of time in DataReportal and
different countries other institutions
1.1.2 IPv6 Reflecting the Statistics of Cisco (the
deployment of IPv6 United States)
1.2 Mobile 1.2.1 Average Reflecting the average Statistics of Global
Infrastructure download rate of download rate of Digital Reports
mobile broadband mobile broadband users released by
network over a given period of DataReportal and
time in different other institutions
countries
1.2.2 Infrastructure of Reflecting the Statistics of Global
mobile network infrastructure Digital Reports
construction of mobile released by
network in different DataReportal and
countries other institutions
1.2.3 Charge burden of Reflect the availability Statistics of Global
mobile network of mobile services and mobile Suppliers
devices from the Association
perspective of price in
different countries
1.3 Application 1.3.1 The number of Reflecting the number Statistics of TOP500
Infrastructure supercomputers of supercomputers in
different countries
2. Innovation 2.1 ICT Patent 2.1.1 The number of Reflecting the level and Database of
Capacity Application ICT patent capacity of ICT patent Organization for
applications applications in different Economic
countries Co-operation and
Development
2.2 Innovation and 2.2.1 The ratio of R&D Reflecting the ratio of Statistics of the World
Development investment in GDP R&D investment in Bank
Capacity GDP in different
countries
2.2.2 Innovation Reflecting the Statistics of World
driving force application of emerging Economic Forum
technologies like AI,
robotics, big data,
cloud computing and
e-commerce by
enterprises in different
countries
2.3 Innovation 2.3.1 The ratio of Reflecting the ratio of Statistics of World
Potential talents with digital talents with digital Economic Forum
skills skills in the total
population in different
countries
(continued)
Table 1.1 (continued)

3. Industrial 3.1 Industrial 3.1.1 The degree of Reflecting the degree of Global Trade and
Development Development intellectual property the protection of Innovation Policy
Environment rights protection physical property rights Alliance International
and intellectual Property Rights Index
property rights, as well (IPRI)
as the legal and
political environment to
realize the protection of
property rights in
different countries
3.1.2 The capacity of Reflecting the level of Statistics of Swiss
participating in participating in Economic Institute
globalization globalization in terms
of economic, social and
political dimensions in
different countries
3.2 Digital Industry 3.2.1 The ratio of ICT Reflecting the ratio of Statistics of The
value added ICT industrial value United Nations
added in GDP in Conference on Trade
different countries and Development
3.2.2 The ratio of ICT Reflecting the ratio of Statistics of World
service export ICT service export Development
scale in that of Indicators (WDI) of
domestic service in the World Bank
different countries
3.2.3 The ratio of ICT Reflecting the ratio of Statistics of World
product export ICT product export Development
scale in that of Indicators (WDI) of
domestic products in the World Bank
different countries
3.2.4 The number of Reflecting the number Statistics of CB
unicorns in digital of corporations with the Insights
industry market value of over
one billion U.S. dollars
in digital industry in
different countries
3.2.5 The creation of Reflecting the creation Statistics of
mobile applications of mobile applications International
(Weight: 20%) in different countries Monetary Fund
3.3 Economic Effect 3.3.1 The degree of Reflecting the use of Statistics of World
of Digital Industry enterprises’ digital ICT to improve Economic Forum
transformation commercial model in
different countries
3.3.2 The impact of Reflecting the use of Statistics of World
digital economy on ICT to improve Economic Forum
new organizational organizational model,
model such as building virtual
teams and telework, in
different countries
(continued)
16 1 Overview

4. Internet 4.1 Person-level 4.1.1 The number of Reflecting the total Statistics of Global
Application Application Internet users number of Internet Digital Reports
users in different released by
countries DataReportal and
other institutions
4.1.2 Online time at Reflecting online time Statistics of Global
social media at social media in Digital Reports
different countries released by
DataReportal and
other institutions
4.1.3 Online content Assessing the Statistics of World
availability availability of relevant Economic Forum
online content and
services available to
netizens in different
countries
4.2 Business-Level 4.2.1 ICT used in B2B Reflecting enterprises’ Statistics of World
Application transactions level and capacity in Economic Forum
using ICT in B2B
transactions in different
countries
4.2.2 Internet used in Reflecting the role of Statistics of World
B2C transactions Internet in e-commerce Economic Forum
4.3 4.3.1 Online service Reflecting the quality Statistics of the
Government-Level index of online service United Nations
Application provided by
government websites in
different countries
4.3.2 E-participation Reflecting the online Statistics of the
index communication United Nations
between citizens and
government in different
countries
4.3.3 Open Reflecting the level of Statistics of the
government data index open government data United Nations
in different countries
5. Cybersecurity 5.1 Cybersecurity 5.1.1 Policies and Reflecting the Statistics of
Legislation regulations on legislation on International
cybersecurity cybersecurity and Telecommunication
cybercrime in different Union (2020)
countries
5.2 Cybersecurity 5.2.1 The number of Reflecting the number Database of the World
Facilities secure network servers of secure network Bank
per one million people servers per 1 million
people in different
countries
(continued)

5.3 Cybersecurity 5.3.1 The number of Reflecting the number List of Hot 150
Industries companies included in of companies that earn Cybersecurity
Hot 150 Cybersecurity a spot on the list of Hot Companies published
Companies 150 Cybersecurity by Cybersecurity
Companies in different Ventures, a U.S.
countries investment consulting
agency
5.4 Cybersecurity 5.4.1 The times of Reflecting mobile Global Cybersecurity
Level cyberattacks devices infected with Survey Report by
malware, malicious Comparitech, a
attacks in the financial technological research
field, computers corporation
infected with malware,
Telnet attacks, the level
of encrypted mining
attacks and the
condition of cyber
defense, the latest
legislation on
cybersecurity and so on
in different countries
5.4.2 Cybersecurity Reflecting in the R&D Statistics of
Development of cybersecurity International
Capability technology, education Telecommunication
and training, and the Union (2020)
improvement of
domestic cybersecurity
development capacity
by government
departments in
different countries
6. Cyberspace 6.1 Internet 6.1.1 Related Reflecting related Referring to
Governance Governance organizations in organizations in achievement of
Internet governance Internet governance in foreign researches and
different countries, in inviting experts and
such specific affairs as scholars in relevant
policy, security, fields to conduct
protection of critical comprehensive
information evaluation
infrastructure,
Computer Emergency
Response Team
(CERT), criminal, and
protection of
consumers
(continued)
18 1 Overview

6.1.2 Policies and Reflecting Internet Referring to
regulations in Internet affairs or the making of achievement of
governance related regulations and foreign researches and
policies in different inviting experts and
countries scholars in relevant
fields to conduct
comprehensive
evaluation
6.2 Participation in 6.2.1 Participation in Reflecting participation Referring to
International international meetings in international achievement of
Governance in Internet governance conferences on foreign researches and
cyberspace in different inviting experts and
countries, including scholars in relevant
bilateral meetings, fields to conduct
multilateral meetings comprehensive
and other forums evaluation
6.2.2 Leading or Reflecting helping Referring to
participating in cyber others in cyber capacity achievement of
capacity construction construction, including foreign researches and
technological inviting experts and
assistance, policy scholars in relevant
guidance or project fields to conduct
training in different comprehensive
countries evaluation
remain relatively balanced in Internet development, ranking top in the scores of

Internet Development Index, and Latin America and Sub-Saharan Africa rise in the
scores of Internet Development Index, yet rank low as a whole.
1.2.3.1 The Construction of New Infrastructure Accelerates

and the Problem of Digital Divide Remains Unsolved
In the past year, the commercial use of 5G sped up. According to the statistics of
Global System for Mobile communications Association (GSMA), by May 2021,
162 operators in 68 countries and regions had launched one or more 5G commercial
services.21 China has built the largest 5G Standalone (SA) Network in the world and
run 961,000 5G base stations as totaled,22 with the number of 5G terminal connections
reaching 365 million.
Globally, IPv6 deployment rapidly progresses and basic resource capacity contin-
uously improves. The construction of new infrastructure accelerates. Under such
circumstances, the development of IPv6-based next-generation Internet establishes a
solid foundation for the construction of new digital infrastructure like 5G. According
21 Tech.sina.com.cn: “Globally 5G Commercial Network Reaches 162 and 435 Operators Invest in
5G”, May 7, 2021, https://finance.sina.com.cn/tech/2021-05-07/doc-ikmyaawc3871051.shtml.
22 Data Source: Ministry of Industry and Information Technology of the People’s Republic of China.
Table 1.2 The scores of

Ranking Country Score
internet development index in
48 countries 1 The United States 70.17
2 China 61.70
3 The United Kingdom 57.39
4 Germany 57.30
5 Canada 57.01
6 South Korea 56.50
7 Sweden 56.42
8 France 56.28
9 The Netherlands 56.18
10 Israel 55.91
11 Japan 55.90
12 Singapore 55.71
13 Finland 55.45
14 Switzerland 54.58
15 Denmark 54.33
16 Australia 52.90
17 Spain 52.37
18 Ireland 52.18
19 India 52.17
20 Norway 52.15
21 Estonia 52.05
22 Russia 52.00
23 Belgium 51.43
24 New Zealand 51.31
25 Italy 51.08
26 Portugal 50.83
27 Malaysia 50.70
28 The United Arab Emirates 50.58
29 Poland 50.02
30 Saudi Arabia 49.64
31 Brazil 49.37
32 Vietnam 48.79
33 Thailand 48.66
34 Türkiye 48.43
35 Chile 47.46
36 Indonesia 47.45
37 Ukraine 47.32
(continued)
20 1 Overview

38 Mexico 47.15
39 South Africa 46.78
40 Egypt 46.11
41 Iran 44.92
42 Argentina 44.79
43 Kazakhstan 44.76
44 Kenya 44.67
45 Pakistan 42.92
46 Nigeria 41.67
47 Ethiopia 38.67
48 Cuba 35.90
to the statistics of Cisco (the United States) on global IPv6 deployment, by May
2021, the IPv6 deployment rate was higher than 50% in representative countries and
regions such as the United States, Canada, France, the United Kingdom, Germany,
Saudi Arabia, India and Brazil, and lower in African countries such as Ethiopia,
Kenya and Nigeria.23
In representative countries, the construction of information infrastructure further
improves, yet faces a big challenge in obtaining stable and affordable network-
connection services. On the one hand, the construction of data centers quickens. The
COVID-19 pandemic catalyzes the demand for teleworking, streaming-media videos
and online shopping, and drives the growth of data centers and cloud computing
market. As the statistics of Gartner suggest, in 2020, global expenditure on IT dropped
by 5.4% over 2019. In particular, the expenditure on data center systems reached c.
208.3 billion U.S. dollars. On the other hand, digital divide is not a problem to
be sneezed at. According to the statistics of Digital 2021, the number of global
Internet users maintained a momentum for growth (albeit slower), reaching around
4.66 billion, with a penetration rate of 59.5% and an increase of 120 million users
(over 2020). Regionally, the Internet penetration rate in Europe was higher than that
in other countries in the world. Noticeably, the Internet penetration rate in Northern
Europe was the highest in the world, reaching 96%. The Internet penetration rate
was relatively high in East Asia and West Asia and low in Central Asia and South
Asia. In African continent with weak Internet infrastructure, the Internet penetra-
tion rate needs to be raised. The Internet penetration rate was the lowest in Central
Africa (26%), with fast growth.24 With regard to network affordability, according
to the statistics of Global System for Mobile communications Association, charge
burden of mobile network is relatively light in countries like Japan, Singapore, the
23Data Source: Cisco (the United States), https://6lab.cisco.com/stats/search.php.

24Data Source: DatarePortal: Digital 2021, https://datareportal.com/reports/digital-2021-global-
overview-report, 2021.1.27.
United Kingdom, Germany, Norway, Switzerland, Australia, Ireland, New Zealand

and Belgium. Global digital “access divide” remains unsettled, and “digital compe-
tence divide” becomes more prominent. (Digital competence enables various groups
to acquire, process and create digital resources.) For example, marginal groups in
the information era have no access to Internet and remain utterly ignorant of digital
technology. This behooves government and society to provide more education and
training resources and encourage various user groups to leap over “digital compe-
tence divide”. Table 1.3 shows the scores of Information Infrastructure Index in 48
countries.
1.2.3.2 Various Countries Attach Great Importance to Scientific

and Technological Innovation, with an Eastward Shift of Core
Regions in Innovation
The COVID-19 pandemic accelerates the digital transformation of various industries.

Various countries lay emphasis on and make investment in cutting-edge-technology
industries, which maintain rapid development. Organization for Economic Co-
operation and Development (OECD) released Digital Economy Outlook 2020,25
which indicated that by 2020, more than 60 countries had formulated their AI strate-
gies. Specifically, Canada, the United States, the European Union and other countries
and regions focus on the R&D of AI technology. Finland, Germany, South Korea
and other countries center on the application of AI. Australia, Finland, the United
Kingdom, the United States and other countries lay stress on the training of AI skills.
Besides, the policies on blockchain and quantum computing arouse wide attention.
Australia, Germany, India, Switzerland and other countries launch blockchain strate-
gies, and the United States, China, the European Union and other countries and
regions take the lead in the expenditure on the R&D of quantum computing. As
the 57th edition of the TOP500 List evidences, in 2021, the United States, Japan
and China possessed remarkable strength in the development of supercomputers.
Among them, the United States and Japan kept ahead in supercomputing strength
and performance in the world.
According to Global Innovation Index 2020,26 high-income countries like
Switzerland, Sweden, the United States, the United Kingdom and the Netherlands
rank top in the innovation list. Notably, Asian economies, China, India, the Philip-
pines and Vietnam in particular, attain significant progress, which presents a trend
of eastward shift of core regions in global innovation. As the statistics of OECD
disclose, China ranks the 1st in the number of ICT patent applications, much higher
than the United States, Japan and other countries. Table 1.4 shows the scores of
Internet Innovation Capability Index in 48 countries.
25 Data Source: OECD Digital Economy Outlook 2020.

26 Data Source: Global Innovation Index 2020 published by Cornell University, INSEAD, WIPO.
22 1 Overview

information infrastructure
index in 48 countries 1 Singapore 7.00
2 South Korea 6.86
3 Switzerland 6.80
4 The United States 6.77
5 China 6.75
6 Norway 6.42
7 France 6.35
9 Canada 6.30
10 Denmark 6.28
12 Sweden 6.08
13 Japan 6.07
14 New Zealand 6.01
15 Germany 5.80
17 Spain 5.73
18 Finland 5.72
19 Portugal 5.69
20 Belgium 5.63
21 Thailand 5.58
22 Australia 5.51
23 Chile 5.38
25 Israel 5.26
26 Estonia 5.15
27 Poland 5.14
28 Malaysia 5.04
29 Brazil 4.83
30 Italy 4.80
31 Ireland 4.68
32 Vietnam 4.67
33 Russia 4.59
34 Mexico 4.53
35 India 4.47
36 Argentina 4.34
37 Ukraine 4.21
(continued)

38 Kazakhstan 4.13
40 Türkiye 4.08
41 Egypt 3.92
42 Kenya 3.81
43 Indonesia 3.80
44 Iran 3.77
45 Nigeria 3.46
46 Ethiopia 3.22
47 Cuba 3.07
48 Pakistan 2.50
1.2.3.3 In the COVID-19 Pandemic, the Scale of Digital Industry

Expands Quickly and Industrial Digitization Speeds up
In the COVID-19 pandemic, digital economy boasts the rarely-seen field that grows
against headwinds. Particularly, the scale of ICT service export in China, Argentina,
India, Finland, Israel and Ireland accounts for high proportion of the scale of domestic
service export. The scale of ICT product export in Mexico, China, Malaysia, Singa-
pore and Vietnam ditto. The United States, China, India and the United Kingdom
hold a safe lead in the number of unicorns in digital industry.
Hammered by the COVID-19 pandemic, offline businesses typified by tradi-
tional manufacturing and service industries transfer to online businesses in a fast
way, which expedites industrial digitization. Significantly, the digitization of manu-
facturing industry deepens. According to the statistics of World Economic Forum,
the United States, Canada, South Korea, Singapore, the United Kingdom, Finland,
Switzerland and Israel remain on top in corporate digital transformation.
Table 1.5 shows the scores of Internet Industrial Development Index in 48
countries.
1.2.3.4 With a Steady Uptrend in Internet Application, New Online

Service Forms and Models Come to Rise
In the COVID-19 pandemic, online services widely prevail and person-level Internet
application further improves. According to the statistics of Digital 2021, by June
2021, 3.96 billion people in the world used social media, accounting for 51% of
the total population, with a year-on-year increase of 10%.27 The demand for online
27Datareportal: Digital 2021, https://datareportal.com/reports/digital-2021-global-overview-

report.
24 1 Overview

internet innovation capability
index in 48 countries 1 The United States 10.20
2 Japan 9.87
3 South Korea 9.79
4 China 9.76
5 Germany 9.49
6 Sweden 9.44
8 Israel 9.19
9 France 9.17
10 Canada 9.14
12 Finland 9.12
13 Switzerland 8.92
14 Australia 8.85
15 Singapore 8.77
16 India 8.71
17 Italy 8.56
18 Denmark 8.55
19 Russia 8.54
20 Ireland 8.51
21 Norway 8.49
22 Spain 8.47
24 Malaysia 8.36
26 Poland 8.11
27 Türkiye 8.08
28 New Zealand 8.02
29 Estonia 7.98
30 Portugal 7.95
32 Mexico 7.80
33 Ukraine 7.78
34 Belgium 7.70
35 Chile 7.36
36 Vietnam 7.34
37 Thailand 7.32
(continued)

38 Egypt 7.29
39 Brazil 7.29
40 Iran 7.16
41 Indonesia 6.98
42 Argentina 6.95
43 Pakistan 6.92
44 Kenya 6.91
45 Nigeria 6.82
46 Kazakhstan 6.57
47 Ethiopia 6.38
48 Cuba 5.50
education surges, and traditional schools try the use of online courses to promote
educational plans. Business-level Internet application develops fast. Particularly, the
technological application of digital payment and e-commerce remarkably increase,
and new retail models like livestream e-commerce and cross-border e-commerce
thrive. According to the Network Readiness Index 2020,28 a report released by Portu-
lans Institute, the United States, China, South Korea, Estonia, Finland, Israel and
Sweden rank top in business-level application of digital technologies. In government-
level Internet application, in October 2020, Organization for Economic Co-operation
and Development (OECD) published Digital Government Index, which measured the
digital level, efficiency and transparency of governmental departments in 33 coun-
tries. As suggested, South Korea, the United Kingdom, Denmark and Japan take the
lead, whilst Argentina, Finland, Germany, Belgium and Chile lag behind.29
In the COVID-19 pandemic, new business forms like telemedicine, teleworking
and online education continue to emerge. Chinese medical teams use remote diag-
nosis and treatment to cure patients with the COVID-19. Many hospitals offer
virtual consultation services. Alihealth, JD.com, Tencent’s WeChat, WeDoctor, DXY,
Sina Weibo and www.haodf.com commonly operate online consultation platforms.
Argentina introduces Entre Todos, a collaboration portal, which provides infor-
mation, suggestions and tools for teleworking and finances small, medium and
micro enterprises that use teleworking. All Finnish schools adopt online teaching,
and students can complete manual courses with 3D modeling. New Internet-based
businesses and models drive economic growth in the COVID-19 pandemic.
Table 1.6 shows the scores of Internet Application Index in 48 countries.
28Data Source: The Network Readiness Index 2020 published by Portulans Institute.
29Data Source: Digital Government Index published by Organization for Economic Co-operation
and Development (OECD).
26 1 Overview

internet industrial
development index in 48 1 The United States 18.80
countries 2 China 15.35
3 Israel 14.27
4 Finland 14.02
5 Singapore 13.56
6 Sweden 13.46
7 Estonia 13.14
9 Ireland 13.01
10 Switzerland 12.78
11 Germany 12.72
13 France 12.65
14 Denmark 12.60
15 South Korea 12.39
16 Canada 12.28
17 Japan 12.22
18 Malaysia 12.16
19 India 12.12
20 Belgium 11.97
21 Vietnam 11.82
22 Spain 11.81
23 Australia 11.73
25 Portugal 11.65
27 Ukraine 11.34
28 Poland 11.31
29 Italy 11.29
30 Mexico 11.20
31 Chile 11.16
32 Indonesia 11.11
33 Thailand 11.09
34 Russia 11.07
35 Brazil 11.04
37 Türkiye 10.89
(continued)

39 Kenya 10.77
40 Argentina 10.76
41 Egypt 10.74
42 Norway 10.73
43 Pakistan 10.62
44 Kazakhstan 10.30
45 Iran 10.20
46 Ethiopia 9.46
47 Cuba 8.23
48 Nigeria 8.20
1.2.3.5 Cybersecurity Faces a Grim Picture and Cybersecurity Level

Varies Greatly in Different Countries
Presently, cybersecurity risks like cyberattack, ransomware and security vulnera-

bilities occur frequently. Canalys, a market research firm, publishes Next for the
Cybersecurity. As the report reveals, the attacks from ransomware soar. In 2020,
the number of ransomware attacks increased by 60% over 2019. As a result, the
scores of Cybersecurity Index in various countries tailed off, with wide disparity
in cybersecurity level. Comparitech, a technological firm, evaluates the status quo
of cybersecurity in 60 countries in terms of mobile devices infected with malware,
malicious attacks in the financial field, computers infected with malware, the condi-
tion of cyber defense, and the latest legislation on cybersecurity. As the results show,
the cybersecurity level is generally higher in Denmark, Sweden, Ireland, Norway,
Finland and the Netherlands yet lower in Vietnam, India, Brazil and Kazakhstan. As
data of CB Insights, an American cybersecurity think tank, indicated, in 2020, the
United States was a front-runner in the global cybersecurity field, ranking the 1st in
investment and transaction volume in this regard. Table 1.7 shows the scores of the
Cybersecurity Index in 48 countries.
In Future Risks Report 2020, Eurasia Group of the United States regards cyber-
security as the third largest risk in next five to ten years. Globally, governments and
enterprises attach more attention to cybersecurity year after year. As IDC predicts,
in 2021, the scale of global investment in hardware, software and services in relation
to cybersecurity achieved 143.5 billion U.S. dollars, with an increase of 8.7% over
2020. Noteworthily, China saw the fastest growth rate in the global cybersecurity
market.30
30Official website of IDC: “IDC Releases the Latest Version of Worldwide Security Spending Guide,
and China Takes the Lead in the World with a High Growth Rate of 16.8%”, March 9, 2021, https://
www.idc.com/getdoc.jsp?containerId=prCHC47519821.
28 1 Overview

internet application index in
48 countries 1 The United States 15.50
2 China 15.11
3 Canada 15.01
6 Germany 14.84
7 France 14.45
8 Sweden 14.41
9 Switzerland 14.36
10 Japan 14.01
11 Denmark 13.98
12 Australia 13.96
13 India 13.90
14 Israel 13.86
15 South Korea 13.84
16 Norway 13.79
17 Finland 13.78
18 Russia 13.75
19 Indonesia 13.63
19 Italy 13.63
21 Spain 13.62
22 Poland 13.47
23 Mexico 13.41
24 Belgium 13.35
26 Vietnam 13.26
27 Türkiye 13.22
28 Singapore 13.21
29 Thailand 13.20
30 Brazil 13.19
31 Malaysia 13.15
32 Estonia 13.10
33 Ireland 13.09
34 Ukraine 13.04
35 Argentina 13.03
36 Portugal 13.01
37 Egypt 12.82
(continued)

38 Chile 12.80
41 Pakistan 12.63
42 Nigeria 12.62
44 Iran 12.40
45 Kazakhstan 12.34
46 Kenya 12.15
47 Ethiopia 11.52
48 Cuba 9.50
1.2.3.6 The Order in Cyberspace Needs to Be Normalized

and International Cooperation in Internet Governance Needs
to Be Strengthened
Currently, international Internet governance comes to a stage that features deep

reform. In 2020, many countries augmented the governance of network content,
technology and platform by promoting legislation and law-enforcement. The United
States, the European Union, the United Kingdom, Germany and other countries and
regions included social media in the scope of regulation. To be specific, the European
Union released Digital Services Act (Draft), which required platforms to perform the
duty of reviewing and restricting the dissemination of illegal content. The European
Union and the United States tightened the grip on the regulation of AI and face recog-
nition and other technologies. The United Kingdom, Australia and Germany enacted
stringent antitrust laws and regulations. In brief, in regard to Internet governance, the
United States, China, the United Kingdom, Germany and other countries constructed
comprehensive policy-regulation systems and established complete organizations.
With the lack of global cyberspace governance and by-common-consent interna-
tional regulatory organizations, the antagonism among major countries in cyberspace
regulation intensifies, which urges them to reach a consensus on the rule and standard
framework in the field of Internet. The United States, China, the United Kingdom and
other countries actively partake in meetings under the theme of international Internet
governance and carry forward the reform of global Internet governance systems.
Table 1.8 shows the scores of Cyberspace Governance Index in 48 countries.
30 1 Overview

cybersecurity index in 48
countries 1 The United States 9.25
2 Israel 5.83
4 Canada 5.66
5 Singapore 5.64
7 Germany 5.59
8 Estonia 5.57
9 Denmark 5.57
10 Australia 5.56
11 Finland 5.53
12 France 5.52
13 Japan 5.51
14 Sweden 5.50
15 Norway 5.49
16 Belgium 5.48
17 Ireland 5.47
17 Spain 5.47
19 Russia 5.42
20 Portugal 5.40
21 Italy 5.38
22 Malaysia 5.37
23 Türkiye 5.36
24 Poland 5.35
24 South Korea 5.35
26 Brazil 5.26
27 Vietnam 5.25
28 New Zealand 5.22
30 China 5.15
31 India 5.11
32 Kazakhstan 5.08
34 Thailand 4.93
35 Indonesia 4.92
36 Egypt 4.84
37 Kenya 4.81
(continued)
1.3 Internet Development in Representative Countries and Regions 31

39 Nigeria 4.59
40 Ukraine 4.50
41 Iran 4.49
41 Chile 4.49
43 Switzerland 4.31
44 Mexico 4.06
45 Pakistan 4.04
46 Cuba 3.51
47 Argentina 3.10
48 Ethiopia 2.35
1.3 Internet Development in Representative Countries

and Regions
By comparison, as the scores of Internet Development Index in 48 countries reveal,

developed countries and regions in North America, Europe and Asia maintain the
high level of Internet development on average. Developing countries and regions in
Latin America and Africa develop quickly in Internet. The Report selects 10 repre-
sentative countries and regions (e.g. the United States, China, the United Kingdom,
Japan, India, Russia, Vietnam, Mexico, Kenya and the European Union) and analyzes
their Internet development. In 2021, the scores of various indicators in Internet
Development Index of representative countries and regions were normalized.
1.3.1 The United States Continues to Take the Lead

in the World in Internet Comprehensive Strength
The United States has been leading the innovation and development of world Internet.
In “The Scores of World Internet Development Index”, the United States still ranks the
1st in the world. Concretely, it ranks the 4th in the score of information infrastructure
index, and the 1st in the scores of innovation capacity index, industrial development
index, Internet application index, cybersecurity index and cyberspace governance
index. Figure 1.1 shows the scores of Internet Development Index of the United
States.
The United States continuously consolidates the construction of Internet infras-
tructure. In 2020, in order to advance the R&D of domestic 5G technology and
promote 5G technology at home and abroad, the United States successively released
National Strategy To Secure 5G, Promoting United States International Leadership in
32 1 Overview

cyberspace governance index
in 48 countries 1 The United States 9.65
2 China 9.59
4 Germany 8.86
5 Russia 8.63
6 Canada 8.62
7 South Korea 8.28
8 Japan 8.23
9 France 8.15
11 Singapore 7.76
12 Estonia 7.53
12 Sweden 7.53
12 India 7.53
15 Israel 7.50
16 Italy 7.43
17 New Zealand 7.42
19 Ireland 7.34
20 Switzerland 7.31
21 Denmark 7.29
22 Belgium 7.28
22 Australia 7.28
24 Spain 7.23
25 Finland 7.13
26 Norway 7.10
27 Portugal 7.09
29 Indonesia 7.00
30 Brazil 6.90
31 Iran 6.80
32 Türkiye 6.77
34 Poland 6.66
35 Malaysia 6.62
36 Argentina 6.61
37 Thailand 6.53
(continued)

38 Egypt 6.49
39 Ukraine 6.46
40 Vietnam 6.44
41 Kazakhstan 6.34
42 Chile 6.28
43 Kenya 6.21
44 Pakistan 6.20
45 Mexico 6.16
46 Cuba 6.09
47 Nigeria 5.99
48 Ethiopia 5.75
Fig. 1.1 The scores of internet development index of the United States
5G Act and Secure 5G and Beyond Act. In May 2021, the White House of the United
States published American Jobs Plan, which intended to invest 100 billion U.S.
dollars to develop broadband and ensure the security of network system.31 Simulta-
neously, in line with the American Rescue Plan, American government would invest
one billion U.S. dollars to establish a technological-modernization-aimed fund to
upgrade the security of cloud underlying architecture.32 To enable remote areas to
access external information via Internet connection and provide people with more
preferential broadband services, Elon Musk, founder of SpaceX, firstly proposed a
satellite Internet program and vigorously implemented it. On May 26, 2021, SpaceX
31 FACT SHEET: The American Jobs Plan, MARCH 31, 2021, https://www.whitehouse.gov/bri
efing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/.
32 President Biden Announces American Rescue Plan, January 20, 2021, https://www.whitehouse.
gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/.
34 1 Overview
launched 29th batch of Starlink satellites. This was deployed by SpaceX since the
launch of the first-batch Starlink satellites (totally 60) in May 2019. Currently, 1735
Starlink satellites are in orbit.33 Noticeably, the United States is beset by digital
divide. Brookings Institution, an American think tank, stresses that in the COVID-
19 pandemic, owing to large digital divide in the United States, colored race, the
elderly, low-income population and residents in rural areas have no access to digital
products and services, and some citizens cannot apply for unemployment relief or
receive remote learning and telemedicine services.
The United States leads the list in comprehensive innovation strength in the
world. In 2021, Quacquarelli Symonds, a global higher education research insti-
tution, released the QS World University Rankings by Subject, in which American
universities ranked top, with biological science, computer science and information
system and engineering in the lead. World Intellectual Property Organization (WIPO)
published Global Innovation Index (GII) 2020. As the report evinces, the United
States ranks the 3rd in innovation capacity, the 4th in innovation input and the 5th in
innovation output among 131 economies.34
The United States continually optimizes the layout of cutting-edge technolo-
gies like 5G, AI and quantum computing, and ranks the 1st in the development of
Internet industry in the world. In September 2020, the U.S. House of Representatives
proposed the Quantum Network Infrastructure Act, which advised the United States
to allocate 100 million U.S. dollars in fiscal year 2021–2025 to improve national
quantum network infrastructure and promote the application of quantum technology.
In December 2020, the White House of the United States issued an executive order,
which set the catalogue and timetable for AI application and started a project to
ensure the reliable use of AI by federal government.
The United States steadily enhances national cybersecurity capability and main-
tains a leading role in this regard in the world. In 2021, in response to cybersecurity
incidents, e.g. SolarWinds Event, Microsoft Exchange Vulnerability and the black-
mail attack on the U.S. oil pipeline operator, the United States immediately took
several protective measures. In January 2021, the U.S. Department of State estab-
lished the Bureau of Cyberspace Security and Emerging Technologies to combat the
threats to cybersecurity and from emerging technologies. In March 2021, the National
Security Commission on Artificial Intelligence of the United States released its Final
Report, which proposed to organize a special working team and a full-time operation
and maintenance center to combat digital fraud, so as to better protect the databases
of the United States. Besides, Final Report prioritized data security in the rules for
foreign-investment screening, the management of supply-chain risks and legislation
on national data protection. In May 2021, U.S. President Biden signed Executive
Order on Improving the Nation’s Cybersecurity, which required federal agencies of
the United States to formulate implemental plans based on zero-trust security archi-
tecture and reinforce American government’s cybersecurity modernization, software
33 Rocket Launch: SpaceX Falcon 9 Starlink-28, May 26, 2021, https://www.kennedyspacecenter.

com/launches-and-events/events-calendar/2021/may/rocket-launch-spacex-falcon-9-starlink-28.
34 The Global Innovation Index (GII) 2020, https://globalinnovationindex.org/Home.
Fig. 1.2 The scores of internet development index of China
supply-chain security and incident detection and response capability as well as overall
resistance to threats.
1.3.2 Internet Development in China Comes to the Stage

of Enhancing Quality and Improving Efficiency
In Internet development, China comes second to the United States. In “The Scores
of Specific Indexes”, China ranks the 5th in the score of information infrastructure
index, the 4th in the score of innovation capacity index, the 2nd in the score of
industrial development index, the 2nd in the score of Internet application index, the
30th in the score of cybersecurity index, and the 2nd in the score of cyberspace
governance index. Figure 1.2 shows the scores of Internet Development Index of
China.
China progresses stably in the construction of Internet infrastructure and acceler-
ates the deployment of mobile infrastructure and application infrastructure. Particu-
larly, China ranks the 1st in the world in the speed and scale of 5G network construc-
tion. Statistically, by June 2021, the number of 5G base stations totaled 961,000 in
China, with full coverage of all cities above the prefecture level.35 Satellite Internet
develops fast. In April 2020, satellite Internet was listed in seven key fields of “new
infrastructure”. Since then, the construction of satellite Internet in China sped up.
According to the report released by GNSS and LBS Association of China in May
2021, in 2020, China’s satellite navigation and location service industry achieved a
35Data Source: “The State Council Information Office Holds a Press Conference on Industrial & IT
Development in the First Half of the Year”, http://www.scio.gov.cn/xwfbh/xwbfbh/wqfbh/44687/
46299/index.htm.
36 1 Overview
total output value of 403.3 billion yuan, with an increase of c. 16.9% year on year.36
Overall network coverage rate and service capacity continue to improve. According
to the data released by China Internet Network Information Center (CNNIC), by
June 2021, China had obtained 62,023/32 IPv6 address blocks.37
China continues to strengthen scientific and technological innovation and accel-
erate the construction of innovation-oriented country, which constantly fortifies inde-
pendent innovation capacity. According to the report Global Innovation Index (GII)
2020, China ranks the 14th in the world in the score of innovation capability index,
for two consecutive years. It also ranks the 1st in the world in the scores of key output
indexes, such as the number of patent applications, utility models, trademarks, indus-
trial design and export of creative products, and the 1st in middle-income economies
in the score of innovation quality index, for eight consecutive years.
China maintains a strong momentum in the development of Internet-based indus-
tries, with cutting-edge technologies and industries like AI developing rapidly. Statis-
tically, in 2020, there were more than 40,000 above-designated-scale enterprises in
software and information technology service industries in China, whose accumulated
software business income reached 8161.6 billion yuan, with an increase of 13.3%
over 2019.38 China’s AI industry develops rapidly. As IDC’s report suggested, in
2020, China’s AI infrastructure market achieved a scale of 3.93 billion U.S. dollars,
with a year-on-year increase of 26.8%, which would reach 7.8 billion U.S. dollars in
2024, as estimated.39
In Internet application, firstly, Fintech advances quickly, and Digital Currency
Electronic Payment (DCEP) arouses wide attention in various countries. Since DCEP
was piloted in 2020, China has continuously expanded the pilot. Provinces and cities
that take in part in the pilot basically cover the Yangtze River Delta, the Pearl River
Delta, Beijing-Tianjin-Hebei Region, Central China, Western China, Northeastern
China and Northwestern China. By June 2021, the number of pilot cases had exceeded
1.32 million, and more than 20.87 million personal wallets opened, with a total trans-
action amount of c. 34.5 billion yuan.40 Secondly, industrial digitization develops in
a faster and all-round way. Agricultural digitization steadily progresses. In the first
quarter of 2021, national rural online retail sales amounted to 439.79 billion yuan,
36 Xinhuanet: “The Total Output Value of China’s Satellite Navigation & Location Service Industry
Achieved 403.3 Billion Yuan”, May 18, 2021, http://www.xinhuanet.com/tech/2021-05/18/c_1127
460035.htm.
37 Data Source: The 48th Statistical Report on China Internet Network Development released by
China Internet Network Information Center.

38 The Ministry of Industry and Information Technology of the People’s Republic of China:
Statistical Bulletin of Software and Information Technology Service Industry in 2020, January
29, 2021, https://www.miit.gov.cn/jgsj/xxjsfzs/xyyx/art/2021/art_37ffeab7f1134ae6a2f6c3c9756
910f6.html.
39 Chinanews.com: “Report: In 2020, China’s AI Servers Account for Around One Third of
Global Market”, December 16, 2020, http://tradeinservices.mofcom.gov.cn/article/news/gnxw/202

012/112166.html.
40 Data Source: White Paper on the Progress of Research & Development of E-CNY in China
published by the People’s Bank of China.

with a year-on-year increase of 35.3% and an average growth rate of 14.7% in 2019–
2021. National online retail sales of agricultural products reached 105.58 billion
yuan, with a year-on-year increase of 4.9%.41 Intelligent manufacturing deepens. In
2020, in China, the digitization rate of production equipment of above-designated-
scale industrial enterprises jumped to 49.4%, and the numerical control rate of key
processes rose to 51.7%. Thirdly, the level of e-government improves firmly. The
construction of digital government tremendously optimizes digital business environ-
ment. Zhejiang, Shanghai and other regions continually strengthen the construction
of digital government and further ameliorate business environment, aiming to realize
“one time for handling affairs” and “one card for multiple businesses”.
In cybersecurity, China sustainably enhances cybersecurity protection, and cyber-
security industry develops fast. As estimated, during the “13th Five-Year Plan”
Period, China’s cybersecurity industry displayed a trend of high-speed growth. Enter-
prises engaged in cybersecurity-related business exceeded 3000,42 whose businesses
covered cybersecurity device, service, software, integration and other links.
1.3.3 The United Kingdom Takes the Lead in Cybersecurity

Strength
In “The Scores of World Internet Development Index”, the United Kingdom ranks
the 3rd in the world. Specifically, it ranks the 24th in the score of information infras-
tructure index, the 7th in the score of innovation capacity index, the 8th in the score
of industrial development index, the 4th in the score of Internet application index,
the 3rd in the score of cybersecurity index and the 3rd in the score of cyberspace
governance index. Figure 1.3 shows the scores of Internet Development Index of the
United Kingdom.
Presently, the United Kingdom makes remarkable progress in mobile and fixed
network connections, yet lags behind other European countries in all-optical network
coverage. Now, British mobile communication service providers are mainly British
Telecom (BT), Vodafone, Telefónica UK Limited (O2), EE and 3UK. In 5G construc-
tion, in July 2020, British government announced the launch of “5G Create” Fund of
30 million pounds. As a part of “5G Testbeds and Trial Programme” (5GTT), “5G
Create” means an innovation project that helps to develop 5G technology. According
to the Network Readiness Index 2020, the United Kingdom scores 76.27 in network
readiness index, ranking the 10th. Its weaknesses lie in personal skills and privacy
protection.
41 The Ministry of Commerce of the People’s Republic of China: “Online Retail Market Advances
Steadily in the First Quarter”, April 30, 2021, http://www.gov.cn/xinwen/2021-04/30/content_5604
116.htm.
42 People’s Daily Online: “Cybersecurity Industry in China Grows at a High Speed”, December 3,
2020, http://politics.people.com.cn/n1/2020/1203/c1001-31953703.html.
38 1 Overview
Fig. 1.3 The scores of internet development index of the United Kingdom
British Internet innovation capacity rests on favorable business environment and

strong policy support. The United Kingdom boasts a leading innovation-driven
economy in the world, which provides a lenient and flexible regulatory environ-
ment for Internet innovation and assists domestic technological enterprises to attract
foreign investment and enlarge export. In June 2020, the United Kingdom staged
“technology trade strategy”, stating that it would establish a digital trade network in
the Asia-Pacific Region (e.g. Japan, South Korea, Thailand, Australia, Indonesia and
Singapore) in the future, in a bid to help domestic technological enterprises enter
relevant markets. Meanwhile, the United Kingdom attracts foreign direct investment
in key areas such as 5G, IoT, photonics and mixed reality. To augment the UK’s
strength in science, research and innovation and better adapt to “new normal” in the
post-pandemic era, in July 2020, the United Kingdom released UK Research and
Development Roadmap, declaring that it would invest another 7 billion pounds in
R&D from 2021 to 2022 and increase the total R&D investment to 2.4% of GDP by
2027. Eight British cybersecurity corporations are listed in the Hot 150 Cybersecurity
Companies.
The United Kingdom strives to build “a leading full-spectrum network power”
and continues to strengthen the construction of defensive and offensive network
capabilities. The University of Bristol of the United Kingdom successfully establishes
“super safe quantum network” that works in cities in Bristol. The network can connect
more than eight users within a radius of 17 km, realize the application of quantum
cryptography among multiple users, and ensure the security of quantum Internet.
The experiment is regarded as a landmark in the course of full-quantum-Internet
construction.
In cyberspace governance, in May 2021, British government announced the forth-
coming of a new law Online Safety Bill. The Bill stipulates that if social-media enter-
prises fail to root out racism, hate crime and other abuses, they may be fined 10% of
the maximum turnover or 18 million pounds and face actio criminalis.
1.3.4 Japan Accelerates the Construction of Digital Society
In “The Scores of World Internet Development Index”, Japan ranks the 11th in the
world. Specifically, it ranks the 13th in the score of information infrastructure index,
the 2nd in the score of innovation capacity index, the 17th in the score of industrial
development index, the 10th in the score of Internet application index, the 13th in
the score of cybersecurity index and the 8th in the score of cyberspace governance
index. Figure 1.4 shows the scores of Internet Development Index of Japan.
Japan owns complete infrastructure. Presently, the infrastructure of Japan’s
optical-fiber communication is a backbone network that only comprises IPv6, and
IPv6 infrastructure is basically constructed. In Japan, four state-owned telecom oper-
ators have furnished daily IPv6 services to citizen’s mobile phones. In 2020, Soft-
Bank and KDDI, two major mobile operators in Japan, announced that they planned
to invest 38 billion U.S. dollars in 5G network in next ten years, so as to keep pace
with the world’s top level in the field of ultra-high speed mobile communications.
Simultaneously, Japan quickens the R&D of 6G. In the number of top 500 supercom-
puting corporations, Japan follows after China and the United States. However, the
network download rates of fixed broadband and mobile broadband in Japan remain
low.
Japan energetically promotes the development and application of Internet tech-
nology. Japan forges top-class technological strength in AI, quantum computing,
ICT, basic research and other fields. Particularly, the R&D investment accounts for
a large proportion of GDP. Under the impact of the COVID-19 pandemic, Japan
steps up the efforts to improve legal environment for digital society, with deeper
penetration of Internet application. In the COVID-19 pandemic, IT enterprises in
Kanagawa successively develop teleworking-service systems to meet the needs of
enterprises for teleworking, such as handling customers’ consultation and providing
Fig. 1.4 The scores of internet development index of Japan

40 1 Overview
services free of charge. Besides, Japan increases capital investment to ICT applica-
tion in schools and the information-based development of small and medium-sized
enterprises.
In recent years, Japan has attached more importance to cybersecurity and carried
out long-term and in-depth cooperation with the United States, the European Union
and the United Kingdom. In 2020, Japan issued The Act on Promoting the Develop-
ment, Supply and Introduction of Specific Advanced Information Communications
Technology Application Systems, which certified whether cutting-edge-technology
R&D enterprises could meet the requirements for cybersecurity and provide stable
services, highlighted cutting-edge-technology R&D enterprises in the fields of 5G
and UAV, strictly prevented the leakage of cutting-edge-technology information, and
boosted the healthy development of cutting-edge-technology enterprises.
In cyberspace governance, in May 2021, Japan passed six acts related to digital
reform and decided to organize Digital Agency in September 2021, which would
become a control tower for digital reform in Japan. In June 2020, Japan revised
the Act on the Protection of Personal Information and The Copyright Law to better
meet new requirements of the development of Internet and digital technology for the
protection of personal information and copyright. In September 2020, Japan started
to implement a package of measures to combat cyber violence. Japan explicitly
stipulates for the first time that perpetrators of cyber violence have their mobile phone
numbers and other personal information legally disclosed, and network platforms
have the obligation to provide the above-stated information when necessary.
1.3.5 Internet Application in India Develops Rapidly
In “The Scores of World Internet Development Index”, India ranks the 19th in the
world. Specifically, it ranks the 35th in the score of information infrastructure index,
the 16th in the score of innovation capacity index, the 19th in the score of industrial
development index, the 13th in the score of Internet application index, the 31st in
index. Figure 1.5 shows the scores of Internet Development Index of India.
According to The Boao Forum for Asia Innovation Report 2020, India keeps ahead
of other Asian countries in the performance of innovation. In April 2021, India set up
I-Hub QTF (Quantum Technology Foundation), a quantum-technology innovation
center, which focused on developing quantum computers, quantum communication
devices and systems and researching new quantum materials and sensors.
To foster the development of Indian manufacturing industry, in 2020, Indian
government declared a plan to reward smartphone manufacturers who increased
output. What were used as incentives accounted for 4–6% of the value of mobile
phones. Major electronic manufacturers like Apple, Xiaomi and HP all operate
factories in India. Yet, in the first half of 2021, India suffered a heavy blow by
the COVID-19 pandemic, which immensely buffeted relevant enterprises. As Indian
Fig. 1.5 The scores of internet development index of India
government suspended the import of Wi-Fi modules from other countries, manufac-
turers like Dell, HP, Xiaomi, OPPO, vivo and Lenovo had to postpone the launch of
new products in India.
E-commerce has great potential for growth in India. In recent years, the annual
retail sales of e-commerce business in India reached 30 billion U.S. dollars,
accounting for c. 3% of the total retail sales in consumer market. Predictably, India’s
e-commerce business will expand at a rate of 30% every year, and by 2026, online
retail sales will exceed 200 billion U.S. dollars. Amazon is the largest online shop-
ping platform in India, with 323 million monthly active users. Walmart’s Flipkart
has 231 million monthly active users. In digital payment, Research and Markets,
an international market research institution, released Report on the Trend of Indian
Digital Payment Market. As the Report demonstrated, more than 80% of urban citi-
zens would choose digital payment by the end of 2020, and the transaction volume
of digital payment industry would reach 700 billion U.S. dollars by the end of 2022.
In cybersecurity, Indian cybersecurity enterprises possess tremendous strength.
By October 2020, Tata Consultancy Services, the largest Indian operator in India, had
established ten cybersecurity centers in the world to provide cybersecurity services
for corporate customers.
1.3.6 Russia Makes Steady Progress in Internet Development
In “The Scores of World Internet Development Index”, Russia ranks the 22nd in the
world. Specifically, it ranks the 33rd in the score of information infrastructure index,
the 19th in the score of innovation capacity index, the 34th in the score of industrial
index. Figure 1.6 shows the scores of Internet Development Index of Russia.
42 1 Overview
Fig. 1.6 The scores of internet development index of Russia
In infrastructure, Russia launches 5G-network pilot and starts planning satellite

Internet. In July 2020, MTS, a Russian telecom network operator giant, obtained the
first 5G license, which allowed it to build 5G commercial networks in 83 regions
of Russia. In March 2021, MTS staged a 5G pilot network for mass consumers
in Moscow, which became the first 5G pilot network in Russia. In 2021, Russia
effectuated “Sfera” Program and built a satellite constellation that comprised 640
satellites. In April 2021, Roscosmos announced to realize the full coverage of Russia
in satellite communication and broadband satellite Internet by 2024 as planned.
In Internet application, e-commerce develops dramatically in Russia. According
to the data of Russian Association of Internet Trade Companies, in 2020, the scale
of e-commerce in Russia reached 3.221 trillion rubles, accounting for 9.6% of the
total sales of domestic retail market. As estimated, by the end of 2021, the scale
of e-commerce in Russia would reach 3.745 trillion rubles. In particular, in 2020,
the transaction volume of Russian domestic e-commerce market achieved 2.781
trillion rubles, accounting for 86% of the total sales of Russian e-commerce market.
Simultaneously, the COVID-19 pandemic resulted in the shortage of goods and the
block to transportation, with the proportion of cross-border trade dropping from 29%
in 2019 to 14%.
In industrial development, Russia implements the import substitution strategy for
domestic software and hardware products in a fast way, establishes “Information
Communications Technology Import Substitution Management Center” (TsKICT),
organizes “Domestic Software Developer Association”, and builds “Russian Soft-
ware Compatibility Directory Website”, so as to provide convenient services for the
promotion of domestic software in Russia. In May 2020, Russia released the timetable
for the shift to domestic software and hardware products, and would complete the
shift to domestic devices by January 1, 2025, as planned.
In cybersecurity, Russia continues to improve the deployment in cybersecurity
and regards cybersecurity as a national strategy. In July 2021, Russia promulgated
the latest National Security Strategy of the Russian Federation, which listed infor-
mation security as one of the nine strategic priorities to ensure national security.
Russian government establishes a national domain-name management center, attracts
large corporations like Rostelecom and Rostec to participate in Internet construction,
and forges Russian national domain name system. Noticeably, “.pf” domain name
effectively ensures the stable operation of “Runet” under external impacts.
In cyberspace governance, Russia vigorously improves domestic governance
level and actively participates in global cyberspace governance. Additionally, Russia
enhances data governance and social-media regulation. In February 2021, Russia
released The Federal Administrative Crime Law to increase the punishment for viola-
tions of data-processing regulations. In April 2021, Putin signed The Basic Principles
of State Policy on International Information Security, which clarified Russia’s basic
views on the nature of international information security as well as Russia’s policies
and goals.
1.3.7 Vietnam Sees Fast Development of Internet Economy
In “The Scores of World Internet Development Index”, Vietnam ranks the 32nd in the
world. Specifically, it ranks the 32nd in the score of information infrastructure index,
the 36th in the score of innovation capacity index, the 21st in the score of industrial
index. Figure 1.7 shows the scores of Internet Development Index of Vietnam.
In recent years, Internet has injected vitality into Vietnamese economic, cultural
and social development. In 2021, Vietnam started to deploy 5G network on a large
scale. According to the research of Vietnam’s National Institute of Information and
Communications Strategy, by 2025, the contribution rate of 5G to Vietnamese GDP
Fig. 1.7 The scores of internet development index of Vietnam

44 1 Overview
growth would jump to 7.34%. In 2020, the total business revenue of Vietnamese
Internet economy totaled 14 billion U.S. dollars, of which the business revenue of
e-commerce hit a record high of 7 billion U.S. dollars.43 According to the statistics
of Vietnam Trade Promotion Agency, under the impact of the COVID-19 pandemic,
the turnover of various markets in Hanoi diminished by 50–80%. Meanwhile, some
enterprises realized a growth of 20–30% in the business income from online sales on
e-commerce platforms. According to the research of Kantar Worldpanel, the online
orders of e-commerce platforms like Shopee, Tiki and Lazada soared. Tiki received
3000–4000 new orders per minute at whiles.
According to the statistics of Digital 2021, the number of Internet users in Vietnam
amounts to 68.72 million, accounting for around 70% of the total population. 94%
of Internet users surf the Internet for an average of six hours a day. In the COVID-19
pandemic, Vietnamese technological enterprises and media departments broadcast
TV courses at appropriate times, and provided auxiliary educational management
for tens of thousands of schools as well as host computer and broadband services
for free, which promoted the popularization of network applications in relation to
learning and life in Vietnam.
In order to safeguard cybersecurity, especially the security of major international
events hosted by Vietnam, Vietnamese governmental departments and branches as
well as various regions deploy Security Operation Centers (SOCs) with the help of
Information Security Agency to screen and address malicious software in Vietnam’s
cyberspace, and publish technological standards on terminal, base station and 5G
network service quality.
1.3.8 In Latin America, Mexico Enjoys Rapid Internet

Development
In “The Scores of World Internet Development Index”, Mexico ranks the 38th in the
world. Concretely, it ranks the 34th in the score of information infrastructure index,
the 32nd in the score of innovation capacity index, the 30th in the score of industrial
development index, the 23rd in the score of Internet application index, the 44th in
index. Figure 1.8 shows the scores of Internet Development Index of Mexico.
According to Global Innovation Index (GII) 2020, Mexico’s rankings rises to the
55th in the world and the 2nd in Latin America (second to Chile) in comprehensive
strength. Located in the U.S.-Mexico-Canada Free Trade Zone, Mexico possesses the
advantage for opening foreign-funded enterprises and attracts the investment from
Microsoft, Equinix and other data-center corporations. Accordingly, Mexico boasts
43“Vietnamese Government Strives to Create All Conditions for Internet Development to Achieve
Universal Internet Popularization”, published at Communist Party of Vietnam Online Newspaper,
December 20, 2020. https://cn-daihoi13.dangcongsan.vn/news/story-1045.
Fig. 1.8 The scores of internet development index of Mexico
one of three Latin American countries with private R&D corporations, in comparison
with most countries that promote innovation and R&D with public investment.
Mexico owns two Unicorns in digital industry, i.e. Kavak, a second-hand car
platform, and Bitso, a virtual currency exchange. Kavak’s total financing exceeds
900 million U.S. dollars. The COVID-19 pandemic accelerates the development of
Mexican Internet economy and the course of corporate digital transformation. In
Mexico, four industries, i.e. e-commerce, online game, social-media advertising and
Fintech, develop fastest. Particularly, in Fintech, Mexico is a front-runner in Latin
America. The creation of Banco Azteca Application Programming Interface (API)
Platform signals the transformation of Mexican financial industry.
In line with the United States-Mexico-Canada Agreement, Mexico establishes a
cyber-incident-response mechanism with the United States and Canada to bolster
the cooperation in identifying and combating malicious code attacks. Internally,
Mexico continuously enhances the training of cybersecurity among enterprises and
significantly improves the level of cybersecurity.
1.3.9 Kenya Takes the Lead in Africa in Internet Strength
In “The Scores of World Internet Development Index”, Kenya ranks the 44th in the
world. To be specific, it ranks the 42nd in the score of information infrastructure
index, the 44th in the score of innovation capacity index, the 39th in the score of
industrial development index, the 46th in the score of Internet application index,
the 37th in the score of cybersecurity index and the 43rd in the score of cyberspace
governance index. Figure 1.9 shows the scores of Internet Development Index of
Kenya.
Kenya is one of the largest mobile network markets in Africa, with a high pene-
tration rate and a popularization rate of mobile phones and Internet. According
46 1 Overview
Fig. 1.9 The scores of internet development index of Kenya
to Network Readiness Index 2020, Kenya scores 43.22 in comprehensive index

and ranks the 82nd in the world, with good performance in government-level and
business-level Internet applications. Telkom Kenya has applied Google’s Project
Loon network service to achieve 4G mobile-service coverage. In March 2021, a
Kenyan communication operator staged a 5G Service Launch Ceremony in the capital
Nairobi, with Kenya becoming the second country in Sub-Saharan Africa to launch
5G services after South Africa.
Now, the scale of Kenyan e-commerce market keeps expanding, with local e-
commerce market dominated by local African e-commerce giants. Kenyan mobile
financial service plays a leading role in ITFIN. Notably, mobile payment and cash-
loan services represented by M-Pesa provide convenient financial services for the
public.
Presently, Kenya faces a substantial number of cybersecurity threats. In September
2020, Kaspersky Lab published new data, which confirmed that Kenya encountered
more than 25% of two million cyberattacks in Africa. In the second quarter of 2021,
Kenya suffered more than 500,000 phishing attacks.
1.3.9.1 The European Union Expedites Digital Transformation Strategy
The European Union basically realizes full-coverage of network. Yet, the deployment
of optical-fiber network and 5G network lags behind, with the prominent problem of
out-of-date communication devices. In the COVID-19 pandemic, online consump-
tion of videos and games expanded. Therefore, many online video-service providers
like Netflix, YouTube and Disney had to lower the video-code standards in Europe
and adjust video definition from “high definition” to “standard definition”, so as to
address the problem of network overload. In this regard, EU member states reached
an agreement to start an economic-recovery fund of up to 750 billion euros and
increase investment in scientific and technological areas like 5G, 6G and AI.
1.4 Trends in World Internet Development 47
The European Union attaches great importance to personal data privacy, monop-
olistic rules and data security, and adopts a strong-regulation strategy. In recent
years, the European Union has released many documents to strengthen data-security
management, e.g. General Data Protection Regulation, EU Regulation on the Free
Flow of Non-personal Data and EU Cybersecurity Act. In December 2020, the Euro-
pean Union issued The EU’s Cybersecurity Strategy for the Digital Decade. Giving
suggestions on regulation, investment and policy tools, The EU’s Cybersecurity
Strategy for the Digital Decade aimed to improve EU’s cyber resilience, technolog-
ical sovereignty and leadership, and build EU’s capacity in preventing, curbing and
addressing cybersecurity incidents. Additionally, the European Commission passed
a proposal to revise Directive on Security of Network and Information Systems (NIS
2 Directive) to solve cybersecurity problems on supply chain and supplier relations.
The European Union prioritizes the digital transformation of industries. Within the
framework of “strategic autonomy”, the European Union accelerates the construc-
tion of Digital Sovereignty for Europe in an all-round way, and releases master
plans to guide Europe to adapt to the digital era, such as Shaping Europe’s Digital
Future, A New Industrial Strategy for Europe, A European Strategy for Data and
White Paper on Artificial Intelligence. These aim to re-define and enlarge digital
sovereignty, quicken the launch of optical-fiber and 5G networks, and invigorate
European economy hammered by the COVID-19 pandemic.
The European Union has placed a premium on Internet governance and accel-
erated making rules in the field of digital economy. In December 2020, the Euro-
pean Union published two drafts of Digital Services Act and Digital Markets Act,
which strengthened the regulation of Internet content and monopolistic behaviors
respectively. In April 2021, the European Union launched the proposal of Artificial
Intelligence Act, which took different regulatory measures for AI systems at different
risk levels. In 2020, the European Union successively started antitrust investigations
against Internet giants like Google and Facebook, and imposed huge fines on them.
1.4 Trends in World Internet Development
In the post-pandemic era, international landscape evolves dramatically, and unilater-

alism and protectionism emerge, which cripple global industrial chains and supply
chains. New-round scientific and technological revolution and industrial transforma-
tion deepen, data resources become new production factors, information technology
fuels new innovation, and digital economy serves as a new economic engine. Cyber-
security faces new challenges, which profoundly reshapes global economic pattern,
interests pattern and security pattern. In the future, various countries in the world
should esteem Internet as common home to mankind, enhance the awareness of “a
community with a shared future in cyberspace”, jointly address the risks and chal-
lenges in cyberspace with a more positive attitude, jointly build a peaceful, safe,
open, cooperative and orderly cyberspace, and work together to create a better future
for mankind.
48 1 Overview
1.4.1 The Competition on Digital Infrastructure Intensifies

and Necessitates Deeper Interconnectivity
Digital infrastructure becomes increasingly ubiquitous, with more prominent status

and value. As the development pattern of space-air-ground integrated network
(SAGIN) further improves, SAGIN serves as an important engine or arena, in which
various countries vie for technological dominance, forge new economic advan-
tages and obtain discourse power in global development. Several countries politi-
cize the construction of digital infrastructure, which aggravates the fragmentation
of cyberspace and polarizes related technologies, standards and security issues.
The disparity in digital development enlarges between developed and developing
countries.
China proposes to make more active, comprehensive, coordinated and inclu-
sive policies, quicken the construction of global digital infrastructure, continuously
improve interconnectivity, and keep the arteries of economic activities unclogged.
China promotes cooperation among various countries in the field of communication
infrastructure such as optical-fiber backbone network and international submarine
cable, and expands Internet access and connectivity on the basis of respecting national
cyber sovereignty and national cyber policies, so that more developing countries and
more people can share development opportunities from Internet. China encourages
experience-sharing and cooperation in responding to public emergencies such as
pandemics and natural disasters with the use of digital technologies, and improves
public services such as culture and education, environmental protection, urban plan-
ning, community management and health care with the use of digital technologies.
China calls on various countries to ensure the availability and reliability of basic
Internet resources and advance jointly managing and fairly distributing basic Internet
resources among international community. China actively applies laws, regulations
and standard rules to guide new application of new technologies such as AI, IoT and
next-generation communication network and to stimulate international cooperation
in technological standards and ethical norms. China promotes cooperative initiatives
such as digital technology for tourism recovery and boosts common development of
global digital infrastructure.
1.4.2 Digital Transformation Progresses Quickly in Various

Countries and Necessitates Common Prosperity
The cross-border integration of new-generation information technology, biotech-

nology, new-energy technology and new-material technology breeds the innova-
tion on future technologies and the development of emerging industries, contin-
ually expands new boundary of human existence and development, helps people
better understand “deep sea, deep space, deep earth and deep sky”, and deeply alters
people’s production and life. New technologies, new business forms and new plat-
forms like 5G, AI and smart city thrive. “Non-contact economy” like online shop-
ping, online education and telemedicine develops fast in an all-round way. Digital
economy integrates with and penetrates into other industries, giving new impetus
for global economic growth. It is noteworthy that some countries view technological
development as a matter of values and ideology, and restrict regular technological
cooperation and exchanges between boffins. This impairs global technological and
economic cooperation, intensifies technological and economic confrontation among
countries, and amplifies the risk of global economic cold war. Digital development
remains unbalanced and inadequate in various countries, and digital divide between
regions, groups and enterprises tends to widen.
China proposes to strengthen cooperation in the digital field, seize the opportuni-
ties of new-round scientific and technological revolution and industrial transforma-
tion, enlarge technological exchanges and cooperation, share the experience of using
digital technology to combat the pandemic and realize economic recovery, release the
potential of digital economy, bridge digital divide, give full play to digital economy’s
role in empowering various industries, and provide new impetus for global economic
recovery. China calls on various countries to unclog trade channels and reduce market
access barriers and other barriers. To promote the development of cross-border e-
commerce, China explores to establish information sharing and mutual trust and
certification mechanisms, and encourages the use of safe and reliable digital means
to facilitate cross-border trade. China enlarges the exchanges and sharing of experi-
ence in Internet-assisted targeted poverty alleviation to advance international coop-
eration in poverty alleviation. China advocates the development of products and
services suitable for the elderly, the disabled, women and children, and adopts a
variety of policies and measures and technological means to improve the digital
skills of vulnerable groups and promote the popularization and progress of public
digital literacy. China gropes for the formulation of legal standards and principles on
digital currency in an open and inclusive manner. China gives play to the driving role
of digital economy, creates new development momentum with the use of scientific
and technological innovation and digital transformation, consolidates cooperation in
the fields of digital economy and climate change, and fosters the robust, sustainable,
balanced and inclusive development in the world.
1.4.3 Cross-cultural Communication Encounters New

Challenges and Necessitates Exchanges and Mutual
Learning
Owing to the COVID-19 pandemic, global economic development remains list-

less. In foreign policies, some countries tend to adopt more conservative and xeno-
phobic stances. This undermines the groundwork of international communication
and cooperation and increases the uncertainty of cross-cultural communication to
50 1 Overview
varying degree. Simultaneously, governments of various countries continue to rein-

force the governance of Internet content and launch intensive activities in content
review, advertising and commercial law-enforcement, in order to deepen the reform
of international media landscape.
China proposes to build a bridge for international communication via Internet,
respect the diversity of cyber culture, calls on countries to tap their excellent cultural
resources for cyber exchanges and cooperation and mutual learning among civi-
lizations, forges an inclusive, open and diverse platform and mechanism for cyber
cultural exchanges, in a bid to promote emotional and spiritual exchanges among
people of all countries. China continues to organize cultural exchanges in various
forms, support exchanges and cooperation in education, culture, tourism, sports,
media, women and other fields, and promote non-governmental friendship. China
gives play to the advantages of Internet communication platforms, disseminates
excellent Chinese culture among people of all countries, and popularizes excel-
lent world cultures among Chinese people, so as to jointly boost the prosperity and
development of cyber culture, enrich people’s spiritual world, further the progress
of human civilization, and build Internet into a major form for the dissemination of
excellent human culture.
1.4.4 The Militarization of Cybersecurity Accelerates

and Necessitates the Orderly Development
of Cyberspace
The means of cyberspace warfare features concealment, which becomes the first
choice for various countries to mitigate the pressure of geopolitical competition
and expand national strategic space. Several countries intend to resolve cyber
disputes with their military strength, which aggrandizes the militarization of global
cyberspace. In the future, more countries endeavor to safeguard the security of
supply chains of them and their allies, and strengthen the localization and autonomy
of their supply chains. In cyberspace, non-technological confrontation intensifies,
global economy tends to move toward “limited globalization”, and the trend of frag-
mentation in cyberspace becomes more prominent. Software supply chain becomes
more complex and diverse, making it harder to protect overall security of informa-
tion systems, with emphasis on the protection of personal information in national
strategic layout.
China upholds the idea of open and cooperative cyberspace security, attaches equal
importance to security and development, and jointly safeguards the peace and secu-
rity in cyberspace. China encourages cooperation and dialogue at global, regional,
multilateral, bilateral and multi-party levels, jointly maintains the peace and stability
in cyberspace, enhances strategic trust among countries, combats cyberattacks and
cyber deterrence, deepens international cooperation in cracking down on cybercrime
and cyber terrorism, curbs the use of information technology to take part in acts
endangering the security and social and public interests of other countries, prevents
arms races in cyberspace, and creates a peaceful environment for development.
1.4.5 Trust Deficit in Cyberspace Enlarges and Necessitates

the Realization of Fairness and Justice
The adjustment and change of international landscape in cyberspace speed up.

Various countries face widening trust deficit in cyberspace, and trust mechanism
in cyberspace needs to be built urgently. Centering on such issues as digital
economy, data security, platform governance, technology governance and ICT supply
chain security, the rule-making accelerates. Green digital cooperation provides new
opportunities for international governance. The United Nations and other interna-
tional organizations have an active part in facilitating cyberspace governance, and
governance model of multilateral and multi-party participation generates positive
effects on cyberspace, in which the role of government in governance significantly
swells. As large Internet corporations continue to enlarge their influence, the game
between governments and Internet enterprises re-forges the landscape of cyberspace
governance.
China embraces multilateral and multi-party participation in international
cyberspace governance, adheres to digital innovation and inclusive development,
strengthens dialogue and consultation, further opens up a new paradigm of digital
cooperation, and jointly creates a new pattern of global cyberspace governance.
China supports the formulation of universally-accepted rules, norms and principles
of conduct for responsible states in cyberspace within the framework of the United
Nations. China gives play to the role of governments, international organizations,
Internet enterprises, technological communities, social organizations and individual
citizens, and jointly participates in international cyberspace governance. China builds
multi-channel communication platforms and newly initiates assistance and training
projects for international cyberspace governance within multilateral frameworks like
the United Nations, so as to help developing countries in need improve their capacity
in participating in international governance. On the basis of mutual respect and trust,
China further creates a new environment for digital cooperation, fosters the reform
of global Internet governance systems, jointly constructs a peaceful, safe, open and
cooperative cyberspace, and establishes a multilateral, democratic and transparent
global Internet governance system.
Chapter 2
World Information Infrastructure
Construction
2.1 Outline
Presently, human society has entered a new round of scientific and technological
revolution and industrial transformation. The construction of new information infras-
tructure represented by 5G, artificial intelligence (AI), Internet of Things (IoT) and
industrial Internet gives a new impetus for global economic growth. The sustainable
development and accelerated evolution of information infrastructure have laid a foun-
dation for the advent of global digital economy. Developed countries have accelerated
the deployment of new-generation network facilities, big data, AI and other technolo-
gies, while emerging and developing countries have strengthened their investment in
the infrastructure in digital transformation to continuously improve their competitive
advantages. Information infrastructure is facing great changes such as the transfor-
mation of old and new kinetic energy, the adjustment of development focus and
the innovation of operation models. Its endogenous kinetic energy expands from
traditional network technologies to new-generation information technologies such
as big data, AI, cloud computing and IoT. The focus of development shifts from
traditional network indicators such as bandwidth and speed to ecological indicators
that closely relate to urban management and the services for people’s livelihood.
Business operators extend from traditional telecom operators to Internet enterprises,
industrial leading enterprises and other entities, which forms multiple development
drivers, multi-dimensional evaluation standards and diverse service forms.

https://doi.org/10.1007/978-981-19-9323-7_2
54 2 World Information Infrastructure Construction
2.2 The Evolution and Upgrading of Communication

Network Infrastructure Accelerate in an All-Round
Way
The construction of global network infrastructure quickens, the deployment of 5G

network achieves remarkable progress, fixed broadband enters the optical-fiber era,
universal telecommunications service advances in an orderly way, the construction
of Satellite Internet that consists of high orbit and low and medium orbit constella-
tions and low-orbit-satellite IoT speeds up, and satellite navigation systems continue
to be upgraded and updated. Various countries are solidifying their space infrastruc-
ture and international network-expansion capabilities, and building space-air-ground
integrated network (SAGIN) that covers the globe.
2.2.1 5G Development Comes to a New Stage
Major economies in the world have attached great importance to 5G development. 5G

has entered the commercial stage in all respects in which the large-scale deployment
and application of networks deepen and expand. In April 2021, 3GPP, a standardiza-
tion organization, officially identified the name of 5G evolution as 5G-Advanced at
the 46th Project Coordination Group (PCG) Meeting, which signaled that the devel-
opment of global 5G technologies and standards came to a new stage. As the data
of Global mobile Suppliers Association (GSA) suggested, by the end of May 2021,
443 telecom operators in 133 countries and regions had invested in 5G, of which 169
telecom operators in 70 countries and regions had launched 5G commercial services.
China has built the largest 5G Standalone (SA) Network in the world, run 961,000 5G
base stations as totaled, and promoted the construction of more than 400,000 shared
base stations,1 with the number of 5G terminal connections reaching 365 million.
AIS, a Thai operator, stated in the performance report for the first quarter of 2021
that iPhone 12 became the main driving force for increased 5G users. The number
of 5G users totaled 719,000, which tripled over the first quarter of 2021 and rose by
200% over the fourth quarter of 2020.
According to the data released by European Telecommunications Standards Insti-
tute (ETSI), by May 2021, 32,367 patent clusters and 146,866 5G essential patents
had been disclosed globally. The top 10 corporations were Huawei, LG Electronics,
Qualcomm, ZTE, Samsung Electronics, Nokia, DTT, Ericsson, OPPO and vivo. In
August 2021, Fortune published the latest ranking of the world’s top 500 globally.
A total of 16 corporations in the global telecommunications industry were on the
list, breaking even with 2019 and 2020. To be specific, AT&T (the United States),
Verizon (the United States) and Deutsche Telekom AG ranked top three in the sub-list
1Data Source: The Ministry of Industry and Information Technology of the People’s Republic and
China.
2.2 The Evolution and Upgrading of Communication Network … 55
of telecommunications industry, ranking the 26th, 44th and 53rd in the global list
respectively. China Mobile, China Telecom and China Unicom, three basic telecom
corporations in China, were all on the list again, and their rankings were higher than
that in 2020, ranking the 56th, 126th and 260th respectively on the global list.
2.2.2 Fixed Broadband Network Enters the Optical-Fiber Era
Various countries in the world actively promote the deployment of high-speed broad-
band networks, and fixed broadband networks march towards the gigabit era of “Fiber
to Everywhere”. On the basis of the report of Point Topic, a market research firm,
by the end of 2020, the number of global fixed broadband connections had reached
1.18 billion, growing by 1.6% quarter on quarter. In particular, the highest growth
rate of optical broadband occurred in developing markets, and the quarterly growth
rates of the United Kingdom, France and Italy reached higher than 10%. In the total
number of fixed broadband users, the top 10 countries were China, the United States,
Japan, Germany, Russia, Brazil, France, the United Kingdom, India and South Korea.
Presently, the proportion of administrative villages connected with optical fiber and
4G in China has exceeded 98%, and the arrival rates of optical fiber and 4G coverage
rates have been basically leveled up in urban and rural areas. The International
Telecommunication Union (ITU) and A4AI co-released The Affordability of ICT
Services 2020, which demonstrated that the user burden of China’s fixed broadband
ranked the 4th in the world (from the lower level to the higher level), and that the
communication tariff remained an internationally low level.
2.2.3 The Popularization and Deployment of IPv6 Accelerate
As the IPv4 address resources are gradually depleted, the requirements for network
security and network-service quality continue to rise. Various countries in the world
fully acknowledge the urgency and importance of deploying IPv6, publish national
development strategies, clarify development roadmaps and timetables, and actively
advance the large-scale commercial deployment of IPv6. Developed countries and
regions like the European Union, Japan, the United States, South Korea and Canada
have issued relevant “IPv6 Action Plan” or “IPv6 Development Plan”. According to
the statistics of APNIC Labs, by July 2021, the IPv6 deployment rate had exceeded
28% globally, exceeded 40% in some representative countries and regions in Europe,
America, Asia and Oceania, exceeded 40% in 16 countries and regions, exceeded
30% in 25 countries and regions, and exceeded 20% in 39 countries and regions. In
Asia, South Asia boasted the highest IPv6 deployment rate, with an overall level of
61.27%, whilst East Asia and Southeast Asia reached 22.64% and 21.23% respec-
tively in this regard. In America, North America realized an IPv6 deployment rate
of 47.51%, and Central America and South America achieved 35.26% and 25.88%
respectively. In Europe, Western Europe owned a high-level IPv6 deployment rate

(44.53%), which reached 27.60% in Northern Europe, and 11.38% and 9.49% in
Eastern Europe and Southern Europe respectively.
2.2.4 The Deployment of Space-Air-Ground Integrated

Network (SAGIN) Speeds Up
Globally, the competition of space information infrastructure among various coun-

tries turns white-hot. As the global satellite-application industry mushrooms, and
the strategic significance and role of satellite frequency and orbit resources emerge,
for which international community vies in a fiercer way. In international rules, a
country takes precedence in the use of satellite frequency and orbit resources if it
applies for that first. Therefore, major commercial satellite corporations take the
deployment of low-orbit satellite constellation as an important way to carry out
SAGIN construction and scramble for orbit resources. In 2020, “Athena” Internet
Satellite from PointView Tech LLC, a subsidiary of Facebook, was approved by the
Federal Communications Commission (FCC) of the United States. In September
2020, “Athena” Project launched the first Small Spacecraft Mission Service (SSMS)
via Vega Launch Vehicle operated by Arianespace, after which the satellite success-
fully entered the scheduled orbit. In March 2020, the FCC authorized SpaceX to
build the ground antenna as required to connect users to its Starlink Satellite Internet
Network. By May 2021, Starlink had launched 1737 satellites in total, accounting
for half of the number of on-orbit satellites in the world, with more than 500,000
subscribers. In a month, SpaceX can manufacture 120 Starlink satellites and develop
and produce thousands of user terminals, with an investment of more than 70 million
U.S. dollars. Besides, SpaceX will provide Starlink services in the southern United
States. In July 2020, the FCC announced the approval of Amazon’s Internet Satellite
Program. Amazon’s Project Kuiper will launch 3236 satellites into low-altitude orbit
in five stages. On condition that 578 of them enter the orbit, broadband services are
available. In May 2021, OneWeb, a British satellite communications corporation,
launched 36 satellites (the 7th batch) via Russia’s “Alliance-2.1b” Launch Vehicle,
with a total of 218 on-orbit satellites.
The development of satellite navigation systems forms a new paradigm. In October
2020, Russia launched the third-generation Uragan-K satellite, which served as a
navigation constellation of GLONASS, Russian Global Navigation Satellite System,
numbered GLONASS Uragan-K No. 15L. Uragan-K satellite tremendously strength-
ened the signal coverage of GLONASS and remarkably enhanced the signal stability.
In November 2020, as reported, Japan planned to launch three more satellites for
Quasi-Zenith Satellite System (QZSS) and build a seven-satellite constellation by
the end of March 2024 to establish Japanese satellite positioning system. In June
2021, the U.S. SpaceX “Falcon 9” Rocket launched the 5th GPS III satellite, only
2.3 Competition in Computing Infrastructure Increasingly Intensifies 57
seven months after the launch of the fourth one. In comparison with other GPS satel-
lites in operation, GPS III satellites prove safer, with accuracy increased by three
times and the anti-interference ability increased by eight times. This prominently
improved civil signal. China’s BeiDou Navigation Satellite System (BDS) actual-
ized global networking in 2020. Applied to more diverse industries and cases, BDS
basic products have been exported to 120 countries and regions.
With regard to sky communications, the ideas of unmanned aerial vehicle and
balloon are used to provide Internet services. Space information resources are viewed
as vital strategic resources in countries. Since SAGIN has a far-reaching impact
on national economy and national defense security, major countries expedite the
construction and deployment of SAGIN. European countries and the United States
as well as large Internet corporations reinforce the R&D of space technologies like
satellites, floating platforms and unmanned aerial vehicles, boost the deployment
of high-throughput broadband satellites and mobile broadband satellites, and forge
global seamless SAGIN. In July 2021, Mihe Town, Gongyi City, Henan Province,
China, was plagued by large-scale heavy rainfall, which incurred the communication
interruption. UAVs for Emergency Preparedness and Disaster Relief undertook the
urgent task to support the disaster-hit area and establish an “air base station” in the
disaster-hit area, which achieved continuous mobile-signal coverage of around 50
square kilometers.
2.3 Competition in Computing Infrastructure Increasingly

Intensifies
As the application of new technologies like 5G, cloud computing and AI accel-
erates, data traffic comes to a new stage of explosive growth. Global data centers
develop quickly in a large-scale, green and energy-saving way. Mainstream manu-
facturers promptly construct heterogeneous computing ecosystems. Spurred by busi-
ness demand and technological innovation, the deep integration of cloud, network
and edge computing signals an important trend in the future. The fast growth of
massive data necessitates the construction and upgrading of computing infrastruc-
ture. In the infrastructure of cloud computing, data center, edge computing and high-
performance computing, the rivalry between various countries becomes more intense.
Global giants in Internet industry tighten up on the control of technological exports
and strive to establish their core roles in the field of network infrastructure.
2.3.1 Cloud Computing Plays a Crucial Role in Computing

Infrastructure
Global cloud computing market continues to develop fast. The core of cloud-
computing industrial chain lies in cloud-service manufacturers. The manufacturers in
China and the world include Internet corporations like Amazon, Microsoft, Google,
Facebook, Apple, Alibaba and Tencent, which provide elastic computing, network,
storage, application and other services. Simultaneously, Internet-data-center manu-
facturers provide them with basic computer rooms, equipment, water and electricity
and other resources. In April 2021, Gartner, an international research institution,
released the latest report, which indicated that cloud computing grew rapidly in
China, and that Chinese technological corporations accounted for half of the world’s
top six cloud-computing manufacturers. Among them, in cloud ranking, Alibaba
ranked the 3rd in the world and the 1st in the Asia Pacific Region, with a market
share of 9.5%, higher than Google’s 6.1%. In May 2021, IDC released Worldwide
Semiannual Public Cloud Services Tracker, which suggested that in 2020, global
cloud computing market increased by 24.1% year on year, and the total revenue
reached 312 billion U.S. dollars. The total revenue of top five public cloud service
providers in the world (Amazon Web Services, Microsoft, Salesforce.com, Google
and Oracle) accounted for 38% of global revenue, with a year-on-year increase of
32%.
2.3.2 Data Centers Become Important Computing

Infrastructure
Data centers play a key role in data storage and circulation. By the end of 2020,
the number of super-large-scale data centers in the world had risen to 541, with
the highest growth rate in EMEA (Europe, the Middle East and Africa) and the
Asia Pacific Region. In the past year, 15 countries have built new super-large-scale
data centers, of which the United States, South Korea and Switzerland possessed
the largest number of new data centers. In the COVID-19 pandemic, the investment
in the construction of data center bounds. In the first half of 2020, 26 super-large-
scale data centers were put into operation. Additionally, 176 data centers were being
planned or constructed. The latest data of Synergy Research Group, a market research
organization, discloses that the number of super-large-scale data centers operated by
20 major cloud and Internet service corporations in the world has increased to 597.
Corporations with the widest coverage of data centers are Amazon, Microsoft, Google
and IBM, all of which have 60 or more data-center nodes and own at least three data
centers in North America, the Asia Pacific Region, EMEA and Latin America.
The Compound Annual Growth Rate (CAGR) of global data volume reached
approximately 50% in the past ten years and remained 26% in the past five years,
with high growth rate of data flow in the corresponding period. Stimulated by the
2.3 Competition in Computing Infrastructure Increasingly Intensifies 59
increase of data volume, the demand for global data centers maintained an annual
growth rate of 15–20%, and the demand for data centers in China realized an annual
growth rate of more than 30%. In regard to global data-center market, third-party data
centers like Equinix and DLR become major suppliers. With respect to data-center
market in China, telecom operators maintain a dominant position in the market, with
a total market share of more than 70%. Third-party data centers emerge rapidly,
and listed companies like Global Data Solutions (GDS), SINNET, BAOSIGHT and
@hub swiftly expand their investment scale.
2.3.3 Edge Computing Becomes Indispensable Infrastructure
Edge computing, an emerging technology, has attracted wider attention with the rapid
development of 5G and industrial Internet. In the use cases of numerous industries,
edge computing plays a vital role, e.g. road management and automatic driving in
smart transportation, quality detection and equipment monitoring in smart manu-
facturing process, disease monitoring and auxiliary diagnosis in smart medical care
and so on. Triggered by the demands for IoT and AI, edge computing will show
an exponential growth in the future. Data Age 2025 released by IDC states briefly
that global data volume will reach 175ZB in 2025. Gartner predicts that by 2025,
more than 75% of the data will be processed on the edge, which poses tremendous
development opportunities for edge computing industry.
In April 2021, IDC released 2020 PRC Edge Computing Server Tracker, which
demonstrated that the five-year CAGR in global edge computing server market
reached 19.6%, much higher than the growth rate of core infrastructure, with great
market development potential. Besides, the edge computing server of Inspur ranked
the 1st in China, with a market share of 32%. In July 2021, Global Industry
Analysts, Inc. (GIA) issued the report Edge Computing: Global Market Trajectory
and Analytics, revealing that global edge computing realized market value of 3.4
billion U.S. dollars in 2020, as estimated. By 2026, the market value will amount
to 15.2 billion U.S. dollars, with a CAGR of 27.7%. In 2020, Intel initiated “AI
Computing Box”, a “box” that integrated software and hardware like CPU, Core-
GPU CPU and “ × 86” architecture computing power, and accelerated the devel-
opment of intelligent edge. After one-year ecological construction, edge AI-based
video analysis solutions have been applied in smart manufacturing, smart retail and
other fields.
2.3.4 The Market Scale of High-Performance Computing

Continues to Enlarge
In June 2021, the 57th edition of the TOP500 List was released. According to the
list, Japanese supercomputer “Fugaku” topped the list for the third time. Grounded
its system in Fujitsu, “Fugaku” adopts ARM-architecture-based 48-core A64FX
processor. In down-sampling computing that is used in the field of AI, the peak
performance of “Fugaku” exceeds 1 EFlop per second. “Fugaku” boasts the first
supercomputer in the world whose computing power reaches the level of EFlop.
Perlmutter, developed by the Lawrence Berkeley National Laboratory of the United
States Department of Energy, ranked the 5th, firstly listed in top 10. Based on HPE
Cray “Shasta” Platform, Perlmutter adopts the heterogeneous system that comprises
NVIDIA A100 40 GB GPU acceleration and AMD Milan CPU node. Perlmutter
successfully achieves the peak performance of 89.8 PFlop/s and sustains the perfor-
mance of 64.6 PFlop/s. Yet, its power consumption only reaches 2528 kW compared
with the top 4 supercomputers. In the 57th edition of the TOP500 List, the number
of supercomputers in China decreased from 212 in 2020 to 187, and the number of
supercomputers in the United States increased from 113 in 2020 to 122. In terms of
comprehensive performance index, supercomputers in the United States take the lead,
whose computing power rank the 1st so far. In June 2021, Tesla unveiled a new super-
computer, the “trailer edition” of the upcoming supercomputer Dojo. Dojo Project
consists of supercomputers with a computing speed of EFlop-level per second.
2.4 Global Deployment of New-Technology Infrastructure

Quickens
In recent years, major developed countries have strengthened the deployment of

cutting-edge fields like AI, blockchain, quantum information, smart manufacturing,
biological information and future network, continually increased R&D investment,
and designed industrial development in advance.
2.4.1 AI Becomes New Infrastructure that Guides Intelligent

Revolution
AI plays a strategic role in new-round scientific and technological competition, and

AI infrastructure resources that center on “data, algorithm, computing power and
platform” are in the spotlight. AI-related products and services are extensively used in
life, from multilingual translation software, intelligent speaker to automated driving
systems, urban security systems and city brain. Governments, enterprises and non-
profit institutions, which come to realize that “AI + ” functions as an important
2.4 Global Deployment of New-Technology Infrastructure Quickens 61
way to stimulate new demands, new business models and new economic growth
points, voluntarily embrace AI technology and sustainably invest in related industries.
Under the impact of the COVID-19 pandemic, various countries in the world have
accelerated the application of AI and the construction of AI infrastructure, and judged
the condition of the COVID-19 pandemic on the basis of data, which have produced
positive results.
Attaching great importance to AI, governments in various countries bolster and
encourage AI-intelligent-infrastructure construction, basic scientific research, talent
training, R&D funding, and industrial cooperation and exchanges. The United States
strives to maintaining a leading role in global science and technology, and places a
high premium on AI in its scientific and technological landscape. In July 2021, the
National Science Foundation (NSF) of the United States, who played the biggest
role in promoting non-defense AI R&D in the United States, announced again to
fund 11 new national AI research institutes, with a total investment of 220 million
U.S. dollars. Simultaneously, the institutional network extended to 40 states and
Washington D.C. The European Union focuses on fields such as industry, manu-
facturing, healthcare and energy, lays stress on innovation and creativity, and takes
advantage of AI to upgrade manufacturing and related industries in an intelligent
way. In February 2020, the European Commission released White Paper on Artifi-
cial Intelligence: a European Approach to Excellence and Trust, which proposed to
mobilize resources throughout the industrial chain via public–private-sector cooper-
ation, establish proper incentive mechanism, vigorously promote the deployment of
AI R&D in Europe, and attract a total investment of more than 20 billion euros in AI in
the next decade as planned. Beset by the severe problems of sub-replacement fertility
(Japanese: しょうしか) and aging population, Japan highlights the application of
AI in robotics, medical care, automobile transportation and other fields.
According to 2020 Global AI Innovation Index Report, 46 major representative
countries can be categorized into four echelons. To be specific, the United States holds
a safe lead and belongs to the first echelon, with a total score of 66.31. South Korea,
Canada, Germany, the United Kingdom, Singapore, Israel, Japan, France and other
countries (14) fall into the second echelon, scoring 30–60. Luxembourg, Belgium,
Austria, Czech Republic, Italy and other countries (24) belong to the third echelon,
scoring 15–30. Vietnam, Saudi Arabia, Türkiye, Argentina, Romania, Mexico and
Indonesia belong to the fourth echelon, scoring lower than 15.
2.4.2 Blockchain Plays a Decisive Role in the Strategic

Competition Among Great Powers
On the basis of distributed and peer-to-peer network as well as transparent mech-

anism, blockchain technology is hard to tamper with. It owns natural advantages
in delivering trust, realizing industrial digital transformation and building digital-
economy infrastructure and data productivity. In the distributed-business use case
Table 2.1 The expenditure and growth rate of global corporate blockchain solutions in 2017–20222
Years The expenditure on solutions /1 Billion U.S. Dollars Year-on-year growth rate (%)
2017 0.95 –
2018 1.5 57.89
2019 2.7 80.00
2020 4.3 59.26
2021 8.4 (Predictive value) 95.35
(Predictive value)
2022 11.7 (Predictive value) 39.29
(Predictive value)
that crosses border, commerce and industry, blockchain technology is gradually used,
with its market scale increasing accordingly. In October 2020, the White House of
the United States listed distributed ledger technology in national strategic key and
emerging technologies. The development of global blockchain industry embarks on
the “fast lane”, and the competition in this regard will be strikingly visible.
Globally, corporate expenditure on blockchain maintains rapid growth in scale.
The number of corporate registration hits a new high, and the number of patent
application remains a high level. In 2020, the innovation on blockchain technology
continued, and industrial integration accelerated. Central banks in various countries
enthusiastically advanced digital currency research programs, and c. 80% of global
central banks effectuated them. Various countries have successively introduced poli-
cies to foster the development of blockchain technology, and improved or clarified
supervision over encrypted assets, which have guaranteed the innovation and devel-
opment of blockchain industry. Table 2.1 shows the expenditure and growth rate of
global corporate blockchain solutions in 2017–2022.
As relevant IDC reports suggest, the United States, Western European countries
and China rank top three in the expenditure on global blockchain solutions in 2016–
2022. As the attention degree and adoption degree of relevant technologies jump, the
blockchain market grows rapidly. In 2020, the outbreak of the COVID-19 pandemic
had an impact on the investment scale of blockchain solutions. In 2021, as the expec-
tation effect of economic recovery expanded, the growth rate of the expenditure on
blockchain market rebounded strongly, and the market further verified the actual
effect of blockchain solutions.
2 Data Source: 2020–2021 Annual Report of Global Blockchain Industry: Panorama and Trends,
released by Huobi Research Institute.
2.5 The Construction of Application-Oriented Infrastructure Makes Haste 63
2.4.3 The Deployment of Global Quantum-Communication

Backbone Network Accelerates
Major developed countries have implemented or stepped up the implementation of

long-distance quantum-communication trunk-line projects. 24 EU member states
co-launch the quantum-communication infrastructure plan. The United Kingdom,
Germany, the Netherlands and other countries have successively issued develop-
ment plans for quantum fields like quantum computing and quantum communication.
Japan and South Korea started late in this field. However, with solid technological
accumulation, Japan and South Korea display strong development momentum in
quantum computing. Many countries in the world comprehensively carry out policy
support and project layout in relation to quantum-communication research and appli-
cation. Some countries or regions have announced new major quantum-information
science projects on the grounds of the existent R&D investment. In 2020, the United
States released A Strategic Vision for America’s Quantum Networks and A Strategic
Blueprint for America’s Quantum Internet, which proposed that “In the next five
years, the United States will demonstrate basic science and key technologies to realize
quantum networks, including quantum interconnection, quantum repeaters, quantum
memorizer, high-throughput subchannels, and intercontinental space-based entan-
glement distribution”. The European Union published Strategic Research Agenda,
proposing that “the three-year vision is to use QKD protocol and the network with
trusted relay nodes to achieve global security-key distribution, and the six-to-ten-year
vision is to use quantum repeaters to achieve quantum communication over 800 km
on-optical fiber”. Hungary, Portugal and Poland join the European quantum commu-
nications infrastructure (EuroQCI) and work with other seven EU member states to
jointly develop and deploy EuroQCI in the next decade. According to EuroQCI, the
European Union will integrate quantum technologies and systems into the existent
communication infrastructure, and apply quantum infrastructure to transmit and store
information in a super secure way to realize the full connection of EU communication
assets. Additionally, EuroQCI helps Europe to ensure that its key infrastructure and
encryption systems are safe from cyber threats, protect intelligent energy networks,
air traffic control, banks and health care facilities from hacker attacks, and enable
data centers to safely store and exchange information, so as to secure governmental
data privacy in a long term.
2.5 The Construction of Application-Oriented

Infrastructure Makes Haste
New-generation information technology represented by AI, 5G and cloud computing

has fully penetrated economy and society, which have established empowered use
cases and application-oriented infrastructure that provide services for digital trans-
formation, intelligent upgrading and system innovation, and facilitate the digital
process.
2.5.1 The Construction of IoT Infrastructure Quickens
Presently, the industrial chain of IoT has entered the connection-volume stage. The
incremental markets are mainly cellular and non-cellular Low-Power Wide-Area
Networks (LPWAN). The prosperity index of IoT industry continues to rise. As
predicted, the number of IoT connections will substantially increase in next five years.
By the end of 2020, the number of commercial cellular-IoT-network connections had
soared to 114 from 66 in the end of 2018, deployed by 59 operators in 52 countries
and regions. Particularly, there were 78 NB-IoT commercial networks and 36 eMTC
(LTE-M) commercial networks.
IoT plays an integral part in the 5G era. Predictably, the total number of global
IoT connections will rise from 12 billion in 2019 to 24.6 billion in 2025, with an
average CAGR of 13%. Accordingly, global IoT revenue will quadruple. IDC’s report
bespoke that in 2020, albeit the COVID-19 pandemic intensified the demands for
contactless IoT use cases to a certain extent, it impaired the implementation of IoT
projects in an offline way. Meanwhile, the pilot projects of some IoT use cases did
not form a mature business closed loop, with unsatisfactory development effects.
In 2020, global IoT expenditure reached 690.47 billion U.S. dollars, and Chinese
market took up 23.6%.
2.5.2 The Application of Industrial Internet Extends

and Deepens
The construction of the global industrial-Internet platform attains positive progress.

The platform presents an active trend of innovation and displays a powerful driving
force for the digital transformation of manufacturing industry. By means of platform
convergence, the ecological pattern featuring comprehensive integration and interac-
tive collaboration takes shape. Mainstream telecom operators represented by Voda-
fone, AT&T and China Telecom accelerate the layout of cellular IoT. The number
of IoT perception-terminal connections grows fast, and the core role of the platform
shifts from original Connection Management Platform (CMP) to Device Manage-
ment Platform (DMP) and Application Enabling Platform (AEP). The construction
of core infrastructure like network facility and Identification Analysis System speeds
up, and the market scale of industrial Internet platforms continues to expand.
Generally speaking, North America and Europe still lead the list in the market
share or scale (see Fig. 2.1). Yet, as the growth rate in various regions start to polarize,
Fig. 2.1 The market share of global industrial internet products
the regional market of global industrial Internet takes on a tripartite pattern. North
America, Europe and the Asia Pacific Region are dominant regions for the develop-
ment of industrial Internet. American corporations possess significant advantages.
General Electric (GE), Microsoft, Rockwell, Amazon and other corporations ener-
getically deploy industrial Internet, and start-ups vigorously promote cutting-edge
innovation, so as to solidify the leading industrial role of the United States.
Against the backdrop of manufacturing’s return to the United States, the growth
rate of industrial Internet market increases slightly. Under the guidance of manu-
facturers such as GE, Cisco and Intel, the United States further deepens the appli-
cation market of industrial Internet and leads the development of global industrial
Internet as ever. The United States stresses innovation-driven development, fore-
grounds the advantages of Internet, information communication and software, and
uses information technology to re-shape manufacturing industry in a top-down way.
It has successively promulgated “Manufacturing Recovery Act”, “Advanced Manu-
facturing Partnership Program” and other supporting policies, and formulated the
Strategy for American Leadership in Advanced Manufacturing that focused on the
development and transformation of new manufacturing technologies. In Future Plan
for Industrial Development, the United States lists advanced manufacturing, AI,
quantum information and 5G as the priorities of governmental support. National
Science Foundation (NSF) of the United States has included the R&D of Cyber
Physical System (CPS) in the NSF funding for 14 consecutive years. In corporate
practice, large corporations like General Electric and Cisco lead industrial devel-
opment, and Industrial Internet Consortium (IIC) of the United States continually
attracts a variety of industrial giants and top institutions to join.
European industrial giants like Siemens, Bosch, ABB and SAP actualize speedy
advancement in industrial-Internet development with their basic advantages in manu-
facturing. According to the data released by CCID (China Center for Information
Industry Development), the market scale of global industrial-Internet product would
exceed 1 trillion U.S. dollars in 2022 and maintain an average CAGR of 6% in
2020–2025, as predicted. Under the impact of the COVID-19 pandemic, Brexit and
Russian economy, the growth rate of European industrial-Internet market decreases
by degrees and hits the European business of traditional manufacturers like Siemens
and SAP, whose overall market scale follows after the United States and ranks
higher than the Asia–Pacific Region. IIC of the United States and German insti-
tutions engaged in “Industry 4.0” jointly release a white paper on the docking anal-
ysis of Industrial Internet Reference Architecture (IIRA) and Reference Architec-
tural Model Industrie 4.0 (RAMI 4.0). The white paper emphasizes that IIRA and
RAMI 4.0 resemble and complement each other in terms of ideas, methods and
models. Germany stages “Industry 4.0 Strategy”, underscores the optimization of
basic production processes like intelligent factory, intelligent production and intelli-
gent logistics, and transforms the manufacturing industry in a top-down way. It has
successively published Digital Strategy 2025 and German Industrial Strategy 2030,
which propose to accelerate the interconnection of machines and Internet (“Industry
4.0) as a revolutionary and innovative technology for digital development. In corpo-
rate practice, leading corporations like Siemens and SAP continue to improve the
layout of digital industry.
In Japan and South Korea, the scale of industrial Internet market remains rela-
tively stable. India and Southeast Asian countries become new forces for the growth of
industrial Internet market. In China, industrial Internet market embodies great poten-
tial and maintains rapid growth. Japan coins the idea of “Connected Industry”, in
which “Industrial Value Chain Initiative” aims to establish local connected-industry
supporting systems, highlight the interconnection among enterprises, and raise the
production efficiency of the whole industry. In order to promote “Connected Industry
Strategy”, on the one hand, Japan sorts out visual demonstration-use cases (e.g. manu-
facturing white papers, examples, online maps and intelligent-factory demonstration
projects); on the other hand, Japan sets up external supporting institutions for small
and medium-sized enterprises. For instance, Japan organizes “smart manufacturing
supporting groups” to assist small and medium-sized enterprises by dispatching
experts, popularizing easy-to-use tools, or providing technological, personnel and
tool support. MarketsandMarkets, the second largest market research and consulting
firm in the world, predicts that from 2020 to 2023, the CAGR of industrial Internet
market in the Asia–Pacific Region will be the highest. The infrastructure and indus-
trial development of emerging economies (e.g. China, India and Southeast Asia
countries) continue to facilitate the growth of industrial Internet market scale, with
the Asia–Pacific Region as an important center for manufacturing development in
the world.
2.5.3 The Deployment of Global Internet of Vehicles (IoV)

Accelerates
Over the past year, key technologies such as intelligent networked vehicle sensor
technology and vehicular computing technology have boosted the improvement of
vehicle intelligence, and 5G vehicular communication technology has accelerated
the process of vehicle networking. Globally, countries and regions that take the
lead in the development of IoV industry continue to support the development of
automatic-driving technology at the policy level, actively revise relevant laws to
adapt to industrial development, and quickly formulate standards in the fields of IoV
and automatic driving.
In the United States, enterprises play a major role in the development of IoV
industry, and governments create better development conditions at legal and policy
levels, in which market forces promote industrial and technological development. In
March 2020, the U.S. Department of Transportation (DOT) released ITS Strategic
Plan 2020–2025, which attached more attention to the R&D of automatic driving
and network security. On the one hand, the U.S. DOT provides government-oriented
communication channels for the development direction, resource integration and
regulatory model of automatic driving by means of policy; on the other hand, the
U.S. DOT takes “exemption” as a main tool to provide policy-related protection for
the exploration of automatic-driving road operation. Nuro, an American company,
has obtained “exemption” for up to 5,000 vehicles in a two-year testing stage. The
European Union continues to release strategic plans for networked automatic driving
and improve the roadmap of automatic-driving development. EU’s goal is to realize
open-data interaction between networked automatic driving and big-data trusted plat-
forms by 2022, and to improve next-generation V2X (Vehicle to X)-to-L4 level
automatic-driving capability by 2025. German automatic-driving vehicles can sense
the vehicles about to leave within 400 m and respond timely. Japanese government
directly participates in the promotion of key industries, supports the application of
new intelligent technologies for automobiles, and focuses on intelligent transporta-
tion, automatic driving and other fields. Japan’s Amendment to the Road Trans-
portation Vehicle Act came into effect in April 2020, in order to commercialize and
popularize automatic-driving technology.
China proposes to develop advanced vehicular sensors and chips in IoV tech-
nology, integrate advanced information communication technology, and build intelli-
gent perception ability to complex environment as well as intelligent decision-making
and automatic control functions, so as to meet the requirements for the development
of next-generation automobile and intelligent transportation that are safe, efficient
and energy-saving. In November 2020, Federal Communications Commission (FCC)
of the United States officially voted to allocate 5.9 GHz band (5.850–5.925 GHz)
to Wi-Fi and C-V2X, and announced to abandon Dedicated Short Range Commu-
nication (DSRC) and turn to C-V2X, which meant that C-V2X became the only
international standard for global IoV.
By July 2020, in the field of global IoV, the number of patent applications had
totaled 115,013, among which 98,821 in the same patent family were merged. With
regard to global patent applicants, Japanese and American enterprises remain the
leading position. China is the largest patent producer, and some Chinese corporations
(e.g. Huawei, ZTE and Baidu) perform prominently. In the technological flow of
global patent applications, China, the United States and Japan are major technological
originators and target markets in the field of intelligent networked vehicles. Foreign
countries deeply deploy patent market in China, whereas China shows a sharp contrast
in overseas market. Japanese market is relatively closed and mainly dominated by
domestic technologies.
Chapter 3
World Information Technology
Development
3.1 Outline
The world sees a stage when economic development largely relies on information
industry. Since 2020, new-generation information technology has been impelling
production modes to be more intelligentized, industrial forms to be more digital, and
industrial organizations to be more platform-based. This has enormously improved
production efficiency and resource-allocation efficiency in the entire society.
In 2020, the level of high-performance computing progressed steadily, and new
heterogeneous-architecture-based super-computing juggled both performance and
environmental protection. The level of chip process further improved, and global
market faced a shortage of chips. The changes of new operating-system products
were in the pipeline, and industrial software kept developing towards intelligence
and cloud-end. With mature technologies and multiple route forms, AI formed large
industrial scale. The application of cloud native technology continuously accelerated
the construction of new infrastructure, and quantum information technology and
application made a significant breakthrough.
New applications that derive from new-generation information technology will
further meet the common expectations of people and the needs of socioeconomic
development, and will better serve the development process of human civilization.
3.2 Basic Technologies
In 2020, global layout of supercomputing power in Japan and the United States
remained basically stable. In the TOP500 List, the single-machine computing power
of the United States and Japan ranked top three. The monopoly pattern of computing
chip proved relatively obvious. International leading corporations dominated chip
R&D. Global advanced chip process entered the 5 nm-level mass-production stage.

https://doi.org/10.1007/978-981-19-9323-7_3
70 3 World Information Technology Development
Chip-storage corporations like Samsung and SK Hynix accounted for c. 90% of the
total market share. IoT operating systems mushroomed, and many smart business use
cases of “5G + IoT” came true. Global industrial software presented the development
trend of platforms and cloud services, and Dassault, Siemens and other corporations
took the lead. The number of global open-source projects grew exponentially, and
active open-source projects centered on emerging technologies like AI and cloud
computing.
3.2.1 High-Performance Computing Moves Towards an Era

in Which Performance and Energy-Consumption Are
Taken into Account
Since 2020, high-performance computing in the world has developed steadily, and its
comprehensive performance has remained basically stable. The innovation in cutting-
edge fields has focused on heterogeneous systems to effectively balance performance
and energy-consumption.
1. Overall Computing Performance of Supercomputer Improve Steadily
In June 2021, the 57th TOP500 List was released (see Table 3.1 for top 10 on the
list). Japanese supercomputer “Fugaku” ranked the 1st in a row. American supercom-
puters ranked the 2nd and the 3rd. Chinese supercomputers “Sunway TaihuLight”
ranked the 4th and “Tianhe-2A” ranked the 7th. “Fugaku” was jointly developed by
RIKEN (Institute of Physical and Chemical Research) and the manufacturer Fujitsu.
It consists of around 400 clusters, with a computing performance of 442 PFlop/s. In
Mixed Precision HPC-AI Benchmark Test, its performance reached a record of 2.0
EFlop/s. Noticeably, in the 57th TOP500 List, overall-performance-growth curve of
all listed supercomputers tends to be flat.
2. Environmental Protection Becomes an Important Indicator for Supercomputer
Energy conservation and environmental protection is an indicator to measure the

performance of supercomputer. In June 2020, the Green500 List was published. The
environmental-protection level of supercomputers continuously improved, and green
computing that supported multi-architecture computing power and multi-business
use case effectively met the needs of the rapid development of new-generation infor-
mation industry. In the Green500 List, MN-3, from Japan’s Preferred Networks, took
the first place. The system relies on MN-Core chips, whose power efficiency reaches
29.70 GFlop/W, for accelerator optimized for matrix operation and Xeon Platinum
8260 M processor. Perlmutter supercomputer, which was newly put into use in 2020,
was the only new supercomputer that ranked top 10 in the Green500 List (the 6th),
with robust performance and high efficiency of 25.55 GFlop/W (Table 3.2).
3.2 Basic Technologies 71
Table 3.1 Top 10 supercomputers in the 57th TOP500 list (June 2021)
Ranking Supercomputers Cores Floating point Peak Power/kW
arithmetic performance
(TFlop/s) (TFlop/s)
1 Supercomputer Fugaku, 7,630,848 442,010.00 537, 212.00 29,899
A64FX 48C 2.2 GHz,
Tofu interconnect D,
Fujitsu
RIKEN Center for
Computational Science
Japan
2 Summit-IBM Power 2,414,592 1,48,600.00 200,794.90 10,096
System AC922, IBM
POWER9 22C 3.07 GHz,
NVIDIA Volta GV100,
Dual-rail Mellanox EDR
Infiniband, IBM
DOE/SC/Oak Ridge
National Laboratory
United States
3 Sierra-IBM Power System 1,572,480 94,640.00 125, 712.00 7438
AC922, IBM POWER9
22C 3.1 GHz, NVIDIA
Volta GV100, Dual-rail
Mellanox EDR Infiniband,
IBM / NVIDIA / Mellanox
DOE/NNSA/LLNL
United States
4 Sunway 10,649,600 93,014.60 125,435.90 15,371
TaihuLight-Sunway MPP,
Sunway SW26010 260C
1.45 GHz, Sunway,
NRCPC
National Supercomputing
Center in Wuxi
China
5 Perlmutter-HPE Cray 706,304 64,590.00 89,794.50 2528
EX235n, AMD EPYC
7763 64C 2.45 GHz,
NVIDIA A100 SXM4
40 GB, Slingshot-10, HPE
DOE/SC/LBNL/NERSC
United States
6 Selene-NVIDIA DGX 555,520 63,460.00 79,215.00 2646
A100, AMD EPYC 7742
64C 2.25 GHz, NVIDIA
A100, Mellanox HDR
Infiniband, NVIDIA
NVIDIA Corporation
United States
(continued)

Ranking Supercomputers Cores Floating point Peak Power/kW
arithmetic performance
(TFlop/s) (TFlop/s)
7 Tianhe-2A-TH-IVB-FEP 4,981,760 61,444.50 100,678.70 18,482
Cluster, Intel Xeon
E5-2692v2 12C 2.2 GHz,
TH Express-2,
Matrix-2000, NUDT
National Super Computer
Center in Guangzhou
China
8 JUWELS Booster 449,280 44, 120.00 70,980.00 1764
Module-Bull Sequana
XH2000, AMD EPYC
7402 24C 2.8 GHz,
NVIDIA A100, Mellanox
HDR InfiniBand/ParTec
ParaStation ClusterSuite,
Atos
Forschungszentrum
Juelich (FZJ)
Germany
9 HPC5-PowerEdge C4140, 669,760 35,450.00 51,720.80 2252
Xeon Gold 6252 24C
2.1 GHz, NVIDIA Tesla
V100, Mellanox HDR
Infiniband, Dell EMC
Eni S.p.A. Italy
10 Frontera-Dell C6420, 448,448 23,516.40 38,745.90 –
Xeon Platinum 8280 28C
2.7 GHz, Mellanox
InfiniBand HDR, Dell
EMC
Texas Advanced
Computing Center/Univ.
of Texas United States
3.2.2 Chip Manufacturing Process is Upgraded Iteratively

and the Production Capacity Needs to Be Improved
Presently, a new round of global scientific and technological revolution and industrial
transformation grow steadily, and the development benefit of chip industry further
intensifies. Technological innovation and product reform accelerate, and new-round
international industrial division and competitive pattern take shape quickly.
1. Mainstream Chip Products Continue to Be Upgraded Iteratively.
1) Computing Chips
In general, the monopoly pattern of computing chips becomes evident, and
international leading enterprises occupy a leading position in chip R&D.
Table 3.2 Top 10 in Green500 list

Ranking Ranking of Supercomputers Cores Performance Power/kW Power
performance (TFlop/s) efficiency
/(GFlop/W)
1 336 MN-3-MN-Core Server, 1664 1 822.40 61 29.7
Xeon Platinum 8260 M
24C 2.4 GHz, Preferred
Networks MN-Core,
MN-Core DirectConnect,
Preferred Networks
Preferred Networks
Japan
2 22 HiPerGator AI-NVIDIA 138, 17,200 383 29.521
DGX A100, AMD EPYC 880
7742 64C 2.25 GHz,
NVIDIA A100,
Infiniband HDR,
NVIDIA
University of Florida
United States
3 101 Wilkes-3-PowerEdge 44, 800 4,124.0 147 28.144
XE8545, AMD EPYC
7763 64C 2.45 GHz,
NVIDIA A100 80 GB,
Infiniband HDR200 dual
rail, Dell EMC
University of Cambridge
United Kingdom
4 37 MeluXina-Accelerator 99, 200 10, 520.0 390 26.957
Module-BullSequana
XH2000, AMD EPYC
7452 32C 2.35 GHz,
NVIDIA A100 40 GB,
Mellanox HDR
InfiniBand/ParTec
Atos
LuxProvide
Luxembourg
5 215 NVIDIA DGX 19,840 2356.0 90 26.195
SuperPOD- NVIDIA
DGX A100, AMD EPYC
7742 64C 2.25 GHz,
NVIDIA A100,
Mellanox HDR
Infiniband, NVIDIA
NVIDIA Corporation
United States
(continued)

Ranking Ranking of Supercomputers Cores Performance Power/kW Power
performance (TFlop/s) efficiency
/(GFlop/W)
6 5 Perlmutter-HPE Cray 706, 64, 590.0 2528 25.55
EX235n, AMD EPYC 304
7763 64C 2.45 GHz,
NVIDIA A100 SXM4
40 GB, Slingshot-10,
HPE
DOE/SC/LBNL/NERSC
United States
7 8 JUWELS Booster 449, 44, 120.0 1764 25.008
Module-Bull Sequana 280
XH2000, AMD EPYC
7402 24C 2.8 GHz,
HDR InfiniBand/ParTec
Atos
Forschungszentrum
Juelich (FZJ)
Germany
8 44 JURECA Data Centric 105, 9330.0 384 24.291
Module-BullSequana 840
XH2000, AMD EPYC
7742 64C 2.25 GHz,
NVIDIA A100 40 GB,
Mellanox HDR
InfiniBand/ParTec
Atos
Forschungszentrum
Juelich (FZJ)
Germany
9 190 Spartan2-Bull Sequana 23,040 2566.0 106 24.262
XH2000, AMD EPYC
7402 24C 2.8 GHz,
HDR Infiniband, Atos
Atos
France
10 94 Wisteria/BDEC-01 42,120 4, 425.00 184 24.058
(Aquarius) - PRIMERGY
GX2570 M6, Xeon
Platinum 8360Y 36C
2.4 GHz, NVIDIA A100
SXM4 40 GB, Infiniband
HDR, Fujitsu
Information Technology
Center, The University of
Tokyo
Japan
(1) In terms of CPU chips, in 2020, global CPU chip market achieved 63.658 billion
U.S. dollars, with a year-on-year increase of 10.6%. “ × 86” architecture-based
CPU played an absolutely monopolistic role in desktop computer and super-
computer and server market, and the CPU chips of Intel and AMD accounted
for more than 95% of the market share. In September 2020, Intel launched
the 11G Tiger Lake processor for laptops, which adopted Xe GPU and 10 nm
SuperFin process, and supported Thunderbolt 4, USB 4 and Wi-Fi 6, with a
great leap in performance and battery life compared with the previous Ice Lake
chip. In March 2021, AMD launched the 3G EPYC 7003 Series Processor,
code named “Milan”. The processor adopted tsmc’s 7Nm process. Equipped
with Zen 3 architecture that was released in October 2020, EPYC possessed a
great advantage in server market. In November 2020, Apple staged its first self-
developed chip M1 based on ARM architecture. M1 processor adopted tsmc’s
5 nm advanced process and signaled ARM architecture’s advance towards the
desktop field. In March 2021, NVIDIA introduced three processors based on
Arm IP, among which Grace CPU with 5 nm advanced process was the first
CPU released after it announced the acquisition of Arm.
(2) In terms of GPU chips, in 2020, global GPU chip market realized a scale of
10.309 billion U.S. dollars, up by 39.4% year on year. Global GPU chip market
was basically monopolized by NVIDIA (84.7%) and AMD (14.7%). Currently,
mainstream GPU products have applied 7 nm process and more advanced tech-
nologies. NVIDIA monopolizes the accelerated deep-learning algorithmic-chip
market, applies great computing power of GPU into such fields as AI, intel-
ligent driving and high-performance platforms, and builds rigorous software
and hardware ecosystems with the aid of the software-development framework
CUDA platform. In April 2021, NVIDIA launched A10/A30 Tensor Core GPU
based on Ampere architecture, which targeted data center market and fore-
grounded virtualized platforms. In mobile GPU chip market, there are mainly
three major manufacturers, i.e. Qualcomm, ARM and Imagination. Qualcomm
integrates GPU into Snapdragon chip, and ARM and Imagination gain profits
by authorizing GPU IP to chip-design enterprises.
(3) In terms of FPGA chips, in 2020, global FPGA/PLD chip market scale reached
5.575 billion U.S. dollars, with a year-on-year decrease of 6.0%. In 2020,
global FPGA chip market was monopolized by Xilinx (52.4%), Intel (32.2%),
Microchip (6.9%) and Lattice (5.6%). Technologically, Xilinx highlights self-
adaptive computing, and uses FGPA chips to improve the performance of
computing, network and storage devices. In April 2021, Xilinx launched Self-
Adaptive Module SOM Product of Kria Series, which was equipped with FPGA
chip to accelerate visual AI algorithm. Intel uses FPGA chips to remedy the
shortcomings of CPU chips. In February 2020, Intel made innovation on several
architectures of FPGA-Agilex Series. Compared with the older generation, the
performance of Stratix 10 improves by more than 45%.
(4) In terms of DSP chips, in 2020, global DSP chip market scale totaled 1.196
billion U.S. dollars, with a year-on-year decrease of 6.6%. Global DSP chip
market is dominated by Texas Instruments (36.2%), NXP (27.3%) and ADI

(23.6%).
2) Memory Chips
DRAM and NAND Flash are principal components of memory chip industry, taking
up 96% of the total memorizer-industry market. In 2020, five major memory chip
corporations, i.e. Samsung (37.1%), SK Hynix (20.1%), Micron (17.7%), Kioxia
(8.3%) and Western Digital Corporation (6.1%), accounted for c. 90% of the total
market share. In 2020, DRAM market scale realized 65.89 billion U.S. dollars, up
by 5.9% year on year. NAND Flash market scale reached 53.411 billion U.S. dollars,
up by 25.2% year on year.
In terms of DRAM, three original DRAM manufacturers, i.e. Samsung, SK Hynix
and Micron come to the stage of Extreme Ultra-Violet (EUV) and contest against
in the 4G 10 nm (1anm) process technology. Three original DRAM manufacturers
stay at the stage of 12–14 nm process, but their progresses in mass production differ.
Samsung introduced EUV equipment in 2020, and accelerated and expanded the
productions of 15 nm DRAM and 14 nm DRAM in 2021. SK Hynix completed
the construction of a new M16 plant in February 2021. It would introduce EUV
equipment for the first time, and start producing the 4G 10 nm (1anm) DRAM
products in the second half of 2021 as planned. In June 2021, Micron announced
that the mass production of 1anm-process-based LPDDR4x DRAM particles would
be officially started (EUV equipment not imported).
After entering the 3D stack, NAND Flash is upgraded quickly and its capacity is
enlarged substantially. With the process reaching 14 nm level, technological difficul-
ties multiply, and 3D NAND Flash technology represents a new development direc-
tion. Now, international mainstream enterprises generally enter more-than-100-layer
stack, and the competition among them intensifies. In November 2020, Micron started
the mass production of 176-layer-stack NAND Flash. SK Hynix took over the NAND
Flash business of Intel in October 2020, and successfully developed 176-layer-stack
4D NAND Flash in December 2020. 176-layer-stack 4D NAND Flash improved the
data-storage performance of the older-generation 128-layer-stack product by 35%,
and significantly strengthened the competitiveness of products. In February 2021,
Kioxia and Western Digital Corporation developed the 6G 162-layer-stack 3D NAND
Flash technology.
3) Communication Chips
The development of 5G plays a driving role in the development of integrated circuit
and semiconductor industry, and breeds new development opportunities for commu-
nication chips. Major semiconductor corporations have deployed in the 5G field,
and Qualcomm, Huawei, MediaTek and Samsung have launched 5G baseband and
SoC chips. In February 2021, Qualcomm unveiled Snapdragon X65 and X62, 4 nm-
process 5G-baseband chips. Snapdragon X65 is a modem and RF system that meets
3GPP Release 16 standards. Snapdragon X65 realizes a transmission rate 100 times
of that of the early 4G LTE, and supports all major 5G bands, including millimeter
wave and Sub-6 GHz band. In January 2020, MediaTek announced the 7 nm-process-
based Dimensity 800 Series 5G chip, which integrated 5G modem and targeted mid-
range computer market. In January 2021, MediaTek introduced Dimensity 1100 and
Dimensity 1200, two flagship chips that adopted tsmc’s 6 nm process.
2. The Innovation on Manufacturing Process and Supporting Industrial Chain Is
Continuously Made
1) Manufacturing Process
In 2020, as the capacity of Foundry continued to dwindle, a variety of chips were in
short supply for a long time, with higher prices and longer delivery dates. Consid-
ering the trend of technological development, the integration of manufacturing and
packaging presages a significant direction to break the bottleneck of advanced manu-
facturing process and forge advantages in differentiated technologies. In the market
orientation, 7 nm process and more advanced processes will become the biggest
growth point for global semiconductor OEM market. In the changes of industrial
patterns, the organizational model of integrated circuit industry becomes increasingly
open, which kindles fiercer market competition. In national scientific and technolog-
ical competition, the adjustment of semiconductor strategies in various countries
further highlights the importance of integrated circuits.
In 2020, global leading Foundry manufacturers successively reached the stage of
7 nm process, and tsmc successfully started the mass production of 5 nm process
(N5). In April 2020, tsmc disclosed the detailed information of 3 nm process (N3) for
the first time. N3 process meant a formal iteration after N5 process. Predictably, the
transistor density of N3 process increased by 1.7 times (the unit-level density of c. 290
MTr/mm2 ). Compared with N5 process, the performance of N3 process improved by
up to 50% and the power consumption reduced by up to 30%. In terms of tsmc’s N3
process, the risk-production plan was set in 2021, and the mass-production plan was
set in the second half of 2022. In June 2020, Gate-All-Around (GAA) of Samsung’s
3 nm process was officially taped out, and the mass-production plan would wait until
2022. Samsung’s data show that compared with its 7 nm process, the performance of
3 nm process improves by 35%, the power consumption of 3 nm process decreases
by 50%, and the area of 3 nm process reduces by 45%. Intel officially announced
the mass production of 10 nm-process products in September 2017, yet the yield
of 7 nm-process products failed to produce desirable effects. Therefore, the mass
production of 7 nm-process products would be postponed until 2023, as predicted.
In March 2021, Intel announced its IDM 2.0 Vision, which stated that Intel would
invest 20 billion U.S. dollars in building two wafer factories in the United States for
improved production capacity and expanded OEM business.
2) Package Tests
Presently, traditional package tests and advanced package tests in global semicon-
ductor industry run parallel. Large-scale production can be carried out by using major
packaging technologies like Flip-Chip, QFN and BGA. In the future, packaging tech-
nology will evolve towards two major sectors. The first one is Wafer-Level Packaging
(WLP) for chips, including Fan-In WLP and Fan-Out WLP, which can accommodate
more pins under a smaller packaging area. The second is System in Package (SiP)
for chips, which integrates multiple functional chips to compress the volume of the
modules and improve the overall functionality and flexibility of the chip system.
In recent years, Chiplet model, which has advantages of modularization and
customization, comes to rise. This speeds up the development of WLP technology
and cuts down the costs of design, manufacturing and packaging. Presently, Marvell,
AMD, Intel, tsmc and other semiconductor corporations have successively released
Chiplet products. Chiplet will create opportunities for the semiconductor industry,
lower the threshold of large-scale chip design, enhance IP value and reduce design
costs. ASE Group, Ankao Technology and Siliconware Precision Industries and other
companies master advanced packaging technologies like WLP, Fan-Out, Flip Chip
and 2.5D/3D and achieve mass production.
3) Equipment and Materials
The manufacturing process of chips evolves in line with Moore’s Law, and the techno-
logical innovation and development of equipment-dedicated integrated-circuit paral-
lelly progresses. The R&D of integrated circuit centers on the reduction of transistor
size and the expansion of density. Simultaneously, the development of key processes
like photomasking, etching, ion implantation and deposition plays a crucial role.
Global semiconductor-equipment technology calls for the coordinated and cooper-
ative development of multi-parties like wafer manufacturing enterprises, equipment
enterprises and R&D institutions. Now, with the joint efforts of wafer manufac-
turing enterprises, equipment enterprises and R&D institutions, 5 nm process has
achieved mass production and further advanced towards 3 nm, 1 nm and even sub-
nano processes. In the field of photomasking technology, ASML, a corporation from
the Netherlands, has monopolized high-end photoetching machine market. ASML
is the only corporation that can realize the mass production of EUV photoetching
machines. In 2020, the shipment of EUV photoetching machines was 31. In the
field of etching technology, in order to cooperate with wafer manufacturing enter-
prises to increase the equipment size vertically and reduce the key size horizontally
to reduce the costs, to improve the aspect ratio of etching has been the optimiza-
tion objective of the development of etching equipment. In 2021, Lam Research
announced Vantex, the latest dielectric-substance etching technology, which would
provide higher performance and greater scalability for current and next-generation
NAND and DRAM storage devices.
Spurred by the growth of the semiconductor manufacturing and packaging market
scale and the development of advanced processes, global semiconductor manufac-
turing materials and packaging materials market sprouted in 2020. Specifically, the
market scale of semiconductor manufacturing material reached 34.89 billion U.S.
dollars, and the market scale of semiconductor packaging materials reached 20.42
billion U.S. dollars. In 2020, among major semiconductor manufacturing materials,
silicon wafer was the first bulk material, with a market scale of 11.17 billion U.S.
dollars. The market scale of electronic gas achieved 4.54 billion U.S. dollars. The
photoresist market grew the fastest, with a growth rate of 19.5% and a scale of 2.12
billion U.S. dollars. In 2020, among major semiconductor packaging materials, pack-
aging substrate was the first bulk material, with a market scale of 7.69 billion U.S.
dollars. The market of bonding wire grew the fastest, with a growth rate of 6.3% and
a scale of 2.91 billion U.S. dollars.
3.2.3 Traditional Industrial Pattern of Software Technology

Steadily Changes
Presently, global software industry has shaped an international hierarchical indus-

trial division system, and the distribution of the upstream, midstream and downstream
chains of global software development industrial chain has become visible. Partic-
ularly, several giants dominate operating system and industrial software markets.
However, a series of new technologies, new products and new service models
gradually alter traditional industrial patterns.
1. Operating Systems Display a Cross-Platform and Cross-Filed Development
Trend
In recent years, the functional form of operating systems becomes more complex,
and “micro kernel + modular design” presents a prominent development direction.
The market shares of desktop-end operating system, mobile-end operating system
and IoT basically remain stable. Over the past year, major corporations launched
new products as well as cross-platform and cross-filed new technologies, which fired
new changes in operating systems.
1) The Market Pattern of Desktop-End Operating Systems Changes Stably
Microsoft’s desktop-end operating system accounts for 80.5% of the market share
as ever and maintains a dominant position in the market. In June 2021, Windows
11, Microsoft’s new-generation operating system, was officially launched, which
supported some Android apps on mobile terminals and gradually blurred the
boundary of desktop and mobile terminals. Google’s Chrome operating system was
well received among users as it could better support online education, occupying
10.08% of the market share and surpassing Apple (ranking the 2nd in the world).
Apple’s Mac operating system accounted for 7.5% of the market share and ranked
the 3rd. The market share of Linux operating systems ranked the 4th. Its latest edition
further improves the support of graphic computing and maintains a solid position in
corporate user market.
2) Two Mobile-End Operating System Giants Maintain a Monopolistic Position
Google’s Android system ranks the 1st, with a market share of 74%. iOS, a mobile
operating system developed by Apple, ranks the 2nd, with a market share of 25%.
Samsung’s Tizen operating system and India’s Kai operating system follow after
Android and iOS, yet share low market shares. In 2021, a number of new operating
systems were officially released, which introduced new force into the pattern of
mobile-end operating systems. For instance, Google published the Fuchsia oper-
ating system independent of Android. Huawei launched HarmonyOS, a micro-
kernel-based, full-scene-distributed operating system, which supported smartphones,
tablets, TVs, IoT and other platforms. Now Huawei has released HarmonyOS 2.0.
3) IoT Operating Systems Thrive in a Diverse Way
2020 saw the surge of IoT. The emergence of “5G + IoT” ushered in the realiza-
tion of numerous business use cases. Google’s Android Things integrates Android’s
development interface and Google’s basic service, and creates a complete ecosystem
that involves cloud platforms, app stores and development tools. Fuchsia, another
Google’s product, constantly promotes technological innovation on the integration
of cloud, edge and terminal. Microsoft’s Azure Sphere and Azure RTOS product
lines spotlight cloud connection and terminal real-time deployment respectively, and
build a complete interconnected product system. IT giants attempt to construct the
entire IoT industrial ecosystem via continuous user experience from the combination
of software and hardware.
2. Industrial Software Shows a Development Trend of Platform, Cloud Service and
Low-Code
As an important form of intelligent manufacturing, industrial software plays an
irreplaceable role in promoting the development of industrial intelligentialization.
In general, several industrial giants manipulate global industrial software market,
e.g. Dassault Systèmes (France), Siemens and SAP (Germany), and Autodesk and
Oracle (the United States). Over the past year, the industrial software field had the
following characteristics.
1) Industrial Giants Continuously Construct Integrated Platforms
As the complexity and integration of industrial products continuously improve, indus-
trial software develops from the single application of software to the comprehensive
application of multiple programs. In the development of industrial software, it is a
major trend to integrate information (knowledge, technology and software related to
multidisciplinary fields) into a comprehensive platform and realize overall coopera-
tion in the upstream and downstream industrial chains. On the one hand, traditional
giants in industrial software industry have launched comprehensive collaboration-
platform software that integrates their own product lines. On the other hand, they have
continuously acquired other companies to supplement their technological disadvan-
tages and expand their product lines, establishing a complete system that runs through
product design, industry, manufacturing and service. For example, in January 2020,
Dassault Systèmes acquired Distene S.A.S., a grid engine company. In November
2020, Autodesk purchased Spacemaker, a design software developer. In May 2021,
Siemens bought Supplyframe, an electronics design and procurement platform.
2) Cloud Service Reshapes the Form of Industrial Software Products
Traditional industrial software presents a shift-to-cloud trend. The deployment model
has shifted from enterprise per se to private cloud, public cloud and hybrid cloud.
The software architecture has shifted from tight coupling to loose coupling, and
has turned to component-based, platform-based and service-oriented development.
The operating platform has shifted from personal computers to supporting a variety
of mobile operating systems. Presently, cloud collaboration platforms represented
by Autodesk’s Fusion 360, Dassault’s 3D Experience, Siemens’ Realize LIVE
and PTC’s (Parametric Technology Corporation, the United States) LiveWorx have
become mainstream products. In contrast to relatively large mature products of these
industrial giants, cloud platforms are light-weight, easy to deploy, with modular and
scalable functions. The sales model turns from one-time license to annual subscrip-
tion. Besides, these enterprises open cloud platforms to students and small devel-
opment teams at low prices or even free, so as to continuously attract individual
developers into their ecosystems.
3) Low-Code Development Arouses More Attention
Low-code development means to automatically generate running codes through the
assembly and modeling drive of visual software functional components. Apps can
be quickly generated without coding or with a few codes. Low-code development
can lower the development threshold, accelerate iteration and improve development
efficiency to achieve low costs, high efficiency and flexible iteration. According to
Forrester’s report, in 2020, the market scale of low-code platforms would grow to
15.5 billion U.S. dollars, with 75% apps developed in low-code platforms. Low-code
becomes a main software-delivery platform and plays a key role in supporting the
construction of development ecosystems. For example, Siemens is using Mendix’s
low-code development capability to quickly create apps, collect asset data, and
exchange data on various bills of materials (BOMs), CAD graphics, etc., in order to
help users develop apps quickly on industrial Internet platforms.
3.2.4 The Ecology of New Open-Source Technologies

Constantly Improves
Open source denotes not only a way of software licensing, but also a model for
collaborative innovation. Since 2020, global open source has indicated a trend of
rapid development, and a series of software and hardware products in emerging tech-
nologies have taken open-source ecology as a major development path. Statistically,
in code bases of Internet and software infrastructure industries and IoT industries,
83.4% and 82.1% are open-source codes respectively.1 The technological innovation
and industrial model under the open-source model will mature.
1. Hot Topics on Open-Source Software Continue to Rise
1) Open-Source Software Develops Continuously and Rapidly
1 Data Source: 2020 Open Source Security and Risk Analysis Report published by Synopsys.
In recent years, the open-source production model has become a new-generation

development model of software. Open source features openness and collaboration,
promotes the rapid updating and iteration of software products and facilitates the
sustainable development of the software field. In general, the number of global open-
source projects continues to grow exponentially. According to the annual statistical
report for 2020 released by GitHub, a well-known open-source hosting platform,
by September 2020, the number of open-source-software developers on GitHub had
exceeded 56 million, with more than 60 million new open-source projects created and
more than 1.9 billion contributions added. As SourceClear’s survey report predicts,
the number of global open-source projects will exceed 300 million in 2026.
2) Open-Source Projects Center on the Field of Emerging Technologies
The construction of open-source ecology highlights open-source projects. Effec-
tive open-source projects mainly involve Internet platforms, AI, cloud computing,
and big data. Take Bossies (Best of Open Source Software awards) voted by an
American media business InfoWorld as an example. In 2020, 25 Bossies winners
in open-source software included tools for building better Web apps, more accurate
machine-learning models, clearer data-visualization tools, faster and more scalable
databases and analytical tools. Among them, top five open-source projects were
Hasura GraphQL Engine, a graphic database software; Prisma, database tool set
under the ORM (Object Relational Mapping) framework; Jekyll, a static blog-website
generating software; Gatsby, a front-end framework for website construction; and
Drupal, a CMF (Content Management Framework).
3) Technological Giants Continually Invest in Open Source, with Mature Business
Models
In technological giants like Microsoft, Google, Red Hat and Intel, a substan-
tial number of personnel engage in open-source development (see Table 3.3).
Core open-source projects that rely on their own operating systems, AI frame-
work and other basic software change the overall business pattern. Presently, with
open-source projects divided into community version and commercial version,
enterprises have gradually established three types of business model: open-source
service-subscription charging model, e.g. the subscription model initiated by
Red Hat; corporate-distribution charging model adopted by software like Eclipse
(a programming-environment software) and MySQL (a database); cloud-service
charging model mainly represented by Amazon.
2. Open-Source Hardware Will Break Traditional Chip Patterns as Expected
RISC-V sets off an upsurge in open-source hardware and open-chip design. With
the support of many large and medium-sized enterprises, scientific research institu-
tions and start-ups in the world, the ecology and community that focus on RISC-V
develop rapidly. Boosted by RISC-V Open Source Foundation, RISC-V instruction
3.3 Cutting-Edge Technologies 83
Table 3.3 Top 10 list of global corporation open source participation in 20202
Ranking Corporations Active developers/people The number of key participating
communities
1 Google 5709 11,361
2 Microsoft 5051 10,095
3 Red Hat 3127 5003
4 IBM 2382 5039
5 Intel 2233 5175
6 Amazon 1231 3145
7 Facebook 1203 3411
8 GitHub 987 2356
9 SAP 901 1790
10 Huawei 699 1683
set develops fast. In the field of control and the cases of IoT, more products and app
cases emerge. More open-source communities and enterprises carry out the adap-
tative and optimal programs in relation to RISC-V. Cutting-edge researches have
deepened and cultivated a batch of technological talents on RISC-V architecture for
open-source communities. RISC-V Open Source Foundation transferred its regis-
tered headquarters from State of Delaware (the United States) to Switzerland in
November 2019, and completed the legal-entity transition in March 2020. It was
renamed RISC-V International Association, with a neutral stance.
In recent years, many technological corporations (e.g. Western Digital Corpora-
tion, Qualcomm, NXP, Google, Microsemi, NVIDIA, Samsung, IBM and Amazon),
as well as research institutions and universities (e.g. UC Berkeley, Princeton Univer-
sity, Massachusetts Institute of Technology, Swiss Federal Institute of Technology
in Zurich, Nanyang Technological University of Singapore and Indian Institute of
Technology) have successively launched RISC-V programs. In April 2021, SiFive,
the largest RISC-V architecture manufacturer, successfully taped out the first RISC-
V-architecture SoC chip based on tsmc’s 5 nm process, which can be used in such
cases as AI, data center and high-performance computing.
3.3 Cutting-Edge Technologies
In 2020, in the field of AI, new unsupervised and self-supervised algorithms

constantly improved the level of automation and produced achievements in transna-
tional cooperation. In the field of cloud computing, cloud native development envi-
ronment was further upgraded, and new technologies and models were ceaselessly
2 Data Source: https://octoverse.github.com/.

launched, with rapid development in cloud computing. In the field of quantum infor-
mation technology, lots of new breakthroughs were made in quantum chemical
simulation, quantum machine learning and quantum combinatorial optimization.
3.3.1 AI Continues to Develop and Algorithm

and Computing Power Continue to Improve
AI functions as core driving force for a new round of scientific and technological
revolution and industrial transformation, and has a far-reaching impact on global
socioeconomic development. New algorithm, software and hardware continue to
innovate iteratively, commercial use cases multiply, and the popularity and industrial
scale of AI keep growing. Under the joint efforts of global AI industry, production
and research circles, achievements are incessantly made on AI R&D, and related
technologies are continuously upgraded to new levels.
1. AI Algorithms
1) Computer Vision
In computer-vision algorithm, technologies in relation to reducing manual labeling,
adjusting model and improving the automation of visual tasks develop quickly.
For example, there are unsupervised and self-supervised technology that constantly
evolves, intelligent data-preprocessing technology that enhances the availability of
non-standard structured data, and the technology that uses semantic-level under-
standing for visual underlying processing. At the beginning of 2020, Google and
Facebook initiated two algorithms respectively, i.e. SimCL and MoCo, which could
learn image-data representation in massive unlabeled data. SimCL and MoCo are
within the framework of contrastive learning, and core training signal is the “distin-
guishability” of pictures, which demonstrate that unsupervised learning models can
approach or even achieve the effect of supervised models. In May 2020, Facebook
launched the visual version of Transformer, Detection Transformer (DETR), which
successfully integrated Transformer to actualize performance balance and simplify
the architecture. In November 2020, researchers from the Max Planck Institute for
Intelligent Systems and the University of Tübingen proposed the method of Repre-
senting Scenes as Compositional Generative Neural Feature Fields (GIRAFFE),
which automatically separated one or more targets from images via three-dimensional
representation and semantic segmentation of image content. The joint research team
of the California Institute of Technology and the Northwestern University of the
United States suggested a method based on multi-task self-supervised learning.
Targeting the problems of expert’s labeling on massive data, the structured knowl-
edge from experts on various fields is designed and encoded with the process of task
programming to reduce the workload of data labeling in the early stage. In March
2021, the University of Central Florida of the United States advanced temporal-
action orienting method based on Multi-Label Action Dependency (MLAD), which
improved the accuracy of human actions in oriented videos by understanding the
logical relationship between action sequences.
2) Natural Language Processing
In natural language algorithms, a series of new methods, including upgrading evalua-
tion systems and interpretable models, are successively proposed to improve natural
language processing capacity with pre-training models. Microsoft and the University
of Washington unmask that the performance of the model is commonly overestimated
in a traditional verifying way. Learning from the principle of “Black Box Testing”,
Microsoft and the University of Washington suggest a method called “CheckList” to
re-measure natural language processing, which can hopefully address the problem of
high performance indicator yet unsatisfactory actual effects in the past. The research
teams of the University of Illinois, Columbia University and the U.S. Army Research
Institute launch GAIA, the first public open-source multimedia knowledge-extraction
system, which takes a great deal of unstructured and heterogeneous multimedia data
streams from different languages as input, creates a coherent and structured knowl-
edge base, indexes entities, relationships and events, follows rich and fine-grained
ontologies, searches complex graphics, and retrieves multimedia evidences like texts,
images and videos. GAIA was rated as the best extraction system in 2019 Interna-
tional Knowledge Base Construction Competition (NIST TAC SM-KBP). With the
aid of large-scale parameter quantities and data sets, the superposition performance
of simple architecture probably surpasses that of complex algorithms. In January
2021, Google launched Switch Transformer, a pre-training model that contained 1.6
trillion parameters, which broke the record of 175 billion parameters created by
GPT-3 training model. Switch Transformer used the technology of Sparsely Acti-
vated. Given the same computing resources, Switch Transformer proved faster than
the training model with smaller parameters previously launched by Google.
3) Algorithms in Other Fields
(1) The fair-unbiased-sequencing learning model hedges against the Matthew Effect
in search sequencing. In July 2020, the research team of Cornell University of
the United States published a paper on Fair Co, a fair and unbiased sequencing
learning model, and obtained the Best Paper Award at “The 43rd Interna-
tional ACM SIGIR Conference on Research and Development in Information
Retrieval”. The paper studied and analyzed the common Matthew Effect in
the current sequencing model, e.g. orientation deviation, sequencing fairness
and object exposure. On the basis of counterfactual-learning technology, the
paper suggested an correlation-degree unbiased estimation method with fairness
constraints to improve the sequencing performance.
(2) AlphaFold2, an AI system of DeepMind, solves the problem of protein-structure
prediction. In November 2020, AlphaFold2 from DeepMind won the champi-
onship in “The 14th International Protein Structure Prediction Competition”
(CASP), with the protein-structure-prediction task basically close to the prac-

tical level for the first time. The accuracy of AlphaFold2 stood comparison
with the 3D structure of protein analyzed by experimental technologies such as
CryoEM, Nuclear Magnetic Resonance or X-ray crystallography. In July 2021,
DeepMind published the latest research findings in Nature, and its AI system
AlphaFold2 could predict 98.5% of human protein structure.
(3) Machine Learning Operations (MLOps) comes to rise. MLOps is a new idea
in the field of data science and DevOps in machine learning. MLOps provides
services for data scientists and ML engineers, prompts their collaborative work
and raises work efficiency. It owns a complete set of behavioral strategies to
solve various problems in the operation cycle of machine learning and AI. In
Top 20 Projects on Github that grow fastest, there are five MLOps tools.
2. AI Chips
Presently, the algorithm and application of AI in various fields stay in the stage
of rapid development and iteration. As the underlying foundation that supports AI
industry, AI chips have great development prospects. Now, AI chips as a priority
developed and applied in AI industry can be mainly categorized into three types.
To be specific, there are acceleration-based chips for the training and reasoning
of machine learning and deep learning (basically deep neural network algorithm),
brain-like bionic chips whose design is inspired by biological brain, and AI chips for
general use that can efficiently calculate all kinds of AI algorithms.
Currently, NVIDIA’s GPU chip enjoys a dominant position in the market. RTX
3080TI, NVIDIA’s new-generation general graphics chip, owns 10,240 CUDA
cores, with its performance nip and tuck over Tesla V100, older-generation AI-
dedicated graphics chip. Tesla A100, the latest AI-dedicated graphics chip, adopts
7 nm process and 3D-stack technology, whose performance proves 20 times higher
than Tesla V100. DGX A100 Supercomputer, an AI computing platform released
synchronously, has a computing power of 5PFlop/s /, supported by eight Tesla A100
GPUs.
In recent years, AMD has sustainably invested in the research of AI chips. In
March 2021, AMD released the 3G EPYC processor “Milan”, which adopted the
latest Zen 3 architecture and 7 nm process. With a maximum of 64 cores and 128
threads, “Milan” achieves an intergenerational IPC upgrading by 19%. In June 2021,
AMD announced VersalTM AI Edge Series, which aimed to assist from-edge-to-end
AI innovation. The architectural innovation results in higher unit-power-consumption
performance and lower delay than GPU chips, strengthening the functions of edge
devices.
In May 2021, Google released TPU v4, the latest-generation AI chip, which
improved the performance by 2.7 times averagely, over the older-generation TPU v3.
Basically connected to Pod, IPU v4 plays its role. There are 4096 TPU v4 single chips
in each TPU v4 Pod. Owing to its unique interconnecting technology, TPU v4 can
transform hundreds of independent processors into a system, and its interconnection
bandwidth reaches 10 times that of other network technologies in scale. Each TPU
v4 Pod can satisfy the computing power of 1 EFlop/s and the floating point arithmetic
of 1018 /s, twice that of “Fugaku”, the fastest supercomputer in the world.
3. The Capacity of Deep-Learning-Framework Software Continues to Improve
As basic software widely used in AI industry, deep-learning-framework software
can immensely reduce the threshold for the deployment of AI R&D and improve
the R&D efficiency. After several-year market competition, in global deep-learning-
framework software, an industrial pattern takes shape, in which Google’s TensorFlow
and Facebook’s Pytorch become the mainstream trend.
TensorFlow enjoys great popularity in industrial circle, and applies Data Flow
Graphs in numerical calculation. TensorFlow 2.x integrates a series of new technolo-
gies and algorithms in the version updating to continuously improve and enhance the
performance of TensorFlow Core, and retain the consistency of evaluation metrics
while ensuring smooth performance evaluation. New performance-evaluation tool
Performance Profiler optimizes overall compatibility of TensorFlow ecosystem,
including TensorFlow Extended key bases.
Pytorch is well received in academia, owing to its convenient functions like
dynamic graphic mechanism and automatic derivation. In the 2021 updated version,
Pytorch adds compatible low-level mathematical-computing tools, performance-
analysis tools, Distributed Data Parallel (DDP) and RPC (Remote Procedure Call)-
based distributed training functions, which improves the ability to deploy the deep-
learning model of the mobile terminal again. Pytorch supports the use of the
mobile terminal via the build-in visual tool TorchVision base, combines the updated
mobile-terminal interpreter, and enormously diminishes resource consumption of
mobile-terminal deployment.
3.3.2 Cloud Native Technology Gradually Matures
Global cloud computing market maintains steady growth. In 2020, global IaaS market
scale achieved 64.286 billion U.S. dollars, with a year-on-year increase of 40.7%.
Top manufacturers lead the list in the market share, and Amazon, Microsoft and
Alibaba Cloud rank top three in the world. Cloud native technology continually
improves cloud efficiency and rapidly develops. Development languages like Rust
and Web assembly technology are gradually popularized and applied. New technolo-
gies in cloud space like Gitpod and GitOps Engine will have a deep impact on the
development of cloud native technology in the next decade.
1. Cloud Development Environment Is Further Upgraded
The continuous upgrading of cloud Workspaces, development languages Rust and

Web assembly technology helps small and medium-sized teams forge software-
delivery capabilities that can match large corporations. In 2020, Google released the
official version of Gitpod Project as an online Integrated Development Environment
(IDE), which truly realized the cloud Workspaces. Starting project development from
any page of GitHub, a code hosting platform, Gitpod can reduce the development-
preparation time to minutes. Development language Rust is also welcomed among
developers. Rust not only runs at the same speed of C/C++ , but also owns the
components necessary for writing secure applications. In 2020, Microsoft officially
launched Rust library for Windows, which enabled users to write Windows-platform
applications and drivers with Rust. Web assembly technology is a technology that
supports various language codes to run in the Web at a speed close to the execu-
tion speed of native programs. In 2020, Web assembly technology further expanded
the supporting language and introduced Wamser virtual machine, which realized
“plug-in” development.
2. The Hybrid Cloud Unified Control Plane Technology Gradually Matures
Customized unified control plane technology supports cross-cloud deployment.
OAM (Open Application Model)-based standardized template spurs the changes
in the expansion and management of distributed applications. Cloud native projects
like Crossplane and KubeVela extend “platform engine” and create unified control
interface for developers, so as to realize cross-cloud workload management.
3. Monomer Architecture and Microservices Are Considered in a Balanced Way
In recent years, microservice-built cloud native apps come to rise, which break up a
larger app into smaller, interconnected components, allowing independent teams
to deal with different parts of the app without interfering with each other. Yet,
microservices are confronted with a series of problems or “a Gordian knot”, such as
cross-component debugging, project decoupling and segmentation and the inherent
complexity of distribution. In 2020, more compromises were adopted in cloud-native
practice, so that microservices could balance with other factors in corporate software
design. For example, Istio service grid used the method of monomer-migrating, with
more services integrated into a single daemon.
4. New Cloud Native Operations Model Is Continuously Explored
For a long time, cloud computing hits a bottleneck in the continuous deployment and
development of complex apps. In recent years, some researchers began to explore
“GitOps” model and programmable Linux-kernel technology. In “GitOps” model,
development and operation are integrated. Git-version-control software pulls and
automatically manages requirements from infrastructure, builds and pushes work-
flows, and accelerates app deployment. In June 2020, GitOps Engine was offi-
cially released as a project to practice the above idea. Through version control,
GitOps Engine could realize automatic app deployment and life cycle management.
Other tools and software, such as Prometheus, a cloud-resource monitoring tool,
also support GitOps model and provide interfaces to realize automation. Besides,
programmable Linux-kernel technology, i.e. Extended Berkeley Packet Filter (eBPF)

technology, starts to be widely used. eBPF is a bytecode virtual machine built into the
kernel, with advanced functions such as packet filtering, call-stack tracking, time-
consuming statistics and hotspot analysis. eBPF functions as a microkernel, which
provides a faster and safer way to use Linux kernel. In this way, eBPF enables apps
to obtain system-level monitoring and debugging functions, speeds up the decision-
making process of network routing, and allows the kernel to inline to complete the
work assigned to the module so far.
3.3.3 Quantum Information Technology Is Deeply Explored
Quantum information technology advances human abilities to understand and trans-

form the world to an unprecedented level. In recent years, as technological achieve-
ments in quantum computing, quantum communication and quantum measure-
ment are continuously made, the scramble for new technological breakthroughs and
scientific and technological leading role are increasingly fierce.
1. Major Representative Countries and Regions Actively Deploy in the Field of
Quantum Information Technology
1) The United States
The United States has completed the strategic deployment in the field of quantum
information technology. In regard to theoretical research, the United States focuses
on promoting the disciplinary construction of quantum information science. With
respect to application technology, the United States emphasizes the development
of quantum-computing hardware equipment driven by the development of high-
performance computing systems, and achieves several staged results. In 2020, the
White House Office of Science and Technology Policy (OSTP), National Science
Foundation (NSF) of the United States and the U.S. Department of Energy (DOE)
prepared to spend 625 million U.S. dollars to establish five quantum information
science (QIS) centers. Private sectors and academic institutions would provide an
additional 340 million U.S. dollars for the construction of these centers. In 2021, U.S.
President Biden stated that the United States would invest 180 billion U.S. dollars in
“future R&D and industry”, which involved advanced computing (including quantum
computer) and the design and manufacture of semiconductors.
2) The European Union
Regarding development goal, the European Union targets four fields, i.e. quantum
communication, quantum simulator, quantum sensor and quantum computer, in the
development of quantum information technology. The European Union ensures the
development of quantum information technology in Europe by building favorable
ecosystems for technological and commercial innovation, promoting the collabora-

tive cooperation between academia and industry, realizing the efficient transfer of
quantum information technology from laboratory to industry, and cultivating new-
generation experts and professionals on quantum information technology. In March
2020, the EU’s “Quantum Information Technology Flagship” released Strategic
Research Agenda (SRA), which clarified the development goals of “Quantum Infor-
mation Technology Flagship”. In January 2021, France announced the launch of
“National Strategy for Quantum Information Technology”, planning to invest 1.8
billion euros in the quantum field within five years. In March 2021, the European
Commission published 2030 Digital Compass: the European Way for the Digital
Decade, proposing that by 2025, Europe would have the first computer with quantum
acceleration function.
3) India
India is a latecomer in the field of quantum technology. Taking the lead in the
international IT industry, India will be an important force in the field of quantum
technology in the future. Presently, India takes the development path of collabo-
rating with other countries and relying on external forces. It has successively estab-
lished cooperative relations with IBM, Microsoft, Honeywell Quantum Solutions,
the Centre for Quantum Technologies (CQT) of the National University of Singapore
and Lomonosov Moscow State University, as well as Russoft, a software develop-
ment outsourcing company. India fosters the development of quantum information by
sharing research findings in quantum science. In the 2020 budget, Indian government
announced National Mission for Quantum Technology and Application (NM-QTA),
which would last for five years, with a total budget expenditure of Rs. 80 billion.
2. The Application and Cloud Deployment of Quantum Computing Advance Side
by Side
“Classical + hybrid” quantum algorithm under NISQ (Noisy Intermediate-Scale
Quantum) condition is one of the current research hotspots. In particular, the
algorithms represented by Variational Quantum Eigensolver (VQE) and Quantum
Approximate Optimization Algorithm (QAOA) are expected to solve specific
computing problems like chemical simulation and combinatorial optimization
under NISQ computing architecture. In August 2020, Google achieved the process
simulation of isomerization reaction, and Huawei released HiQFermion quantum-
chemistry-simulation application software, which used VQE algorithm to predict
chemical-molecular energy. In July 2021, Google’s quantum processor “Sycamore”
realized an exponential growth in logic-error suppression. By running a one-
dimensional-chain repeat code composed of 21 qubits and a two-dimensional surface
code composed of seven qubits, “Sycamore” achieved an exponential growth of up
to 100 times in the suppression of logic errors. This confirms that quantum error-
correction can successfully control the error rate within a certain range, and that
quantum error-correction paves the way for the development of scalable fault-tolerant
quantum computers in the future.
Quantum machine learning in general quantum algorithms is also popular in the

current research. Google introduces Tensor Flow Quantum and quantum convolu-
tion neural network solutions, which provide online training and model-evaluation
functions and accelerate the exploration of quantum machine learning hopefully.
Quantum heuristic classical algorithm stands for a new research direction as observed
recently. It can accelerate the processing of specific problems like recommenda-
tion system by applying the design idea, data structure and computing logic of
quantum computing into classical computers, and probably becomes a new direction
in practical exploration.
The architecture of quantum cloud computing technology is taking shape, and the
hierarchical design basically becomes clear. Particularly, the hardware base consti-
tutes the core part of quantum computing cloud platforms, which lumps traditional
computing facilities with quantum processor, quantum storage and quantum measure-
ment and control technology, and forms great computing power. The back-end form
of quantum cloud computing features diverse technologies. There are mainly three
models, i.e. real quantum computing, quantum computing simulator and classical-
hybrid quantum computing. Technological corporations like IBM, Google, Microsoft
and Amazon all deploy quantum cloud computing to seize the initiative for future
development. Start-ups vie with each other. To cultivate user habits and ecolog-
ical status, the competition among them intensifies and propels the development of
quantum cloud computing industry into a “fast lane”. In August 2020, Amazon offi-
cially launched Amazon Braket quantum computing service. In June 2021, IBM
integrated all its open quantum computing systems into Strangeworks quantum
computing ecosystem. Xanadu, a start-up that introduced the first optical quantum
computer in the industry in 2019, started its quantum cloud platform in September
2020, and received 100 million U.S. dollars in financing in May 2021.
3. Multiple Technological Paths in the Field of Quantum Communication Progress
Simultaneously
In the technological path of Discrete Variable Quantum Key Distribution (DV-QKD),
the innovative TF-QKD (Twin-Field Quantum Key Distribution) protocol based on
single-photon interferometry at intermediate nodes can eliminate the security vulner-
abilities of measurement nodes and further improve the transmission capacity of QKD
system, which becomes an important direction of QKD-technology upgrading and
equipment development in the future. In 2020, on the basis of wavelength selective
switch and optical switch matrix, the University of Bristol of the United Kingdom
completed the experimental scheme of QKD system co-modulated by wavelength
level and port level and multi-dimensional networking modulated by optical network,
which provided a new idea for the network-level integrated deployment of QKD.
In the technological path of Continuous Variable Quantum Key Distribution
(CV-QKD), CV-QKD system possesses potential advantages in cost and integration
degree. CV-QKD-system hardware adopts traditional coherent optical communica-
tion devices, which can easily realize optical integration and effectively improve
the integration degree and cost performance of CV-QKD system. In 2020, the joint
research team of Beijing University of Posts and Telecommunications and Beijing
Normal University realized ultra-low loss optical fiber transmission with a distance
of 202.81 km and a bit rate of 6.214 bit/s in a laboratory environment, hitting a new
record for long-distance transmission of CV-QKD system. CV-QKD local oscillator
scheme becomes the trend of practical research, yet raises higher requirements for
laser linewidth and frequency locking stability. In June 2020, the Institute of Photonic
Sciences (ICFO) of Spain proposed a plug-and-play CV-QKD system scheme based
on single laser, which achieved a bit rate of 0.88 Mbit/s over a transmission distance
of 13 km. National Institute of Information and Communications Technology (NICT,
Japan) completed the CV-QKD system experiment of 194-wave channel wavelength
division multiplexing by using the partial division multiplexing of Gaussian modu-
lation signal and pilot signal at the transmitter and conducting digital-domain DSP
phase compensation for polarization locally at the receiver. The overall bit rate of
CV-QKD system at a distance of 25 km can reach 172.6 Mbit/s.
4. The Theoretical Framework, R&D and Application of Quantum Measurement
Gradually Mature
Presently, the theoretical framework of distributed quantum sensing based on the
entanglement of Discrete Variable (DV) and Continuous Variable (CV) has been
proposed. CVQSN uses entangled compressed optical signal as the measurement
unit, which is generally suitable for amplitude, phase detection or quantum imaging.
In 2020, the University of Arizona of the United States used CV-QSN for compressed
vacuum phase measurement, with a measurement variance lower than SQL by 3.2 dB.
Hopefully, CV-QSN will be explored and applied in the fields of ultra-sensitive posi-
tioning, navigation and timing in the future. Muquans (France) develops a wide range
of product lines in the fields of quantum inertial sensing, high-performance time and
frequency application and advanced laser solutions. Its major products include abso-
lute quantum gravimeter, cold atom frequency benchmark and so on. Muquans started
to develop quantum computing processors in 2020. M Squared Lasers (the United
Kingdom) develops inertial sensors and quantum timing devices for gravity, accel-
eration and rotation. Its major products include quantum accelerometers, quantum
gravimeters and optical lattice clocks. M Squared Lasers also partakes in the R&D
of quantum computers for neutral atom and ion.
5. The Characteristic Application of Quantum Is Actively Explored
Typical uses cases and fields in the exploration and application of quantum computing
revolve around quantum chemical simulation, quantum machine learning and
quantum combinatorial optimization. In September 2020, scientists from the Free
University of Berlin (Germany) proposed a new method of deep learning wave
function simulation, which could obtain the nearly-accurate solution of the elec-
tron Schrödinger Equation. The research embodies not only the application of deep
learning in solving a specific scientific problem, but also the broad prospects of deep
learning widely used in scientific research in various fields like biology, chemistry,
materials and medicine. Quantum simulation can improve the discovery rate of drugs
and save the R&D time, and better molecular design can improve the approval rate
of drugs. In August 2020, Google’s quantum computer simulated the largest-scale
3.4 New Technologies and New Applications 93
chemical reaction so far. The quantum processor simulated the isomerization reaction
of a diazene molecule composed of two nitrogen atoms and two hydrogen atoms,
which accorded with the simulation results on the classical computer and verified
the correctness of the experiment.
3.4 New Technologies and New Applications
Since 2020, the application of new-generation information technology has played a

vital role in the prevention and control of the COVID-19 pandemic. Over the past year,
multiple fields like new drug R&D, automatic driving and digital twin have made
further progress in the application of new technologies and continuously improved
the quality of people’s life.
3.4.1 The R&D of New Drugs Speeds Up with the Help of AI
The R&D of new drugs calls for a long cycle. The use of AI can immensely shorten
the time of screening candidate drug molecules and save R&D costs. Now, glob-
ally there are two major AI-aided drug R&D corporate alliances, i.e. MELLODDY
and MLDPS. MELLODDY is mainly led by Bayer, GlaxoSmithKline and other
pharmaceutical corporations, in conjunction with NVIDIA and other technological
corporations. MELLODDY drills AI models based on the data of many pharma-
ceutical corporations, via cloud-based NVIDIA GPU and distributed AI technology
of federated learning. MLDPS mainly consists of 13 pharmaceutical corporations
led by MIT. In March 2020, it jointly launched Computer Aided Synthesis Planning
(CASP) based on machine learning. Presently, the work of AI-aided new-drug devel-
opment stays in the verification stage. It will take some time for AI technology to
drive and connect the whole drug R&D process to realize real universal AI.
In September 2020, Panomics, an AI new drug R&D platform of Insilico Medicine
(the United States), was staged. Panomics can be used to accelerate the drug-target
discovery and drug R&D process, shortening the time of new drug R&D to 18 months.
Compared with existent AI drug R&D platforms, biological researchers and clini-
cians can analyze and interpret omics data via Panomics without having a knowledge
of computational biology or bioinformatics, which enormously lowers the threshold
of the use of AI in the pharmaceutical process. Merck KGaA, a German pharmaceu-
tical corporation, reached a cooperation with Insilico Medicine in November 2020.
Chemistry42™, a product with new molecular design, would be used to generate
chemistry AI platforms that would be integrated into High-Performance Computing
(HPC) infrastructure of Merck KGaA to provide customized services. In March 2020,
Owkin, an American corporation, launched COVID-19 Conversational AI (COAI),
which enabled users to apply AI in the medical field via the deep-learning model
of MesoNet, including drug-development optimization, survival prediction, target
discovery, clinical trial and drug-market analysis. In May 2020, Owkin obtained a
fund of 25 million U.S. dollars.
3.4.2 L3 Scene of Automated Driving Is Progressively Piloted
Today, automated driving technology means an important orientation for the innova-
tion and development of automobile industry. Major representative countries ener-
getically promote the development of such a cutting-edge technology, and gradually
improve relevant policy support and strategic plans. In January 2020, the United
States issued Automated Vehicles Guidance 4.0 (AV 4.0), which aimed to coordinate
and simplify regulation, accelerate corporate innovation, and ensure the leading posi-
tion of the United States in this regard. In May 2020, Japan published Report and
Policy on Efforts to Realize Automatic Driving Version 4.0 and raised the require-
ments for commercial propulsion technology and technological testing and verifi-
cation. In October 2020, the United Kingdom released UK Connected and Auto-
mated Mobility Roadmap to 2030, which clearly proposed the automated mobility
roadmap in the next decade (to 2030). The French Strategy for the Development
of Automated Road Mobility 2020–2022 was announced in February 2021, which
introduced EVRA, a heavily-subsidized national experimentation program. In May
2021, Germany passed The Framework Act on Automated Vehicles, which proposed
to allow L4 automated vehicles to go on the road by 2022.
In technological classification, automated driving can be divided into perception-
layer technology that comprises radar, inertial sensors and cameras, planning-layer
technology that comprises high-precision maps, computing chips and intelligent
algorithm technology (including SLAM and machine learning), and execution-layer
technology that comprises Electronic Control Units (ECUs) and actuators. Currently,
a variety of technological paths have taken shape. According to The Ranking of
Automatic Driving Competitiveness released by Navigant Research, Waymo and
Cruise (General Motors) keep ahead in the world in this field. In March 2021, Waymo
introduced its fifth-generation Waymo Driving System. Equipped with radar imaging
system, it can find traffic signs 500 m away, and has completed 20 million miles (1
mile approximates 1.6 km) of automatic driving mileage and more than 10 billion
miles of simulation mileage. In January 2020, GM’s Cruise debuted “Origin”, a
vehicle with integrated automatic driving technology. “Origin” does not feature any
manual controls such as pedals or a steering wheel. It mainly relies on a variety of
hybrid sensors and AI in decision-processing, equipped with a redundant system that
can perform safe parking for backup. Additionally, Tesla opened and tested a Full
Self-Drive (FSD) system in October 2020. The sensor-layer contained eight cameras.
The “prior experience” of deep-learning network replaced some functions of map
and radar, with the advantage of being easily popularized.
Over the past year, in global automatic driving technology, L3 auxiliary driving
pilot was gradually carried out; yet, automatic driving technology needs to contin-
uously iterate and develop to fully realize unmanned automatic driving. In 2020,
3.4 New Technologies and New Applications 95
Table 3.4 International organizations for standardization that promote digital twin standardization3
Time Organizations Released documents and related work
January 2020 Digital Twin Consortium (The Since its inception, DTC has been
United States) focusing on creating cross-industry
digital twin reference architecture and
definition
February 2020 Industrial Internet Consortium Publishing White Paper on the
(The United States) Application of Digital Twin in
Commerce and Industry, co-publishing
White Paper on the Digital Twin and
Asset Administration Shell Concepts
and Application in the Industrial
Internet and Industrie 4.0 with German
Platform Industrie 4.0
March 2020 International Telecommunication Approving Standards for Security
Union ITU-TSG17 Mechanism for Digital Twin System in
Smart City in the field of smart city
September 2020 Industrial Digital Twin Since its inception, IDTA has been
Association (Germany) developing digital twin open-source
solutions
September 2020 IEEE Approving IEEE2806.1 Standard for
Connectivity Requirements of Digital
Representations for Physical Objects in
Factory Environments
November 2020 ISO/IEC JTC1 AWI5618 Digital Twin: Concept
System and Terminology System and
AWI5719 Digital Twin: Application
Cases
Daimler AG released L3 Mercedes-Benz S-Class W223, and Tesla launched L3

mass-production Model Y. In 2021, Honda launched L3 model “Legend”, BMW
launched L3 mass-production model “iNEXT”, and Audi launched L3 model A8.
3.4.3 The Implementation of Digital Twin Is Accelerated

Conceptually and Technologically
Driven by data and model and supported by new-generation information technology,

digital twin can achieve the maximum closed-loop optimization of the whole factor,
whole industrial chain and whole value chain of enterprises through real-time connec-
tion, mapping, analysis and feedback of the asset behavior of the physical world. In
2020, several international organizations for standardization set about exploring the
standardization of digital twin, and publicized some POC (Proof of Concept) projects
(see Table 3.4).
Digital twin involves technologies as follows: perception and control technology
represented by intelligent sensing, IoT and automatic control, computing and inte-
gration technology represented by cloud computing and edge computing, modeling-
analysis technology represented by modeling simulation, big data and machine
learning, human–computer interaction technology, and featured drive technology
represented by system engineering, MBSE, digital thread and administration shell.
In recent years, major corporations in the world continue to facilitate the construction
of digital-twin-related platforms and tool software. For instance, there are Siemens’
Simcenter Digital Twin Simulation Platform, ANSYS’ Twin Builder Digital Twin
Analysis Platform, Microsoft’s Azure Digital Twins Platform, GE’s Predix Cloud
Service Platform for Industrial Data Analysis and Development, and Bentley’s
iTwin Services Tool. As related technologies mature, digital twin perhaps solves
the problem of connecting and interacting between the virtual world and the real
world, with considerable value in application.
3Data Source: White Paper on the Application of Digital Twin 2020 released by China Electronics
Standardization Institute.
Chapter 4
World Digital Economy Development
4.1 Outline
Today, the world is undergoing great changes that have not been seen in a century,
with a complex and grim international economic pattern. A new round of scientific
and technological revolution and industrial transformation accelerates, and digital-
technology innovation comes to a stage of multiple-filed breakthroughs and cluster
development. This triggers new technologies, new industries, new business forms
and new models, and induces far-reaching changes in production factors, orga-
nizational forms and competitive paradigms. Under the impact of the COVID-19
pandemic, global economy shrank by around 3.3% in 2020. International Monetary
Fund predicted that global economy would grow by 6% in 2021. Digital economy
becomes the primary strategic choice for major countries in the world to hedge against
the impact of the COVID-19 pandemic and speed up socioeconomic transformation.
Globally, China and the United States rank top two in the scale of digital economy,
and the gap in digital-economy competitiveness between them further narrows.
The integration and development of global digital economy deepen. Digital indus-
trialization develops steadily, basic telecommunications industry advances stably,
electronic information manufacturing industry grows firmly, information technology
service industry like big data, AI and blockchain maintains a high-speed-development
trend, and Internet information content service industry expands against headwinds,
with eye-catching performance. Industrial digitalization serves as a key leading force
that stimulates global digital economy. Fintech emerges vigorously, and blockchain
finance and smart finance attract wide attention. Various countries in the world
all deploy digital currencies, and the market competition becomes increasingly
fierce. Struck by the COVID-19 pandemic, global total retail sales drop off; yet,
E-Commerce grows against headwinds, and cross-border E-Commerce develops at
a high speed.
In the long term, the COVID-19 pandemic continues to spread, which facili-
tates the diversification, regionalization and localization of international supply-chain

https://doi.org/10.1007/978-981-19-9323-7_4
98 4 World Digital Economy Development
systems, and has a deep impact on the pattern of international labor division. Digital
economy accelerates its integration and penetration into other industries and becomes
a new driving force for global economic growth.
4.2 The Development Trend of Global Digital Economy
Affected by the COVID-19 pandemic, the momentum of global economic growth

weakens, and uncertainties and instabilities intensify. However, digital economy
achieves remarkable progress. Enterprises have an active part in innovation and
business, digital investment increases significantly, and digital trade grows against
headwinds.
4.2.1 Countries Actively Promote the Strategic Layout

in Cutting-Edge Fields
Major countries and regions in the world regard digital economy as the primary
choice for development strategies, actively advance the legislative work of digital
economy, deploy in cutting-edge fields, and foster the standardized and innovative
development of digital economy.
1. Actively Promoting the Legislative Work of Digital Economy
Major countries in the world endeavor to boost the legislation of digital economy.
In May 2020, Japan issued The Law on Improving the Transparency and Fairness of
Specific Digital Platforms. As the first law in Japan that restricts large IT enterprises,
the Law aims to urge relevant enterprises to disclose their signing conditions, pricing
methods, refunding process and operational methods in relation to enterprises that
open stores on their platforms. Besides, the Law requires IT enterprises to report
their business operations to the Ministry of Economy, Trade and Industry of Japan
on an annual basis, so as to create a highly transparent business environment.
The European Union has played an active role in the legislative work for competi-
tion in digital economy field. In December 2020, the European Commission launched
the public proposals of Digital Services Act and Digital Markets Act, which aimed
to define the responsibilities of digital-service providers, strengthen supervision on
social media, E-Commerce platforms and other online platforms, establish a more
open and fairer European digital market for free competition, enhance the innovation,
growth and competitiveness of European digital industry, and provide consumers with
safer, more transparent and more trustworthy online services. The public proposal of
Digital Markets Act clearly proposed the “gatekeeper” system, further clarified regu-
latory obligations, regulatory measures, sanctions and other innovative measures, and
strengthened regulations on online platforms. In April 2021, the European Commis-
sion issued Artificial Intelligence Regulation, which aimed to build Europe into a
4.2 The Development Trend of Global Digital Economy 99
trusted global AI center. The new Regulation combined the legal framework of AI
with the coordination plan of the EU member states to strengthen the EU’s invest-
ment and innovation in AI while safeguarding the basic rights of individuals and
enterprises. For example, for the use of face recognition and other technologies, a
prior-review system was introduced.
The United States also speeds up the introduction of relevant laws. In May 2021,
the U.S. Senate zealously launched the United States Innovation and Competition Act,
which covered clauses such as aerospace, 5G, “Made in the U.S.A.”, cybersecurity
and AI, unmanned aerial vehicles, medical research and antitrust.
2. Continuously Strengthening the Strategic Deployment of Digital Economy
In order to adapt to new challenges from the development of digital technology,
major economies in the world continuously strengthen and improve national top-
level scientific and technological strategic layout and the strategic deployment of
digital economy, with an attempt to forge new advantages for the future development
of digital technology.
In October 2020, the White House of the United States released National Strategy
for Critical and Emerging Technology, which re-defined 20 critical and emerging
technologies, and proposed to consolidate the U.S. global leadership in the field of
quantum, AI and other cutting-edge technologies. In February 2021, the Information
Technology and Innovation Foundation of the United States released the report A
U.S. Grand Strategy for the Global Digital Economy, which proposed that the U.S.
government must formulate a comprehensive and grand strategy to guide U.S. IT and
digital policies in order to safeguard its own leadership in the global digital economy.
Since 2020, the European Commission has published strategic documents such
as A European Strategy for Data, White Paper on Artificial Intelligence and Shaping
Europe’s Digital Future, which stated that the European Commission planned to
invest immense amount of money to support the development of revolutionary
and strategic technologies like AI, supercomputer, quantum communication and
blockchain. In alignment with “2030 Common Digital Vision” proposed by the
European Union, in March 2021, the European Commission published 2030 Digital
Compass: The European Way for the Digital Decade, which transformed the EU’s
digital vision in 2030 into specific provisions, and put forward the vision, goal and
path to successfully realize the digital transformation of Europe by 2030. In March
2021, the European Union adopted the first strategic plan for Horizon Europe, viz.
Horizon Europe Strategic Plan 2021–2024, which determined critical strategic orien-
tation, strategic plan, major task and international cooperation in research and inno-
vation in next three years. In May 2021, the European Commission issued the new
version of EU Industrial Strategy, which focused on strengthening the resilience of
single market against the backdrop of the COVID-19 pandemic, coping with Euro-
pean strategic dependencies, and accelerating the green and digital transition, with a
series of measures, including reviewing the dependencies in strategic areas such as
semiconductor, cloud and edge technology, promoting the establishment of processor
and semiconductor technology alliance and industrial data, edge and cloud alliance,
and providing small and medium-sized enterprises with business models that can
meet sustainable development and support data-driven development.
In January 2021, the Ministry of Science and Information and Communica-
tions Technology of South Korea released “5G + ” Strategic Promotion Plan in
2021 (Draft) and Development Plan for MEC-Based 5G Integrated Services, which
planned to invest 165.5 billion KRW to develop new 5G-integrated technologies and
lead the innovation ecology of global 5G industry. At the end of 2020, Japan released
Basic Plan for Science and Technology (Draft), which proposed that in future scien-
tific and technological innovation, Japan would focus on developing digital tech-
nology and promoting the digital upgrading of research systems. In June 2021, the
Ministry of Economy, Trade and Industry of Japan officially released Semiconductor
· Digital Industry Strategy, which further clarified the importance of the semicon-
ductor industry as the basis of digital industry, and explicitly stated that Japan would
pursue “beyond ordinary industrial policies” to improve the domestic semiconductor
manufacturing capacity and the localization level of new-generation manufacturing
technology.
4.2.2 The Development Pattern Basically Remains Stable
The trend of digitalization of global economy intensifies. Traditional industries accel-

erate their transformation and upgrading towards digitalization, networking and intel-
ligentization, and the scale of digital economy continues to expand. According to
White Paper on Global Digital Economy: New Dawn of Recovery Under the Impact of
the COVID-19 Pandemic published by China Academy of Information and Commu-
nications Technology (CAICT), in 2020, the scale of digital economy in 47 coun-
tries in the world achieved 32.6 trillion U.S. dollars, with a year-on-year increase of
3.0%, accounting for 43.7% of their GDP. Digital economy becomes a new driving
force for global economic development. Taking the income level into account, the
scale of digital economy in high-income countries reaches 25.3 trillion U.S. dollars,
accounting for 77.6%. In consideration of economic development, the scale of digital
economy in developed countries is nearly treble that of developing countries.
In the development of digital economy in various countries, the United States
relies on the advantages in technological innovation and takes the lead in global
digital economy. In 2020, the scale of digital economy in the United States real-
ized 13.6 trillion U.S. dollars and ranked the 1st in the world again. With strong
domestic market advantages, China vigorously implements technological innova-
tion and model reform. The volume of Chinese digital economy ranks the 2nd in
the world, with a scale of 5.4 trillion U.S. dollars. Germany, Japan and the United
Kingdom rank the 3rd, 4th and 5th, with a scale of 2.54 trillion U.S. dollars, 2.48
trillion U.S. dollars and 1.79 trillion U.S. dollars respectively. In the scale of digital
economy, the top five countries account for 79.2% of the total scale of the world.
4.2 The Development Trend of Global Digital Economy 101
According to Global Digital Economy Competitiveness Development Report 2020

released by Shanghai Academy of Social Sciences, in terms of national competitive-
ness, the United States has ranked the 1st in the world in digital economy competi-
tiveness for four years running, and Singapore and China rank the 2nd and 3rd respec-
tively. Particularly, the gap between China and the United States in digital economy
competitiveness narrows annually. In terms of sub-indexes, China has ranked the
1st in the world in digital industry competitiveness for four consecutive years, with
great strength in digital infrastructure competitiveness. Yet, China needs to improve
digital innovation competitiveness and digital governance competitiveness.
4.2.3 Internet Enterprises Develop Rapidly
The analysis of the financial-report data of listed companies in global digital economy
in 2020 unveils that in the top-50 list of business revenue, the United States has 31
companies on the list, with the largest number. In the top 10 list of business revenue,
the United States occupies seven seats, of which Apple ranks the 1st. As the financial-
report data in 2020 suggest, Apple, Google and Microsoft ranked top three, while
JD, Alibaba and Tencent of China ranked the 4th, 6th and 10th respectively. Table 4.1
shows “List of Top 50 Digital Economy Corporations in Global Business Revenue
in Fiscal Year 2020”.
4.2.4 The Investment in Digital Economy Increases

Significantly
Against the background of slow recovery of global economy, global investment and
financing to Internet increase significantly. According to the data of CB Insights,
in the first quarter of 2021, global investment and financing to Internet totaled 99.2
billion U.S. dollars, up 66.7% quarter on quarter, up 164.5% year on year. The number
of financing reached 5,147, up 8.4% quarter on quarter, up 11% year on year. The
United States and China remain the most active markets for investment and financing
to Internet in the world and stand in the first echelon for many years. Figure 4.1 shows
overall financing of global digital economy enterprises from 2020 to Q1 2021.
In the investment stage, the early investment accounted for 76.9%, with a quarter-
on-quartergrowth rate of 0.8%. Specifically, angel investment accounted for 56.2%
and A-round investment accounted for 20.7%. In the financing field, only financing
in Internet accounted for more than 25%. 129 start-ups that engaged in blockchain
raised around 2.6 billion U.S. dollars, more than 2.3 billion U.S. dollars raised in
341-time financing in 2020.
Table 4.1 List of Top 50 digital economy corporations in global business revenue in fiscal year 2020 (Unit: 100 Million U.S. Dollars)
102
Ranking Corporations Countries and regions Business revenue Ranking Corporations Countries and regions Business revenue
1 Apple The United States 2,745.2 26 Flex Singapore 231.9
2 Google The United States 1,717.0 27 Visa The United States 218.5
3 Microsoft The United States 1,471.1 28 Micron The United States 214.4
4 JD.com China 1,016.4 29 PAYPAL The United States 203.0
5 Dell The United States 921.4 30 Salesforce The United States 202.9
6 Alibaba China 858.4 31 LG South Korea 190.6
7 Facebook The United States 789.8 32 DXC The United States 188.9
8 Intel The United States 781.0 33 CDW The United States 180.5
9 IBM The United States 750.3 34 Avnet The United States 177.3
10 Tencent China 666.9 35 Applied Materials The United States 172.0
(AMAT)
11 HP The United States 566.4 36 CTSH (CTSH.O) The United States 167.5
12 Lenovo China 525.5 37 Western Digital The United States 166.2
Corporation
13 Cisco The United States 480.7 38 ASML Holding N.V The Netherlands 160.6
14 tsmc Taiwan, China 447.1 39 MasterCard The United States 156.0
15 Oracle The United States 394.0 40 Baidu China 155.2
16 Xiaomi China 339.8 41 Meituan China 154.3
(continued)
4 World Digital Economy Development
Ranking Corporations Countries and regions Business revenue Ranking Corporations Countries and regions Business revenue
17 SAP Germany 326.8 42 NVIDIA The United States 147.8
18 Canon Japan 299.7 43 ADP The United States 145.6
19 Jabil Inc The United States 275.9 44 Texas Instruments The United States 137.4
20 Arrow Electronics The United States 275.6 45 Uber The United States 129.8
21 Nokia Finland 260.6 46 NetEase China 102.3
22 Ericsson Sweden 255.6 47 STMicroelectronics The Netherlands 97.4
23 Broadcom The United States 238.9 48 Yahoo! JAPAN Japan 97.4
24 SYNNEX The United States 238.4 49 CGI Group Inc Canada 91.1
25 Qualcomm The United States 235.3 50 AMD The United States 86.5
Data Source: Wind Global Listed Companies Database
4.2 The Development Trend of Global Digital Economy
103
Fig. 4.1 Overall financing of global digital economy enterprises from 2020 to Q1 2021
4.2.5 Global Digital Trade Grows Against Headwinds
Digital trade propels the development of global trade towards digital services.
According to White Paper on the Development of Digital Trade 2020 published
by China Academy of Information and Communications Technology (CAICT), the
scale of global digital trade (export) reached 3,192.59 billion U.S. dollars in 2019,
with an against-headwinds growth rate of 3.75%, higher than these of trade in service
and goods trade year on year. Global digital trade (export) accounted for 52% of trade
in service and for 12.9% of all the trade. In 2020, the global outbreak of the COVID-19
pandemic further quickened the development of digital trade.
In the development of digital trade, the digital divide remains grim. In comparison
with trade in service and intangible goods trade, developed economies possess more
prominent advantages in the field of digital service trade. In 2019, the scale of digital-
service export of developed economies reached 2431 billion U.S. dollars, accounting
for 76.1% of global digital-service export, higher than that in trade in service and
goods trade.
The United States and Europe dominate global digital trade market. In 2019, five
countries, i.e. the United States, the United Kingdom, Ireland, Germany and the
Netherlands, accounted for c. 50% of global digital-service export. Among them, the
United States alone accounted for 16.7%.
4.3 Digital Industrialization Develops Steadily 105
4.2.6 Digital Economy Helps to Fight the COVID-19

Pandemic Globally
The COVID-19 pandemic rages globally. As macroeconomic data suggest, global

fixed asset investment, consumption and foreign trade decline drastically. In contrast,
digital industry jumps against headwinds and makes a positive contribution to overall
economy. Taking online retail as an example. The data released by National Bureau
of Statistics of China indicate that in 2020, China’s online retail sales amounted
to 11,760.1 billion yuan, up 10.9% over 2019. Among them, online retail sales of
physical goods achieved 9759 billion yuan, with an increase of 14.8%, accounting
for 24.9% of the total retail sales of social consumer goods. In online retail sales of
physical goods, food, clothing and consumer goods increased by 30.6%, 5.8% and
16.2% respectively. According to the market research report released by McKinsey &
Company, in 2019, c. 86% of Italian households paid in cash. Since the end of
February 2020, Italian E-Commerce transaction volume had increased by more than
80%, and the number of consumers using cash had decreased substantially. According
to 2020 Consumer Payment Attitudes Study organized by VISA, a credit card
company, three quarters of consumers in Southeast Asia use non-contact payment
more often than two years ago. According to a market research report released by
Brazilian Consumer Defense Association, in the first two months of 2021, in Brazil,
national mobile-payment transaction time and volume increased by 112% and 108%
year on year respectively, and the number of consumers using cash decreased remark-
ably. Under the impact of the COVID-19 pandemic, new business forms like online
education, telework and telemedicine are in the ascendant. Some enterprises engaged
in digital economy understand the changes in consumers’ psychology and behavior
in the outbreak of the COVID-19 pandemic, seize the opportunity of economic
recovery, and extend their industrial chains. For instance, in “2025 Medium-Term
Business Plan” published by NEC Corporation, NEC Corporation will focus on such
business areas as “e-government”, “digital finance”, “global 5G” and “core digital
transformation” in the future.
4.3 Digital Industrialization Develops Steadily
Over the past year, global basic telecommunications industry advanced steadily,
electronic information manufacturing industry grew stably, information technology
service industries like big data, AI and blockchain maintained a high-speed devel-
opment trend, and Internet information content service industry progressed against
headwinds, with eye-catching performance.
4.3.1 Basic Telecommunications Industry Forges Ahead

in a Stable Way
Global basic telecommunications industry displays an upward trend, and 5G market

scale grows fast, which drive the steady development of telecommunications industry.
1. Telecommunications Industry Remains Relatively Stable
In the light of the data released by Grand View Research, a market consulting agency,
the scale of global telecommunications service market in 2020 reached 1,657.7 billion
U.S. dollars, of which mobile data service market took up the largest share, accounting
for one third. In 2020, impacted by the COVID-19 pandemic, the demand for telecom-
munications services in some corporate and commercial apps slowed down, which
hit the business revenue of telecommunications enterprises. In 2020, the business
revenues of AT&T, Verizon and NTT all sank.
In several decades, global communication network boasted one of prominent areas
with continuous technological advancement. As users multiply, demands for high-
speed data connection and value-added management service keep growing, which
promotes long-term sustainable growth of global telecommunications market. As
Grand View Research predicts, the market scale will grow at a CAGR of 5.4% from
2021 to 2028.
2. 5G Service Market Grows Fast
According to the data released by Grand View Research, a market consulting agency,
in 2020, the scale of global 5G service market reached 41.48 billion U.S. dollars.
Predictably, the market scale will grow at a CAGR of 46.2% from 2021 to 2028.
In the construction of 5G in the world, the Asia–Pacific Region boasts the largest
investment and biggest support, followed by North America and EMEA (Europe, the
Middle East and Africa). By December 2020, the total number of 5G base stations
in the world had exceeded 1.02 million. To be specific, China has 718,000 5G base
stations, South Korea has more than 121,000 5G base stations, the United States has
around 100,000 5G base stations, Germany has more than 45,000 5G base stations,
and Japan has more than 35,000 5G base stations.
4.3.2 Electronic Information Manufacturing Industry

Advances Steadily
The COVID-19 pandemic has an impact on global electronic information industry;

yet, the overall market scale grows firmly, especially the semiconductor market.
1. Global Semiconductor Market Stabilizes and Rebounds
According to the data of Semiconductor Industry Association (SIA) of the United
States, in 2020, global semiconductor market stabilized and rebounded, with a busi-
ness revenue of 439 billion U.S. dollars, up by 6.5% over 2019. In particular, in the
Fig. 4.2 The business revenue of global semiconductor industry from 2017 to 2020
fourth quarter, the business revenue of semiconductor industry reached 117.5 billion
U.S. dollars, with an increase of 8.3% year on year, offsetting the sudden drop in
March and April. The business revenue of American chip manufacturers realized
c. 208 billion U.S. dollars, accounting for around 47% of the global semiconductor
market.
Figure 4.2 shows the business revenue of global semiconductor industry from
2017 to 2020.
In April 2021, Semiconductor Industry Association (SIA) and Boston Consulting
Group (BCG) of the United States jointly published the report Strengthening the
Global Semiconductor Supply Chain in an Uncertain Era, which emphasized that
presently, Japan, South Korea, China (Taiwan and the mainland of China) took up c.
75% of global semiconductor manufacturing capacity. In the next decade, the global
semiconductor supply chain calls for the investment of around 3 trillion U.S. dollars
(R&D and capital expenditure), and semiconductor companies need to continuously
invest more than 90 billion U.S. dollars a year to develop more complex chips,
which amount to around 20% of global semiconductor sales. The mainland of China
is expected to become the largest semiconductor manufacturing base in the world in
the next decade.
2. The Growth Rate of the Business Revenue of Global Telecommunications
Equipment Market Hits a New High
According to the report released by Dell’ Oro Group, in 2020, global telecom-
munications equipment market reached c. 114.5 billion U.S. dollars in business
revenue, with an increase of 7% year-on-year. As the fastest growth rate since 2011, it
mainly resulted from the robust growth in business revenue in various wireless fields,
including wireless access network and mobile core network, as well as the moderate
growth in the number of broadband access. Among them, the growth rate of the busi-
ness revenue of 5G wireless access network and core network proved beyond expec-
tation. As predicted, in 2021, the business revenue of the niche market would reach
20 billion U.S. dollars, via which the total business revenue of telecommunications
equipment market achieved 120 billion U.S. dollars.
3. Global 5G Smart Phones Develop Rapidly
As the data of Strategy Analytics suggest, global 5G smart phones develop rapidly.
The shipment realizes a year-on-year increase of 458%, leaping from 24 million in
the first quarter of 2020 to 133.9 million in the first quarter of 2021. In global market
share, in the first quarter of 2021, Apple’s mobile phone sales totaled 40.4 million,
with a market share of 30.2%, ranking the 1st in the number. The market shares
of Chinese brands OPPO, vivo and Xiaomi mobile phones reached 16.1%, 14.5%
and 12.4% respectively, ranking the 2nd, 3rd and 5th in number. The market share
of Samsung’s mobile phone reached 12.7%, ranking the 4th in number. The market
share of other mobile phones was 14.2%.
Table 4.2 shows the market share and shipment of global 5G mobile phones.
4. Global Wearable Device Market Continues to Expand
According to IDC’s Worldwide Quarterly Wearable Device Tracker, from 2013 to

2020, global shipment of wearable devices presented an uptrend year by year. In
2020, global shipment of wearable devices realized 444.7 million, up 28.4% year on
year. Particularly, in the fourth quarter of 2020, global shipment of wearable devices
reached 153.5 million, with an increase of 27.2% year on year. In niche brands,
Apple’s shipment of wearable devices reached 55.6 million in the fourth quarter of
2020, with an increase of 27.2% year on year and a market share of 36.2%, ranking
the 1st. The shipments of Samsung and Huawei’s wearable devices totaled 13 million
and 10.2 million respectively. IDC predicts that the average CAGR of wearable device
market will be 12.4% in the next five years, reaching 637.1 million by 2024.
Table 4.2 The market share and shipment of global 5G mobile phones
Companies The first quarter of 2020 The first quarter of 2021
Shipment/1 Million Market share (%) Shipment/1 Million Market share (%)
Apple 0 0 40.4 30.20
OPPO 1.7 7.10 21.5 16.10
vivo 2.6 10.80 19.4 14.50
Samsung 8.3 34.60 17 12.70
Xiaomi 2.5 10.40 16.6 12.40
Others 8.9 37.10 19 14.20
Total 24 100 133.9 100
Data Source Strategy Analytics
4.3.3 Software and Information Technology Service Industry

Develops Quickly
The continuous innovation and wide-range application of information technology

set off the robust development of global IoT industry. The competition in cloud
computing market becomes increasingly fierce, and big data service industry displays
prominent potential and strong growth momentum. Blockchain develops rapidly and
produces positive results in various countries.
1. IoT Industry Continues to Flourish
According to data released by IDC, global IoT expenditure reached 690.47 billion
U.S. dollars in 2020. In the future, IoT expenditure on manufacturing, government
and consumer will account for more than half of the total market expenditure. Partic-
ularly, IoT expenditure in consumer areas such as IoV service, smart home and
medical health monitoring will grow at a high speed. As IDC predicts, global IoT
market scale will realize 1.1 trillion U.S. dollars by 2025, with an average CAGR of
11.4%.
2. The Competition in Cloud Computing Market Becomes Increasingly Fierce
As data released by IDC indicate, in 2020, the sales revenue of global cloud
computing market increased by 24.1% year on year, with a total revenue of 312.4
billion U.S. dollars. Specifically, the market sales revenue of Infrastructure as a
Service (IaaS) reached 67.2 billion U.S. dollars, with an increase of 33.9% year on
year. The market sales revenue of Platform as a Service (PaaS) achieved 47.6 billion
U.S. dollars, with an increase of 31.8% year on year. The market sales revenue of
Software as a Service (SaaS, including system-infrastructure software and service
and application software as a service) realized 197.6 billion U.S. dollars, accounting
for more than 63.2% of global cloud computing market.
Table 4.3 shows the sales revenue, market share and growth rate of global cloud
computing market from 2019 to 2020.
Table 4.3 The sales revenue, market share and growth rate of global cloud computing market from
2019 to 2020
Type of 2019 2020 Growth rate
Service Sales revenue Market share Sales revenue Market share (%)
/100 Million /100 Million (%)
U.S. dollar U.S. dollar
IaaS 502 19.90% 672 21.50 33.90
PaaS 361 14.40% 476 15.20 31.80
SISaa 402 16% 492 15.70 22.40
AppSaaS 1,252 49.70% 1,484 47.50 18.60
Total 2,517 100% 3,124 100 100
Data Source IDC
In corporate market share, in 2020, the total cloud computing revenue of top five
public cloud service providers (i.e. AWS, Microsoft, Salesforce, Google and Oracle)
reached 118.8 billion U.S. dollars, with an increase of 32% year on year, accounting
for 38% of global market. In IaaS, SISaaS and PaaS markets, Amazon ranks the 1st
with the market share of 24.1%, and Microsoft ranks the 2nd with the market share
of 16.6%. Microsoft plays an influential role in SaaS market. In the second half of
2020, Microsoft had a market share of 8.7%, and Salesforce took the lead with a
market share of 9.3% in SaaS market.
3. Big Data Service Market Possesses Great Potential
According to the data of MarketsandMarkets, a market consulting agency, in 2020,
global big data service market scale approximated 138.9 billion U.S. dollars. From
2021 to 2025, the average CAGR of global big data service market will reach 10.6%.
By 2025, the scale of global big data service market will grow to 229.4 billion
U.S. dollars. Regionally, owing to the wide use of IoT devices, North America will
become the region with the largest market share of global big data service, and the
Asia−Pacific Region will have the highest CAGR of big data service market, with
the market share continually rising.
4. Blockchain Market Continues to Expand at a High Speed
In recent years, blockchain technology has been widely used in various fields, with
high popularity in the market. According to incomplete statistics from 01 Think
Tank, from 2020 to the first quarter of 2021, global blockchain sector raised a total
of 1,010 times, with a publicly disclosed financing of 13.438 billion yuan. In the first
quarter of 2021, there were 365 times of financing in the global blockchain field, and
the number of financing presented an overall uptrend. The financing reached 8.697
billion yuan, with an increase of 851.53% over the fourth quarter of 2020.
Stimulated by capital factors, global blockchain market continues to grow at a
high speed. KEYFAN Exchange carried out statistical survey of global blockchain
data, revealing that blockchain market scale valued 3.67 billion U.S. dollars in 2020.
Predictably, it continues to expand at a CAGR of 82.4% from 2021 to 2028.
4.3.4 Internet Information Content Service Industry Grows

Against Headwinds
In view of the continuous maturity and wide application of 5G technology, global

Internet information content service industry develops rapidly, the scale of digital
advertising market grows constantly, the scale of content distribution network
market expands incessantly, the scale of streaming media market progresses against
headwinds, and the scale of online game market hits a new high.
1. The Scale of Digital Advertising Market Keeps Thriving
With the continued development of Internet, the scale of global digital advertising
market grows year after year on the whole. As the report of Univ Datos suggests,
digital advertising serves as a necessary tool for publishers, advertising technology
providers and advertising agencies. In 2020, the scale of digital advertising market
realized around 300 billion U.S. dollars. As estimated, by 2023, the expense on digital
advertising will account for two thirds of the total advertising expenses. Predictably,
global digital advertising market will rise with a CAGR of 7.7% from 2021 to 2026.
By 2026, the market scale will value 626 billion U.S. dollars.
2. Content Distribution Network Market Expands Continuously
Over the past year, with the continuous application of high-speed networks, the quan-
tity of data exchanged on the Internet rose constantly, and the scale of content distri-
bution network market grew steadily. As the data of Grand View Markets disclosed,
the scale of global content distribution networks market valued 10.73 billion U.S.
dollars in 2020. As estimated, the CAGR of global content distribution network
market will reach c. 22.1% from 2021 to 2028.
3. Music Streaming Media Market Grows Against Headwinds
The COVID-19 pandemic accelerates the consumption of streaming media content.
The number of subscribers to videos, music, games, podcasts and other services
continues to enlarge, with significant growth in music market. According to Global
Music Report 2020 released by International Federation of the Phonographic Industry
(IFPI), against the backdrop of the COVID-19 pandemic, offline performances came
to a standstill, and streaming media service played a pivotal role in the industrial
growth and hedged against the impact of income decline in other fields. In 2020,
the sales revenue of global recorded music market went up, and the market scale
reached 21.6 billion U.S. dollars, with a growing trend for six consecutive years.
More precisely, the sales revenue of streaming media market rose by 19.9% to 13.4
billion U.S. dollars.
4. The Scale of Online Game Market Hits a New High
According to the data of Newzoo, a market research agency, in 2020, global online
game market sales revenue totaled 159.3 billion U.S. dollars, with an increase of
9.3% year on year. Concretely speaking, the scale of global mobile game market
increased remarkably, with an overall increment of c. 20 billion U.S. dollars, up
25.6% year on year. In the future, the participation of global online game player and
overall sales revenue of game market would continue to grow. In 2021, the scale of
global online game market would hit 189.3 billion U.S. dollars, and the sales revenue
of global cloud game market would exceed 1 billion U.S. dollars for the first time.
4.4 Industrial Digitalization Continues to Deepen
In terms of global digital economy, the trend of integrated development further

deepens, and industrial digitalization becomes a key force that drives the development
of global digital economy.
4.4.1 The Digitalization of Manufacturing Industry Further

Advances
Developed countries accelerate the practice of “Re-industrialization”, take new-

generation information technology as a key factor to solidify or re-shape the compet-
itive advantage of industrial chains, and deepen the integrated development of
digital technology and the manufacturing industrial system. And emerging market
economies speed up their industrialization. The pace of digitalization of industrial
robots quickens and promotes the digital transformation of manufacturing industry.
1. Industrial Internet Industry Develops Rapidly
With the advancement of new technologies like AI, IoT and cloud computing, a new
round of global scientific and technological revolution and industrial transforma-
tion comes to rise. In order to take the leading position in economic growth, major
manufacturing countries all increase their investments in industrial Internet, aiming
to promote the networked, digital and intelligent development of manufacturing
industry by deepening the integration of new-generation information technology
and manufacturing industry.
Considering the development of global industrial Internet, countries and regions
like the United States, Europe and the Asia−Pacific Region play a key role in the
development of industrial Internet. Germany rests on the strong foundation in automa-
tion to promote the application of “Industry 4.0”. The United States vigorously
develops industrial Internet and implements the advanced manufacturing strategy.
France, Japan, South Korea and Sweden also start manufacturing revitalization plans.
As Accenture predicts, by 2030, industrial Internet will produce more than 15 trillion
U.S. dollars in global economic growth.
2. The Scale of Industrial Robot Market Grows Continuously
According to the data of International Federation of Robotics (IFR), by the end of
2019, 2.7 million industrial robots kept running in global factories, with an increase
of 12%. In 2019, the sales of new industrial robots remained at a high level, and
global shipment of industrial robots reached 373,000.
In regional distribution, Asia boasts the market with the strongest demand for
industrial robots, whose number of new industrial robots accounts for two thirds of
the world. According to the data of Frost & Sullivan, as estimated, global industrial
robot market will increase from 22.2 billion U.S. dollars in 2020 to 38.3 billion U.S.
dollars in 2024, with a CAGR of 12.2%.
4.4 Industrial Digitalization Continues to Deepen 113
4.4.2 The Digitalization of Service Industry Accelerates
1. The Scale of Online Education Market Grows Rapidly
The COVID-19 pandemic further alters the scale of online education market.
According to the data of UNESCO, in March 2020, schools had to suspend classes
due to the COVID-19 pandemic, which perturbed more than 1.2 billion students in
186 countries. Besides, the number of students who chose telelearning soared in
an unprecedented way. As the data of Grand View Research demonstrate, the scale
of global online education market exceeded 250 billion U.S. dollars in 2020. The
emergence of new technologies like AI, virtual reality (VR) and cloud-architecture-
based Learning Management System (LMS) will promote the rapid growth of online
education market. As estimated, the average annual growth rate of the market scale
will be higher than 21% from 2021 to 2027.
Regionally, with rich high-quality education resources and complete network
infrastructure, the scale of online education market in North America accounted for
c. 35% of the world in 2020, and the average annual growth rate of the market scale
will exceed 17% in the next five years, as predicted. In Europe, several top German
universities offer online learning courses, and the scale of online education market
maintains rapid growth.
2. Online Medical Market Develops Rapidly
In the outbreak of the COVID-19 pandemic, a considerable amount of medical and
health care services like online consultation, telemedicine and health monitoring are
transferred to digital platforms. As the data of Global Industry Analysts suggest, in
2020, the scale of global online medical market achieved c. 152.4 billion U.S. dollars.
As estimated, the average CAGR of the market scale will reach 18.8% from 2020
to 2027. By 2027, the scale of global online medical market will reach 508.8 billion
U.S. dollars.
Enterprises actively promote the development of online medical business. Zocdoc
platform collaborates with other medical institutions on launching the COVID-19-
vaccination appointment service. At the beginning of 2021, Microsoft announced
to establish partnerships with MIT, Harvard University and Verily to promote
the construction of AI and cloud service network, which would cover more than
168,000 medical institutions worldwide. Home State Health, a healthcare company,
reached a cooperation intention with Babylon, planning to provide users with online
consultation services by means of mobile apps.
4.4.3 Agricultural Digitalization Advances Steadily
The integrated development of new-generation information technology and agricul-

ture deepens, which accelerates the realization of online monitoring, precision oper-
ation and digital management of agricultural production, and fosters the “agricultural
digital revolution”.
1. Smart Agricultural Market Develops Firmly
As the report of MarketsandMarkets suggests, in the statistics of agricultural type (e.g.
precision agriculture, animal husbandry, aquaculture and greenhouse cultivation),
hardware (e.g. global positioning systems, unmanned aerial vehicles, sensors, radio
frequency identification and LED plant growth lights), software and service, the
scale of global smart agriculture market reached 13.8 billion U.S. dollars in 2020.
Predictably, by 2025, the market scale will increase to 22 billion U.S. dollars, with
an average annual growth rate of 9.8%. Particularly, the Asia Pacific Region will see
the fastest-growing market scale.
2. Digital Technology Improves Agricultural Productivity
As the most active agricultural productivity, new-generation information technology
boosts the transformation of agricultural production mode from mechanization to
digitalization.
Agricultural robots become the most widely used equipment in digital agriculture.
The research of Facts and Factors signals that in 2019, the scale of global agricultural
robot and UAV market achieved c. 4.04 billion U.S. dollars, and that the CAGR of
the market scale would exceed 18.9%, as estimated. By 2026, the market scale will
outnumber 13.58 billion U.S. dollars. Presently, global agricultural robot market
focuses on driverless tractors, pesticide-spraying drones, milking robots and other
fields. Take China’s plant-protection UAV as an example. The number of them has
reached more than 60,000, with an operating area of one billion mu.
4.5 The Pace of Fintech Innovation Accelerates
As Fintech develops vigorously worldwide, blockchain finance and AiFinance arouse

wide attention among various sectors. Countries in the world successively deploy
digital currencies, and market competition becomes increasingly fierce.
4.5.1 Blockchain Finance Presents a Trend of Steady

Development
The development of global digital payment spawns the demand for blockchain tech-
nology in various sectors. According to the survey of KEYFAN Exchange, in 2020,
4.5 The Pace of Fintech Innovation Accelerates 115
the payment sector accounted for more than 44% of global blockchain market sales
revenue. Simultaneously, on the premise of ensuring financial security, blockchain
technology helps to simplify the operational process of financial organs, improve
the efficiency of economic services, and achieve the deep integration with more real
economies. In May 2021, World Economic Forum released the report Digital Assets,
Distributed Ledger Technology and the Future of Capital Markets, which probed
into the urgent needs of capital markets for digital transformation, pointing out that
market forces were promoting the digitalization of capital-market participants and
propelling them into considering the use of distributed ledger technology.
4.5.2 AiFinance Faces Both Opportunities and Challenges
As a research report of Mordor Intelligence evinces, in 2020, the scale of global

AiFinance market realized c. 7.91 billion U.S. dollars. As expected, by 2026, the
market scale will reach 26.67 billion U.S. dollars, with an average CAGR of more than
23.1%. With rapid development, AiFinance constantly challenges the existent law,
ethics and order, e.g. how to cope with the risk of disclosure of personal investment
information or sensitive corporate data. To address the problems that arise from
the application of AiFinance calls for the multi-dimensional and multi-level co-
governance among government, market and society, which can reduce the risk of
AiFinance.
4.5.3 Digital Currency Flourishes
Globally, countries step up the R&D of central bank digital currencies. With respect
to the development trend and vision of global central bank digital currencies, Bank
for International Settlements investigates central banks in the world, revealing that
central banks in most emerging-market economies take a positive attitude towards
the development of central bank digital currencies, whilst central banks in developed
countries hold relatively cautious stance. Among 66 central banks, 10% of them
state they will issue central bank digital currencies in the next three years, which
will affect 1.6 billion people, accounting for 20% of the world’s population. In 2020,
the European Union released Report on a Digital Euro. The United States proposes
a digital dollar plan, and Russian Central Bank plans to start testing digital rouble
in 2022. As expected, major central bank digital currencies in the world will be
actualized in five years, which will comprehensively re-shape financial industry and
provide a safer, more reliable and more intelligent new payment system for global
trade, with the furtherance of industrial transformation.
4.6 E-Commerce Maintains a Trend of High-Speed

Development
Under the impact of the COVID-19 pandemic, the total global retail sales decreases on
the whole, yet E-Commerce grows against headwinds. The turnover of E-Commerce
increases slowly in the Asia−Pacific Region and significantly in other regions, with
cross-border E-Commerce booming.
4.6.1 The Market Scale Continues to Rise
E-Commerce sales continues to rise, with higher proportion of retail sales. According
to the data of eMarketer, in 2020, global E-Commerce sales reached 4,280 billion
U.S. dollars, accounting for 18.0% of retail sales, up 4.4% over 2019. As predicted,
the proportion would reach 20.4% by 2022.
Figure 4.3 shows global E-Commerce sales and its proportion of retail sales from
2018 to 2022.
In 2020, global E-Commerce sales increased by 27.6%, up 7.4% over 2019. With
the normalization of the prevention and control of the COVID-19 pandemic and the
recovery of physical commerce, the growth rate of global E-Commerce market scale
would slow down in 2021, as estimated. Figure 4.4 shows the growth rate of global
E-Commerce sales from 2018 to 2022.
Fig. 4.3 Global E-Commerce sales and its proportion of retail sales from 2018 to 2022. Data
Source eMarketer
4.6 E-Commerce Maintains a Trend of High-Speed Development 117
Fig. 4.4 The growth rate of global E-Commerce sales from 2018 to 2022. Data Source eMarketer
4.6.2 The Competition Pattern Becomes More Stable
E-Commerce sales in the Asia−Pacific Region and North America take the lead in
global E-Commerce market. In 2020, E-Commerce sales in the Asia−Pacific Region
totaled 2,448.33 billion U.S. dollars, accounting for 62.6% of global E-Commerce
market. E-Commerce sales in North America and Western Europe accounted for
19.1% and 12.7% respectively. China becomes the largest E-Commerce market in
the world, with the highest penetration rate of E-Commerce. Figure 4.5 shows the
E-Commerce sales of various regions in the world in 2020.
In various countries, in 2020, E-Commerce sales in China realized 2.3 trillion U.S.
dollars, accounting for 29% of the total global E-Commerce sales, ranking the 1st.
E-Commerce sales in the United States reached 795 billion U.S. dollars, accounting
for 10% of the world, ranking the 2nd. The United Kingdom, Japan and South Korea
trod on the heels, with E-Commerce sales of 180 billion U.S. dollars, 141 billion
U.S. dollars and 111 billion U.S. dollars respectively. In 2020, India’s E-Commerce
sales valued 55.6 billion U.S. dollars, ranking the 8th in the world.
In the growth rate of E-Commerce sales, E-Commerce sales in the Asia–Pacific
Region grew quickly in 2020. Among top 10 countries in the growth rate of global E-
Commerce, there were four in the Asia−Pacific Region, i.e. the Philippines (25.0%),
Malaysia (23.0%), India (21.0%) and South Korea (19.5%), as shown in Fig. 4.6.
The development of E-Commerce in European countries accelerated. To be specific,
the growth rate of E-Commerce in Spain increased from 15.7% in 2019 to 22.9% in
2020, in Italy from 15.0% to 20.5%, and in the Netherlands from 15.5% to 21.9%.
Fig. 4.5 The E-Commerce sales of various regions in the World in 2020. Data Source eMarketer
Fig. 4.6 Top 10 countries in the growth rate of global E-Commerce in 2020. Data Source eMarketer
4.6.3 Cross-Border E-Commerce Develops Rapidly
In the outbreak of the COVID-19 pandemic, cross-border E-Commerce developed

fast and became a new growth point for stabilizing foreign trade. According to the
joint research of eMarketer, Statista and J.P. Morgan, in 2020, the cross-border E-
Commerce procurement volume of the United States reached 270.1 billion U.S.
dollars, accounting for 34% of global E-Commerce procurement volume. These in
4.6 E-Commerce Maintains a Trend of High-Speed Development 119
Fig. 4.7 The main reasons that affect cross-border consumption and corresponding proportion of
respondents in 2020. Data Source eMarketer
the United Kingdom, China, Germany and Canada reached c. 81 billion U.S. dollars,
34 billion U.S. dollars, 34 billion U.S. dollars and 25 billion U.S. dollars respec-
tively. Australia, Mexico and Japan followed, with the cross-border E-Commerce
procurement volume reaching 22 billion U.S. dollars, 15 billion U.S. dollars and 14
billion U.S. dollars respectively.
In the sources of cross-border E-Commerce procurement goods in various coun-
tries, in 2020, these of the United States mainly came from China, accounting for
c. 49% of the total, and these of the United Kingdom, Germany and Australia that
came from China accounted for more than 40%.
Owing to shipping restrictions, consumers attach most attention to logistics
tracking when choosing cross-border E-Commerce. As relevant survey data mani-
fest, logistics tracking plays the biggest role in the factors that affect cross-border
consumption, followed by reasonable transporting time and simple return and refund
policy.
Figure 4.7 shows the main reasons that affect cross-border consumption and
corresponding proportion of respondents in 2020.
Chapter 5
World Digital Government Development
5.1 Outline
In recent years, various countries in the world vigorously promote the construction of
digital government and successively release evaluation reports on the development
of E-Government and the construction of digital government. Generally speaking,
various countries mainly center on infrastructure, open government data (OGD),
online governmental service, digital integration and participation and data privacy
and security in the construction of digital government. Infrastructure establishes a
foundation for the construction of digital government. In recent years, infrastructure
construction presents a trend of regional cooperation. In open government data,
more countries boost cross-departmental and cross-field data sharing and opening
by standardizing data and constructing data-sharing platform, so as to release the
value of public data to the maximum and enhance governmental transparency. After
dozens-of-years development, online governmental services continuously improve
service quality, and some countries develop late yet gain the upper hand. Various
countries continue to bridge digital divide and energize citizens for public affairs.
5.2 The Evaluation and Development of World Digital

Government
In recent years, with the development of E-Government in various countries, inter-

national organizations and research institutions such as the United Nations (UN),
IMD Business School (Lausanne, Switzerland), the World Information Technology
and Services (WITSA), Portulans Institute (PI) and Waseda University continue to
launch the evaluation of E-Government. Presently, in the comprehensive evaluation
reports on the development of E-Government, some take countries as evaluation

https://doi.org/10.1007/978-981-19-9323-7_5
122 5 World Digital Government Development
objects, e.g. E-Government Survey issued by the United Nations,1 World Digital
Competitiveness Ranking issued by IMD Business School,2 the Network Readiness
Index jointly issued by Portulans Institute,3 ,4 and International Digital Government
Rankings Report issued by Waseda University.
5.2.1 Comprehensive E-Government Evaluation
In line with the UN E-Government Survey 2020, World Digital Competitiveness

Ranking 2020, Network Readiness Index 2020 and The 15th International Digital
Government Rankings Report (2020), Table 5.1 shows comprehensive evaluation
ranking of E-Government in various countries in the world.
In general, Denmark, Sweden and the United States forge a high level of govern-
mental digitalization and E-Government development, ranking top 10 in the four
typical comprehensive E-Government-related evaluation reports. In this regard,
China stands at the middle-upper level. Its comprehensive evaluation ranking rises
steadily in the UN E-Government Survey 2020, World Digital Competitiveness
Ranking 2020 and Network Readiness Index 2020, yet slightly decreases in The
15th International Digital Government Rankings Report (2020).
Additionally, UN E-Government Survey 20205 takes cities as evaluation objects
and carries out relevant evaluation of E-Government development. The Survey is
published every two years, and the latest report was published in May 2020 (see
Table 5.2 for the ranking). The evaluation involves five dimensions, i.e. privacy and
security, availability, content, service and citizen and social participation.
In E-Government survey that takes countries and regions as the object, China
ranks above the middle level. In the evaluation of E-Government that focuses on
cities, Shanghai ranks in the top 10, in the three dimensions, i.e. availability, content
and citizen and social participation.
1 Data Source: https://publicadministration.un.org/en/research/un-e-government-surveys.

2 Data Source: https://www.imd.org/wcc/world-competitiveness-center-rankings/world-digital-
competitiveness-rankings-2020/.
3 Data Source: https://networkreadinessindex.org/.
4 Data Source: The Network Readiness Index was firstly initiated by World Economic Forum in
2002. In 2019, the Network Readiness Index was re-designed and released by professors Soumitra
Dutta and Bruno Lanvin, original designers of the Index, to represent how to integrate technology
and personnel into effective governance structure to have an appropriate impact on economy, society
and environment. Professors Soumitra Dutta and Bruno Lanvin are heads of Portulans Institute, a
technology and innovation think tank headquartered in Washington D.C.
5 Published in 2020.
5.2 The Evaluation and Development of World Digital Government 123
Table 5.1 Comprehensive evaluation ranking of E-Government in various Countries in the World
Statistics agency UN 2020 IMD business WITSA & PI 2020 Waseda University
school 2020 2019/2020
The number of 193 63 134 64
Countries and
regions involved
Denmark 1 3 2 2
South Korea 2 8 14 9
Esthonia 3 21 23 5
Finland 4 10 6 15
Australia 5 15 12 6
Sweden 6 4 1 10
The United 7 13 10 4
Kingdom
New Zealand 8 22 16 13
The United States 9 1 8 1
The Netherlands 10 7 4 20
Singapore 11 2 3 3
Iceland 12 23 21 21
Norway 13 9 7 12
Japan 14 27 15 7
Austria 14 17 18 24
China 45 16 40 37
5.2.2 The Construction of Infrastructure
In recent years, various countries strengthen the construction of government

infrastructure, constantly promote the construction of government informatization,
government-cloud platform and data-center system, and enhance the rapid deploy-
ment and flexible expansion capacity of E-Government information systems, with
the focus on 5G in the construction of E-Government infrastructure.
British government includes 5G coverage in its “Five Billion Pound Project”,
which builds an IoT that integrates optical fiber broadband and 5G services, provides
more efficient and high-quality services, improves national transportation efficiency
and energy efficiency, optimizes the living environment, and creates a world-
leading digital economy that serves the public, by strengthening the construction
of infrastructure.6
Meanwhile, cloud computing technology facilitates the development of E-
Government infrastructure. From 2019 to 2020, on the basis of Blueprint 2020,
6 Data Source: https://www.albanybeck.com/articles/uk-government-looks-to-boost-digital-infras

tructure-with-large-cash-investments.
Table 5.2 The ranking of

Cities Countries and Regions Ranking
surveyed cities in global
E-Government Seoul South Korea 1
Madrid Spain 2
Yerevan Armenia 3
Auckland New Zealand 4
Paris France 5
Singapore Singapore 6
Amsterdam The Netherlands 7
Helsinki Finland 8
Shanghai China 9
Toronto Canada 10
New York The United States 11
Berlin Germany 12
Oslo Norway 13
Hong Kong China 14
Kiev Ukraine 15
Taipei Taiwan, China 16
Tallinn Estonia 17
Sydney Australia 18
Vilnius Lithuania 19
Stockholm Sweden 20
Canadian government further released The Canada Cloud Adoption Strategy, hoping
to expand online services and save expenses on related applications and infrastructure
construction.7 In order to promote the rational use of energy and sustainable devel-
opment, the local government of Buenos Aires manages urban intelligent lighting
systems based on cloud, which further improves the data-collection method and
raises prediction and service-delivery abilities while reducing costs.8
Regional cooperation becomes a prominent trend in the construction of E-
Government infrastructure. Regionally, the United Nations Economic and Social
Commission for Asia and the Pacific (ESCAP) launches Asia−Pacific Information
Superhighway (AP-IS) Initiative9 . The Initiative focuses on strengthening the seam-
less connection of regional broadband optical backbone networks and bridging digital
divide among countries in the Asia Pacific Region via intensive and open cross-border
infrastructure networks.
7 Data Source: https://www.canada.ca/en/government/system/digital-government/digital-govern

ment-innovations/cloud-services/government-canada-cloud-adoption-strategy.html.
8 Data Source: http://www.interact-lighting.com/global/customer-stories/buenos-aires.
9 Data Source: https://undocs.org/E/ESCAP/CICTSTI (1)/3.
5.2.3 Open Government Data10
Open government data can better meet the needs of the public (especially the vulner-
able groups) in public services, improve the efficiency of public services, and enhance
the transparency and credibility of the government.
Presently, various governments in the world have fully recognized the value
and significance of open government data, and actively promoted related work of
public-data opening. More countries have set up OGD portals. According to UN E-
Government Survey 2020, since 2014, the number of surveyed countries with OGD
portals had leapt from 46 (24%, in 2014) to 153 (80%, in 2020)11 . In more than 50% of
surveyed countries, their governmental websites owned the function of open govern-
ment data (e.g. having data dictionary, accepting the applications for public data,
providing guidance, etc.). Around 50% of the surveyed countries organized projects
like “Data-Hacker Marathon” to drive the opening and use of government data.
Organization for Economic Co-operation and Development (OECD) released Open,
Useful and Re-usable Data (OURdata) Index: 2019. The report demonstrated that
more than 90% of OECD member states legalized formal rules and regulations, stip-
ulating that government data should be freely available in machine-readable format
by default.12 Figure 5.1 shows the number of countries with related characteristics
of OGD portals in 2018 and 2020.
As the basic work for government-data sharing and opening, data standard-
ization and classification possesses great significance in ensuring consistency and
compatibility in data sharing and opening. Currently, in some countries and regions,
departments or cross-departments establish leading groups responsible for devel-
oping national unified data standards. For example, in New Zealand, Statistics New
Zealand performs the responsibility for developing data standards and regulatory
frameworks.13 Besides, some regions launch data standardization and classification
in certain fields and establish strategic partnerships with corporations. For example,
the European Union set up the European Multi-Stakeholder Platform on ICT Stan-
dardization in 2015,14 whose participants included EU member states and EFTA
10 Data Source: World Internet Development Report adopts the definition of government data
in UN E-Government Survey 2020, observing that government data denotes a subset of public
data “recorded and written in any way on any media… acquired or created in the performance
of public duties prescribed by laws or regulations issued on this basis”.
11 Data Source: https://publicadministration.un.org/egovkb/en-us/Reports/UN-E-Government-Sur
vey-2020.
12 Data Source: http://www.oecd.org/governance/digital-government/ourdata-index-policy-paper-
2020.pdf.
13 Data Source: https://www.stats.govt.nz/about-us/data-leadership.
14 Data Source: https://digital-strategy.ec.europa.eu/en/policies/multi-stakeholder-platform-ict-sta
ndardisation.
Fig. 5.1 The number of countries with related characteristics of OGD Portals in 2018 and 2020.
Data Source UN E-Government Survey 2020
(European Free Trade Association) member states,15 EU and international standard-

setting organs, as well as organizations representing small and medium-sized enter-
prises, consumers and other social sectors. In 2020, the European Union further
formulated a rolling plan for ICT standardization and identified 165 action plans in
four fields, so as to promote ICT standardization and implement it under relevant
laws and policies of the EU.16
Data-exchange platforms serve as a major intermediary to realize data corre-
lation, sharing, using and exchange within governments and among governments,
enterprises and the public. Nine OECD member states, e.g. France, Finland, Estonia
and Austria, allow users to publish their own data sets, which in turn generates a
variety of resources and promotes various forms of innovation.17
5.2.4 Online Governmental Services
In recent years, the coverage of online services in various countries continues to

expand. The data of UN E-Government Survey 2020 evidences that except South
Sudan, all the surveyed countries own national portals and back-end systems. The
number of countries and regions that provide at least one online-affair service rose
15 Data Source: EFTA (European Free Trade Association) is an inter-governmental organization of

Iceland, Liechtenstein, Norway and Switzerland.
16 Data Source: https://ec.europa.eu/growth/single-market/european-standards/ict-standardisation.
17 Data Source: http://www.oecd.org/governance/digital-government/ourdata-index-policy-paper-
2020.pdf.
from 140 in 2018 to 162 in 2020, up 16%. Besides, the penetration rate of online
services like application for a driver’s license increased by 100−150%.
Table 5.3 shows the construction of telecom infrastructure and the development
of human capital in countries with very-high online-service level in 2020.
The number of countries that provided mobile-service delivery increased signifi-
cantly (see Fig. 5.2). In 2020, the number of countries that provided the latest infor-
mation via short message service (SMS) or mobile apps increased by an average of
38% over 2018, twice the number of countries that provided the latest information
via subscriptions. In sharing public information, mobile-subscription updates and
apps/ SMS services kept expanding to all fields.
The function of national portals also multiplies (see Fig. 5.3). Nearly 90% of
the surveyed countries have one-stop services, social-networking platforms and E-
Government portals with feedback-option interactive design. In the functional pene-
tration rate, high-income countries have the highest level (97%), whilst low and
middle-income countries have the lowest level (80%). On E-Government portals,
less popular functions include advanced search options, tutorials, chat windows and
corruption reporting, which are available in only 35% of portals of low-income
countries.
Additionally, around 140 countries publish online information on procurement
and bidding processes, and 125 countries establish relevant online procurement plat-
forms. Noticeably, the penetration rate of e-invoice service has yet to be upgraded. As
UN E-Government Survey 2020 suggests, c. 1/3 of countries (67) provide e-invoice
services. Among them, 34% of the surveyed countries with high online-service level
provide similar services, whereas only 5% of the surveyed countries with medium
online-service level provide similar services.
Table 5.3 The construction of telecom infrastructure and the development of human capital in
Countries with very-high online-service level in 2020
Countries with very-high online-service level
Very-High Level Top-Quality Smooth Construction of High-Level
Development of Human Construction of Telecom Infrastructure Development of
Capital + Smooth Telecom + High-Level Human Capital +
Construction of Infrastructure + Development of Human Medium-Level
Telecom Infrastructure High-Level Capital Construction of
Development of Telecom
Human Capital Infrastructure
Albania, Argentina, Kuwait, The United China, Dominican India, Uzbekistan
Brazil, Colombia, Arab Emirates Republic, Republic of
Croatia, Ecuador, Moldova
Kazakhstan, Mexico,
Oman, Peru, Serbia,
Thailand, Türkiye
Material Source UN E-Government Survey 2020
Fig. 5.2 The proportion of 193 UN member states that provide mobile apps or SMS updates in
sharing public information in various fields in 2018 and 2020.18 Data Source UN E-Government
Survey 2020
Fig. 5.3 Basic, higher and advanced functions provided by national E-Government portals in line
with national income level. Data Source UN E-Government Survey 2020
5.2.5 Digital Integration and Participation
According to UN E-Government Survey 2020, various countries in the world play

an active role in providing online services for the vulnerable groups. Since 2018,
the number of countries that provide online information and services dedicated to
18 Note: Since the “Judicature” index is a newly-added evaluation index in 2020, comparable data
in 2018 is unavailable.
Fig. 5.4 The number of Countries that provide online services for the vulnerable groups in 2016,
2018 and 2020. Data Source UN E-Government Survey 2020
the vulnerable groups has increased by c. 11%, including services for young people
(156 countries), women (151 countries), immigrants (148 countries), the elderly (148
countries), the disabled (137 countries) and the poor (130 countries) (see Fig. 5.4).
The fastest-growing service is online service for the elderly and immigrants, with
an increase of 14%. The faster-growing service is online service for women, with
an increase of 11%. However, few countries provide services for the poor and the
disabled. Figure 5.4 shows the number of countries that provide online services for
the vulnerable groups in 2016, 2018 and 2020.
The elderly plays an important role in a community. In Singapore, government
launches the “Silver Infocomm Initiative” and develops comprehensive curriculum
including learning materials and practical applications, so as to integrate the elderly
into digital community and bridge digital divide.19
New York City starts ASL Direct, a video-call system for the disabled, which
allows the deaf or people with hearing handicap to communicate with experts profi-
cient in sign language from the Office of the Mayor of NYC for the Disabled by
using webcams, giving them direct access to urban services and information.20
In the world, E-Government services that target gender differences progress to
varying degree. For example, the City Government of Vienna has implemented more
than 60 urban plans that focus on gender differences, hoping to provide safer and
more comfortable E-Government services in the fields of work, education, culture
and leisure.21
19 Data Source: https://www2.imda.gov.sg/.

20 Data Source: https://www1.nyc.gov/site/mopd/initiatives/asl-direct.page.
21 Data Source: https://www.wien.gv.at/english/administration/gendermainstreaming/examples/.
Global immigrant and refugee crisis is a pressing challenge for many countries
and cities, and E-Government plays a prominent role in assisting refugees in accom-
modation. Hamburg (Germany) launches “Location Search Project” to make the
refugees in the city as evenly distributed as possible with a collaborative system, so
as to ensure that the needs of residents and refugees can be met in urban planning,
construction, real estate development, data analysis, logistics and human dynamics.22
Public participation embodies digital literacy of the public. With the development
of E-Government, more citizens obtain the opportunity to participate in govern-
mental decision-making via online platforms. According to The 15th International
Digital Government Rankings Report (2020) released by Waseda University, Canada,
Denmark, Singapore, the United States and Estonia tie for the first place in “public
participation” index. UN E-Government Survey 2020 evaluates the e-participation
index in 13 dimensions, e.g. providing online information (related to policies and
budgets) in the fields of education, health, social security, employment, environ-
ment and justice, providing online public procurement notices and bidding results,
and providing online descriptions of e-participation of policies/tasks. Among them,
Estonia, South Korea, the United States and Japan tie for the first place with full
scores, which signifies that these countries and regions have all the characteristics
of e-participation. Japan and New Zealand both rank the 4th in score, and Austria,
Singapore and the United Kingdom of Great Britain and Northern Ireland rank the
6th in score.
Presently, e-participation mechanism can be basically divided into various forms,
such as public feedback and appeal, consultation, citizen initiatives and petitions,
Idea Forum and participatory budget. South Korea’s participatory budget platform
integrates the budget drafts of the central government and local governments. Citi-
zens can not only participate in the screening, sequencing and discussion of drafts,
but also put forward their own proposals.23 Estonian citizens can write and discuss
proposals and write and send digitally-signed group speeches to the parliament on
rahvaalgatus.ee, a citizens’ initiative portal. Bogota, capital of Colombia, makes full
use of e-participation to launch anti-corruption activities. Citizens in Bogota can
report possible corruption and inquire about the dynamics of relevant complaints
anonymously via Bogotá te escucha (Bogota Listens to Your Voice) Platform.24
5.2.6 Data Security and Privacy
Data security and privacy plays a vital role in the strategy of digital transformation.
With advances in information technology like big data and AI, privacy protection
22 Data Source: E. Al Nuaimi and others, “Applications of big data to smart cities”, Journal of
Internet Services.
23 Data Source: https://www.mybudget.go.kr/systemIntrcn/systemIntrcnMain.
24 Data Source: Alcaldía Mayor de Bogotá, Servicio a la Ciudadanía. https://bogota.gov.co/sdqs/.
5.3 Innovative Practice of Digital Government in the Outbreak … 131
becomes increasingly important. In Network Readiness Index 2020, 25% of coun-

tries perform well in the dimensions of trust and security, which demonstrates that
trust and security are important distinguishing dimensions.25 Legislation functions
as an important means to protect network data and privacy. Countries all strengthen
legislation to protect data security and privacy. For example, in May 2018, the Euro-
pean Union promulgated and effectuated General Data Protection Regulation. In
June 2018, the State of California of the United States released California Consumer
Privacy Act (CCPA), known as the “the most rigid and comprehensive personal
privacy protection act” in the United States. CCPA came into effect on January 1,
2020. In 2015, Japan substantially revised the Act on the Protection of Personal
Information (APPI) promulgated in 2005, and in June 2020, Japan formulated the
Amendments to the APPI to further strengthen the protection of personal data and
clarify the obligations of enterprises and non-profit organizations that collect and
process personal information.26
Now, in a large number of countries, citizens and enterprises cannot instantly
obtain all the personal information about them that governments have acquired on
governmental portals, or cannot decide who should be allowed to view the infor-
mation and how to use it. As UN E-Government Survey 2020 indicates, among
the regions that allow individuals to access their own data recorded by governments,
European countries take up the highest percentage (81.4%) and African countries take
up the lowest percentage (only 24.1%). In the report released by Waseda University,
South Korea adopted laws and regulations like the Personal Information Protection
Act to protect data security and scored full marks in relevant indexes.
Figures 5.5 and 5.6 show the percentages of countries that allow individuals and
enterprises to access or obtain data from their governmental records, respectively.
5.3 Innovative Practice of Digital Government

in the Outbreak of the COVID-19 Pandemic
With the wide application of big data, blockchain, AI and other technologies, the prac-
tice of digital government continues to be innovated, the construction of national-level
integrated-information-service platforms continues to be strengthened, the functions
of local E-Government services continue to be improved, and mobile-terminal-based
interactive application services continue to be expanded. In 2020, the outbreak of
the COVID-19 pandemic meant a heavy blow to traditional governance models and
raised higher requirements for remote services provided by digital government. On
the one hand, the requirements for the prevention and control of the pandemic, such as
large-scale screening and social-distance monitoring, rest on the application of digital
25 Data Source: https://networkreadinessindex.org/wp-content/uploads/2020/11/NRI-2020-V8_

28-11-2020.pdf.
26 Data Source: https://fpf.org/blog/a-new-era-for-japanese-data-protection-2020-amendments-to-
the-appi/.
Fig. 5.5 The percentage of Countries that allow individuals to access data from their governmental
records. Data Source UN E-Government Survey 2020
Fig. 5.6 The percentage of Countries that allow enterprises to access data from their governmental
records. Data Source UN E-Government Survey 2020
and intelligent means. On the other hand, digital services can improve service effi-
ciency and effectively reduce crowd aggregation and contact. To combat the COVID-
19 pandemic, various countries continuously experiment new methods and measures
in relation to digital services, and further deepen the innovative practice of digital
government. Section 5.3 summarizes new trends of innovative digital government in
various countries in recent years, and analyzes new update and upgrading of original
technologies and practices in the combat against the pandemic, so as to represent the
innovative practice of digital government in a systematic and comprehensive way.
5.3.1 From Integrated Platform Information Disclosure

to Multi-platform Information Sharing
To voluntarily share information and government data with the public via the
portal platform proves conducive to establishing effective, responsible and inclu-
sive government institutions, promoting the convenience of service management,
improving the transparency of public sectors, and strengthening the construction
of accountability. As UN E-Government Survey 2020 suggests, in 2020, 80%-90%
of UN member states provided the public with policies and project information on
specific industries. Besides, many countries and regions often disclose governmental
expenditures and budgets to the public. Singapore provides a one-stop governmental
portal (Gov.sg), via which citizens can access other special websites concerning
services for e-participation, e-service, open data and public procurement. Australian
Central E-Government Portal is a collection of more than 900 Australian govern-
mental websites. Government.se, Swedish official national portal, which is connected
with portal services hosted by other ministries and commissions of Sweden, provides
a wide range of data sets and information through OGD (open government data)
portals to ensure the accessibility of public service data and the transparency of
information. Government-data-service portal in Shanghai (China) is one of the most
successful local projects that provide one-stop public services.
In the combat against the pandemic, the demand for accurate, practical and timely
information provided by governments soared, and information sharing reached an
unprecedented level. In the outbreak of the COVID-19 pandemic, governments and
citizens in various countries were tied by using digital technologies and sharing
information or providing online services. On the one hand, citizens could use digital
technologies to obtain “action permits” through SMS, online apps or platforms to
help governments implement quarantine and other prevention and control measures.
Simultaneously, governments in various countries could use digital technologies to
make prompt decisions on the basis of real-time data and related analytical results,
improve national-local coordinated capabilities, and better coordinate and deploy
health resources. UN E-Government Survey 2020 investigated the official websites
of 193 UN member states, indicating that by March 2020, only 57% (110 countries)
had released incomplete information on the COVID-19 pandemic; by April 2020,
around 86% (167 countries) had provided related information on the COVID-19
pandemic; by May 2020, c. 97.5% (188 countries) had released information on the
COVID-19 pandemic on their official websites.
In the COVID-19 pandemic, various countries took more measures in informa-
tion sharing in addition to traditional information publicity, which could be roughly
categorized into three types, i.e. providing information, monitoring and establishing
special COVID-19-pandemic portal platforms. For example, in the pandemic, the
demand for medical supplies and resources increased significantly, which required
digital government to display better coordination and more transparency. In Brazil
and Kyrgyzstan, local governments provided real-time information on resource short-
ages to central governments via websites. Turkish government provided masks to
citizens for free by its E-Government portal. In Croatia, “Andrija”, a digital assis-
tant, used AI to process thousands of health requests through governmental portals
and social media.
5.3.2 From Basic Services of Mobile Applications to Data

Monitoring Based on User’s Willingness
As UN E-Government Survey 2020 evinces, almost all urban portals can be accessed
via mobile devices. This confirms that governments attach importance to multi-
channel services or functions provided by mobile technologies, yet most of them
only have basic services or functions like information publishing. As the COVID-19
pandemic spreads rapidly in the world, local prevention and control of the pandemic
calls for more efforts in various countries. Digital technology that can be employed to
develop contact-tracking apps enables governmental health authorities and citizens
to understand the infected cases and track the contacts of infected people to detect
the virus. As citizens’ personal belongings, mobile devices were endowed with new
important functions in the pandemic, e.g. positioning, contact locking, social-distance
monitoring, etc.
In the pandemic, apps that many countries and regions under lockdown originally
used aimed to obtain licenses to restrict unnecessary activities of individuals. For
example, in Malaysia, the QR code generated by Gerak Malaysia (a mobile app) can
be used as a digital license for inter-state travel and other types of travel. Brazil’s
“Contact Tracking Program” used AI algorithm for online consultation, artificial
voice for screening, and chat-robot app to help citizens remotely evaluate whether
they belonged to the risky group, and then screened suspected cases for the COVID-
19.
In view of the sensitivity of private data, most apps developed in European coun-
tries allow users to voluntarily participate, agreeing to share their contact data and
geographic location information in line with General Data Protection Regulation. For
example, “StopCorona”, an Austrian app, allows anonymous digital “handshakes”
(active storage of contacts) between mobile phones. If users are infected, anonymous
warnings will be sent to whoever they have contacted. In Estonia, “StopCorona” per
se is grounded in vehicular radio on a given device, transmitting anonymous IDs via
short-range Bluetooth and analyzing the IDs that the individuals contacted in the past
14 days. Many countries and regions, e.g. Armenia and Ukraine, have passed laws
to allow mobile operators to share geographical-location information of COVID-19
patients with the authorities to monitor whether the patients obey self-isolation and
send nucleic-acid-testing requests to their contacts.
5.3.3 From Technological Plug-Ins to Multi-scene

Applications of Smart Tools
With the application of emerging technologies, especially AI technology, the effi-

ciency of traditional public services continues to improve. As early as 2017, Dubai
Electricity and Water Authority (DEWA) introduced Rammas,27 an online chat robot
that could communicate with customers. Rammas can answer users’ questions in
Arabic and English. DEWA also boasts the first governmental agency in Dubai to
use AI to interact with customers in a direct and real-time way.
In the COVID-19 pandemic, in order to reduce the infection risk among public-
service personnel and narrow the gap in artificial services, providing “contactless”
services became a general trend. Governments of various countries further applied
emerging technologies in the work of the prevention and control of the pandemic,
electronic diagnosis and so on, to continuously raise service efficiency. To ensure
safe social distance, many governments used robots, unmanned aerial vehicles, self-
service temperature scanners, non-contact infrared thermometers and other apps to
monitor social distance. Qatari government deployed Al-Asas security robot, which
could patrol residential and public areas to propagate the importance of preventing
assemblies and limiting the spread of the virus among communities. Singaporean
government developed aluminum-powered thermal scanner “SPOTON”, established
a large-scale temperature screening system, used Long Wavelength Infrared (LWIR)
camera modules integrated with RGB cameras, and gradually deployed them to
governmental buildings and community facilities. Additionally, Singapore deployed
a new automatic temperature-screening platform to optimize the existent thermal
system and improve the speed of non-contact scanning, which saved time and
manpower. Indonesia introduced ITS-Airlangga (RASA), a robot medical assistant,
to minify the contact between medical staff and COVID-19 patients as well as the
consumption of personal protective equipment (PPE). ITS-Airlangga could transport
drugs, patient’s clothes and food and other items that weighed 50 kg to the ward,
and use multimedia to monitor two-way communication between medical staff and
patients.
27Data Source: Dubai Electricity and Water Authority website (https://www.dewa.gov.ae/en/about-

us/dewa-digital-journey/rammas); the Rammas chatbot is available at. https://www.dewa.gov.ae/en/
rammas.
Many countries reduced the risk of infection that resulted from personal contact
by encouraging people to purchase digitally. For example, Kuwait started a food
purchase and reservation system to regulate the food purchase of cooperatives.
Kyrgyzstan designed a special website for citizens in need of food aid, by which
citizens could apply for food aid remotely and ask for it to be sent home. In Portugal,
Citizen Map, a site app, provides useful geographical information for public services
and allows users to obtain digital queue tickets for on-site public services.
Fijian government implemented real-time digital monitoring and timely processed
the data of the COVID-19 pandemic for early detection, e.g. establishing health care
facilities and laboratories in the peripheral areas. Iran developed a portal mobile app
for users who wanted to conduct electronic self-evaluation. Risks were evaluated
by assigning color codes: black status (90% chance of infection), red status (phys-
ical examination needed), yellow status (home care and self-isolation needed), pink
status (groups with underlying diseases) and green status (low risk). Iranian govern-
ment used the information to locate and disinfect high-risk groups in cities, furnish
them with immediate care, transfer infected people to hospitals, provide home-care
services, and receive complaints about public services.
Meanwhile, limited by the quantity of medical staff and the quality of treatment
in hospitals, many governments developed various portals, chat robots and apps to
provide citizens with tools that could automatically evaluate citizens’ health status
and to enable doctors to remotely monitor the health status of patients. In a way,
the COVID-19 pandemic accelerated the governmental deployment of innovative e-
medical solutions, including e-health service, the supply of medical supplies, virtual
doctor, self-evaluation of health status and remote patient monitoring. For example,
FluGoWhere, a Singaporean platform, could search out public clinics that provided
special subsidies for those diagnosed with respiratory diseases. In the United Arab
Emirates, people could use “iMAP Health Facility Locator” app to locate newly-
launched COVID-19 screening centers.
5.4 New Trends in the Construction of Digital Government
After the outbreak of the COVID-19 pandemic, isolation and quarantine restrict
the normal operation of many socioeconomic activities, and E-Government faces a
stress-tolerance test. On condition that face-to-face interaction becomes inconvenient
and impossible, digital-government solutions prove more important. Various coun-
tries continue to build effective multi-functional E-Government systems to provide
the public, local authorities and medical workers with clear and latest information.
Simultaneously, various countries cooperate with platform providers and other stake-
holders and make outstanding contributions to the prevention and control of the
COVID-19 pandemic. In brief, the construction of digital government presents a
series of new trends.
5.4 New Trends in the Construction of Digital Government 137
5.4.1 Regional Cooperation Further Deepens
Regional cooperation serves as a robust support throughout the construction of

digital government in various regions. In Europe, since 2016, all governments in
Northern Europe have promoted the cooperation in Smart Government and high-
lighted cross-border projects, data flow and commercial-data exchanges. Carried
out from 2021 to 2027, “Digital Europe Programme” becomes the “first funded
programme dedicated to supporting digital transformation” in the European Union.
In 2013, Transform Africa Summit proposed “Smart Africa Initiative”,28 which
was committed to building generally affordable ICT infrastructure and services
for African countries, such as broadband connectivity. In the meantime, Trans-
form Africa Summit adopted “Policy and Regulation Initiative for Digital Africa”
(PRIDA). As a guarantee of Digital Africa, PRIDA included African Union, the
European Union and International Telecommunication Union. In Latin America,
Network of E-Government Leaders of Latin America and the Caribbean (RED
GEALC) was established in 2003, which gathered major participants in the develop-
ment of E-Government in Latin America and promoted the horizontal cooperation
and professional-knowledge exchanges among countries in Latin America. In 2018,
at RED GEALC Annual Meeting, 16 Latin American countries and six Caribbean
countries jointly signed Declaration of Panama to further advance E-Government
cooperation among relevant public officials in the region.
The outbreak of the COVID-19 pandemic in 2020 touches off a crisis in medical
care and health. More importantly, it causes regional and global socioeconomic crisis
that calls for collaborative response. Under such circumstances, regional cooperation
in E-Government further deepens, and initiatives related to regional digital coopera-
tion emerge in the fields of data connectivity, data governance, e-learning, technolog-
ical resilience and digital public-service delivery.29 The Organization of American
States (OAS) develops a Virtual Platform of Emergency and Security Systems (ESS)
to help regions and countries operate ESS. The United Nations Regional Economic
and Social Commission, the European Union, Inter-American Development Bank
and other multi-level regional cooperation entities play an active role in the course
to further support the development and cooperation of E-Government among the
member states of regional organizations.
5.4.2 Local Governments Become E-Government Entities

that Play a More Active Role
In the past, the development of E-Government mainly targeted the transformation of

digital government at the national level. As UN E-Government Survey 2020 unveils,
28 Data Source: http://smartafrica.org/new/wp-content/uploads/2019/01/smart_africa_manifesto_

2013_-_english_version.pdf.
29 Data Source: UN E-Government Survey 2020.
the development of local E-Government in various countries remains at a low level,

and most urban portals only provide basic functions like information sharing, with
inadequate information services. In recent years, local E-Government displays a
trend of vigorous development. For example, municipal government of Casablanca,
Morocco, launched a new-version portal to provide citizens with more dynamic
digital content. It also developed a municipal portal called “Casa Store”30 to ener-
getically promote users’ participation in providing specific types of information and
services.
Local governments of various countries actively build “smart cities”, and use
advanced technologies to promote sustainable development and help government
realize digital transformation. For example, AI technology is used to improve service
delivery and simplify internal labor management, big data and analytical technology
are utilized to make efficient decisions and optimize urban public resources, and
IoT is used to support intelligent applications in medical care, transportation, law
enforcement and emergency. Besides, local governments of various countries adopt
new digital applications to settle refugees, alleviate traffic congestion, treat solid
waste and reduce air pollution.
In the COVID-19 pandemic, urban and municipal management departments
interact with citizens in a more direct way and take responsibility for solving prob-
lems that affect citizen’s daily life. As E-Government entities, local governments
embody prominent flexibility and vitality. Many cities utilize the infrastructure of
original smart cities to flexibly cope with the COVID-19 pandemic. For example,
London measures the distance between pedestrians by means of cameras, sensors
and AI algorithms commonly used to control traffic, and monitors whether citizens
keep social distance. Many cities in China introduce Health QR Code service. After
verifying declared personal information, local governments issue QR Code elec-
tronic certificates with different colors to evaluate personal health status, and restrict
or permit citizens’ travel in public areas in the outbreak of the COVID-19 pandemic.
5.4.3 “Personal Information Protection” Becomes a New

Domain that Plays an Increasingly Important Role
In the era of big data, personal information protection forms an integral part of citi-
zens’ rights and interests. Various countries standardize network-data security, data
transaction, information protection and other fields by legislative means. In May
2020, the Ministry of Communications and Information (MCI) and the Personal Data
Protection Commission (PDPC) of Singapore jointly released the draft of Personal
Data Protection Act (Revised), which proposed to hold accountable for the improper
handling of personal data kept by individuals, organizations or public institutions.
The cases included knowingly or deliberately disclosing other’s data without autho-
rization, knowingly or deliberately using others’ data for profit or infringing others’
30 Data Source: Ville de Casablanca (http://www.casastore.ma).

5.4 New Trends in the Construction of Digital Government 139
interests, and knowingly or deliberately identifying individual identity again from

anonymous data without authorization. The legal framework of E-Government in
South Korea places emphasis on the protection of personal data and information,
digital security and digital identity. In 2017, South Korea published Digital Signa-
ture Act. The legal framework of E-Government in Japan focuses on personal digital
security and access to digital data. Relevant laws include Act on the Protection of
Personal Information, Act on Electronic Signatures and Certification Business, Act
on Access to Information Held by Administrative Organs and Act on Access to Infor-
mation Held by Juridical Persons and Administrative Organs. In 2017, the United
Kingdom launched Government Transformation Strategy 2017 to 2020 that centered
on citizens, so as to ensure that all British citizens could access E-Government
services with personalized digital identity. The United Kingdom also adopted The
Data Protection Act 2018. The legal system of personal information protection in
China continuously improves. The promulgation and implementation of The Civil
Code of the People’s Republic of China and the deliberation and approval of The
Personal Information Protection Law of the People’s Republic of China provide
powerful legal support for personal information protection.
In various countries, management and policy-related priorities in digital trans-
formation differ. As UN E-Government Survey 2020 affirms, among 47 surveyed
Asian countries, 87% have enacted laws concerning electronic transactions, 79%
have enacted regulations concerning combating cybercrimes, yet only 57% have
enacted privacy laws.
Generally speaking, in the early stage of the COVID-19 pandemic, digital govern-
ment played a prominent role in “response and prevention and control”. Governments
shared information accurately and timely through online portals, social media and
other platforms, and promoted e-participation and guided two-way communication
between people through online inquiry. In the future, “recovery” and “reshaping”
will become new themes, and governments should further establish effective multi-
stakeholder partnership at regional, national and local levels. Governments need
to provide technological education for the vulnerable groups in society, improve
their information literacy and bridge digital divide. Besides, governments need to
investigate the legislation on data and privacy protection, sum up experiences and
lessons, and provide more financial and technological support to local governments
in digitalization, so that local governments can enjoy more service benefits from
digitalization.
Chapter 6
World Internet Media Development
6.1 Outline
After 2020, the COVID-19 pandemic that engulfed the entire world continues to
affect the development of human society. The COVID-19 pandemic signals a signifi-
cant turn for human history. Against such a backdrop, a series of far-reaching changes
have taken place in the field of global Internet. With regard to Internet media, public
opinion produces countless hot topics. In particular, hot topics like the “Centenary of
the Communist Party of China”, “carbon neutrality” and “China example of poverty
alleviation and governance” attract global attention in Internet. Internet media tech-
nology continues to evolve iteratively. New digital-media forms like audio social
networking and online conferences boost the development of global cloud intercon-
nectivity. Globally, the regulation on Internet media has tightened up, with increasing
attention to emerging issues in the era of intelligent communication like algorithmic
discrimination. In the COVID-19 pandemic, the remarkable decline of the traditional
film and television industry forms a sharp contrast to the rapid growth of streaming
media, which necessitates the transformation of film and television industry into
streaming media. These new trends have an impact on global Internet culture, ecology
and technology and function as a factor that we need to take into account in probing
into world Internet media development in 2021.
6.2 The Development Landscape of World Internet Media
The COVID-19 pandemic means a “cold winter” for traditional manufacturing and
service industries. Nevertheless, the advent of 2021 saw the rarely-seen against-
headwinds growth of global Internet media industry owing to the advantage of cloud
connection. On the one hand, traditional Internet corporations like Facebook, Google
and Amazon promptly seized the opportunity to enlarge their online market share

https://doi.org/10.1007/978-981-19-9323-7_6
142 6 World Internet Media Development
and achieved against-headwinds growth. On the other hand, emerging digital media
like TikTok and Zoom made crises into advantages and turned the tide in mature
markets by various means.
6.2.1 Traditional Social Media Platforms
As Pew Research Center reports, Facebook serves as main public space for American
users to discuss topics in relation to the COVID-19 pandemic.1 36% of Americans
regularly view news on Facebook, with the numbers of Americans who view news on
YouTube (23%) and Twitter (15%) ranking the 2nd and 3rd respectively.2 By the end
of 2020, the number of Facebook users in the world had totaled 1.9 billion, with an
increase of 8.7% year on year. New users from the-third-world countries presented the
most eye-catching performance in 2020, with enormous growth potential. Facebook
users in the Middle East and Africa and the Asia–Pacific Region increased by 13.6%
and 10.7% respectively. India boasted the largest number of Facebook users in the
world, and Nigeria, Egypt and South Africa saw the fastest growth rate of Facebook
users. Meanwhile, the spread of the COVID-19 pandemic curbed the downward
trend in the number of Facebook users in North America, Western Europe and other
regions. By the end of 2020, the number of countries with net loss of Facebook users
had decreased from 9 in 2019 to 4.3 The growth in the number of users synchronously
spurred a substantial rise in Facebook’s annual revenue, which reached 86 billion
U.S. dollars by the end of 2020, up c. 21.6% on a year-on-year basis.4
By dint of the strong market demand for online advertising and the excellent
performance of Google’s cloud business in 2020, Alphabet, a parent company of
Google, realized robust growth in business. In the first quarter of 2020, Alphabet
achieved a year-on-year growth of 34% in business revenue, which reached 55.31
billion U.S. dollars, with an over-100% increase in net profit.5 The YouTube platform,
a subordinate of Alphabet, generated an advertising revenue of 6 billion U.S. dollars,
up 49% on a year-on-year basis.
In the COVID-19 pandemic, people’s demand for teleworking and online shop-
ping contributed to the growth in Amazon’s sales by leaps and bounds. In the first
quarter of 2021, Amazon’s sales rose by 44% year on year and reached 108.5 billion
1 Data Source: Pew Research Center, https://www.journalism.org/2020/06/24/posts-about-covid-

19-appeared-in-a-wide-range-of-public-facebook-spaces/.
2 Data Source: Pew Research Center, https://www.journalism.org/2021/01/12/news-use-across-soc
ial-media-platforms-in-2020/.
3 Data Source: Emarketer’s research report, https://www.emarketer.com/content/global-facebook-
users-2020.
4 Data Source: Statista (A statistical website), https://www.statista.com/statistics/268604/annual-
revenue-of-facebook/.
5 Data Source: A report from The New York Times, https://www.nytimes.com/live/2021/04/27/bus
iness/stock-market-today.
6.3 Hot Topics in World Internet Media 143
U.S. dollars. With fully-developed digital-integration platforms and excellent supply-

chain management capability, Amazon immediately responded to users’ needs in
the COVID-19 pandemic. Simultaneously, Amazon took the initiative in developing
Amazon Web Services for network storage business to consolidate its competitive-
ness in cloud computing business. In 2020, the business revenue of AWS account for
30% of Amazon’s total revenue, making an outstanding contribution to its annual
business development.6
6.2.2 Emerging Digital Media Platforms
As one of the most popular short-video social-media apps in the world, TikTok has
been widely used in recent years (2019–2021), which has weakened the long-standing
dominance of Facebook in the field of social media in downloads.7 In the first quarter
of 2021, TikTok ranked the 1st in The List of Global App Downloads, maintaining
the momentum of sustainable growth in downloads in 2020. In the United States,
in spite of the fact that 62% of TikTok’s users are aged 10–29, the growth rate of
its users over 30 years old keep increasing.8 TikTok has not only altered the way
in which young people entertain themselves, but also provided a platform for racial
groups at various ages and from various classes to express and speak.9 Particularly,
in June 2021, U.S. President Biden announced to rescind the ban on TikTok during
the Trump administration, which mitigated the pressure on TikTok’s sustainability
in the U.S. market.
The COVID-19 pandemic touches off more demand for online connections. In
2020, Zoom achieved an explosive growth in an unprecedented way, whose sales
soared to 2.6 billion U.S. dollars (up 326%) and profit jumped from 27.1 million
U.S. dollars to 671.5 million U.S. dollars over 2019.10
6.3 Hot Topics in World Internet Media
In 2021, hot topics in world Internet media featured diversified development. Specif-
ically, there were two hot fields. On the one hand, hot topics centered on China’s
contribution to environmental protection and global poverty alleviation, the grand
celebration of the “Centenary of the Communist Party of China” as well as “carbon
6 Data Source: A report from Forbes, https://www.forbes.com/sites/shelleykohan/2021/02/02/ama

zons-net-profit-soars-84-with-sales-hitting-386-billion/?sh=30b07a5f1334.
7 Data Source: Business of Apps, https://www.businessofapps.com/data/tik-tok-statistics/.
8 Data Source: Oberlo Website, https://www.oberlo.com/blog/tiktok-statistics.
9 Data Source: A report from The New York Times, https://www.nytimes.com/2020/12/31/style/tik
tok-trends-2020.html.
10 Data Source: A report from BBC, https://www.bbc.com/news/business-56247489.
neutrality” and “targeted poverty alleviation” proposed by Chinese government,

which kindled positive reaction and heated discussion among global public opinion.
On the other hand, the discussion on the COVID-19 pandemic turned to the trend of
“vaccine nationalism”. Global public health security systems remained unstable and
formed new media crisis mingled with extremist nationalism.
6.3.1 The “Centenary of the Communist Party of China”

Arouses Media Attention Worldwide
On July 1, 2021, Chinese President Xi Jinping, also General Secretary of the Commu-
nist Party of China Central Committee and Chairman of the Central Military Commis-
sion, delivered an important speech at the celebration ceremony of the “Centenary
of the Communist Party of China”. The significant topic received wide attention
and evoked extensive discussion among Internet media and social media around the
world.
Overseas Internet media were highly attentive to the thriving scenes as displayed
at the celebration ceremony of the “Centenary of the Communist Party of China”.
The Guardian released a special report with large-scale photos on its official website
and represented the solemn occasion of the celebration in a multi-dimensional way,
stating that: “Since its birth in Shanghai in 1921, the Communist Party of China
has become one of the most powerful political parties in the world.” CNN (Cable
News Network) of the United States particularized major events in one hundred
years since the founding of the Communist Party of China in the topic form with
a multimedia approach, and highlighted the on-site scenes of “July 1 Theatrical
Performance”. In an article entitled “In Beijing, Pride and Hopes for a Stronger
China on Party Centenary”, Reuters held the view that ordinary Chinese people
generally expressed their pride in China’s rapid development and good wishes for
the future when interviewed, which proved the support and recognition of Chinese
people for the leadership of the Communist Party of China.
In Internet, international public opinion paid close attention to the celebration cere-
mony of the “Centenary of the Communist Party of China”. International media fully
acknowledged great achievements of the Communist Party of China in leading the
Chinese nation to realize national independence and building a new China, and fore-
grounded the irreplaceable role of the Communist Party of China in the development
course of modern China, which demonstrated the important role of the Communist
Party of China in the world.
6.3.2 “Carbon Neutrality” Becomes a Central Issue in World

Internet Media
At the 75th Session of the United Nations General Assembly that was convened in
September 2020, China make the commitments of “Emission Peak” and “Carbon
Neutrality”, which attracted widespread attention from global news media and envi-
ronmental protection organizations. Chinese government promised that before 2030,
China’s carbon dioxide emissions would peak, and before 2060, China would achieve
zero emissions by means of afforestation and energy conservation and emission
reduction, which could offset carbon dioxide emissions made in one sector by
reducing them somewhere else.
As overseas media observe, the idea of “Carbon Neutrality” will accelerate China’s
transformation of the economic development mode to high-quality development. The
New York Times of the United States considers that China’s declaration has close ties
with China’s policy-related documents like National 14th Five-Year Plan.11 In BBC
(British Broadcasting Corporation) news, it is stated that China’s solemn promise
of “Carbon Neutrality” has a positive effect on mitigating the climate crisis. Forbes,
an American business magazine, notes that China’s vision and action of “Carbon
Neutrality” enables it to achieve an economic growth by over 15% by 2030, to ensure
an utilization rate of clean energy of 62% and to reduce energy consumption and
expenditure by 11%,12 which ultimately actualizes technological progress related
to energy “development, utilization and reproduction” and the construction of an
environment-friendly society. Boston Consulting Group (BCG) also writes an article,
suggesting that China’s goal of “Carbon Neutrality” will limit the rise of global
temperature by less than 1.5°C, which not only helps to realize China’s sustainable
development, but also plays a leading role in demonstrating and promoting the rise
of global governance effects.13
6.3.3 “China Example of Poverty Alleviation

and Governance” Evokes Worldwide Concern
in the Public Opinion on the Internet
In 2021, China attained a complete victory in the fight against poverty. The final
98.99 million impoverished rural residents living under the current poverty line were
lifted out of poverty. All the 832 impoverished counties and 128,000 villages were
11 Data Source: A news report from The New York Times, https://www.nytimes.com/2020/09/23/
world/asia/china-climate-change.html.
12 Data Source: The website of Forbes, https://www.forbes.com/sites/energyinnovation/2021/03/
08/chinas-carbon-neutral-opportunity-economic-growth-driven-by-ambitious-climate-action/?sh=
300c9002734d.
13 Data Source: The website of BCG, https://www.bcg.com/publications/2020/how-china-can-ach
ieve-carbon-neutrality-by-2060.
removed from the poverty list. The feat forges “China Example of Poverty Allevi-
ation and Governance” and makes a significant contribution to the cause of global
poverty alleviation. On the one hand, China’s poverty alleviation is part of “the United
Nations Sustainable Development Goals 2030”. On the other hand, China provides
new solutions and new wisdom to poverty alleviation and social governance in other
countries and regions, especially the “Global South”. “China Example of Poverty
Alleviation and Governance” has received positive feedback from overseas Internet
media and think tanks.
Global Internet media mainly spotlight how China’s poverty alleviation plays an
exemplary role. Anadolu Agency of Türkiye remarks in an article that since 2012,
China has been committed to building a moderately prosperous society in all respects
in the new era, which removes economically-difficult population and poor areas from
the poverty list. Practically, China’s poverty alleviation demonstrates that “China
embarks on the right path”. Some leaders of developing countries also view China’s
poverty alleviation as an example to advance poverty alleviation worldwide. Imran
Khan, Pakistani Prime Minister, tweeted that he regards China as a model to combat
poverty.14
With regard to the mode of China’s poverty alleviation, Reuters stresses the coop-
erative relationship between Chinese Internet-platform corporations and Chinese
government on poverty alleviation and governance. For example, Internet corpo-
rations like Tencent play an important part in China’s poverty alleviation. Tencent
releases an investment-donation program with a total amount of 50 billion yuan,
which involves rural-revitalization projects and regional infrastructure construction
in China.15 Large Internet-platform corporations possess momentous economic value
in poverty alleviation and governance, which serve as a reference and model to
the transformation toward digital economy and the conversion of corporate social
benefits in other developing countries.
China’s poverty alleviation triggers extensive discussion on global Internet media
and attracts the attention of Western intellectuals and political elites. Brookings
Institution, an American think tank, points out that China attains a complete victory
in poverty alleviation, which means a change that combines the mobilization of social
resources with the pursuit of actual effects. Besides, “China Miracle” wins deep
credibility among international community. China’s poverty alleviation addresses
basic problems of food and clothing supplies and provides basic medical, housing
and educational security for Chinese people.16
China’s poverty alleviation produces positive comments on Internet media via
practical actions and achievements. On the one hand, China’s “targeted poverty allevi-
ation” makes remarkable achievements, which is widely recognized by international
14 Data Source: Anadolu Agency, https://www.aa.com.tr/en/asia-pacific/on-poverty-alleviation-

china-is-on-the-right-track/2066729.
15 Data Source: Reuters, https://www.reuters.com/business/sustainable-business/tencent-pledges-
77-bln-support-china-poverty-environment-initiatives-2021-04-19/.
16 Data Source: Brookings Institution, https://www.brookings.edu/blog/future-development/2021/
01/25/deep-sixing-poverty-in-china/.
community. On the other hand, China’s “targeted poverty alleviation” provides a

“Chinese model” for poverty alleviation in developing countries around the world,
which can draw on the experience of China.
6.3.4 The Conflict that Arises from “Vaccine Nationalism”

Becomes Prominent
In 2021, the core issue of the COVID-19 pandemic shifted from “cooperation against
the COVID-19” to “vaccine distribution”. A few Western countries fell into the trap
of “vaccine nationalism”, which remained in stark contrast to China’s extensive
assistance to developing countries on the vaccine issue and caused heated discussion
and debate among global Internet media.
Several international organizations published articles at social media like Face-
book and Twitter, revealing that “vaccine nationalism” signified that some Western
developed countries refused to export the COVID-19 vaccine stocks because they
provided them for domestic citizens by signing contracts with pharmaceutical compa-
nies. This “self-prioritization” stance resulted in the fact that the total number of
the COVID-19 vaccines reached 4.2 billion doses in high-income countries whilst
the number of the COVID-19 vaccines only reached 670 million doses in some
low-income countries. In addition to health risks and public health safety, the short-
sighted policy of “vaccine nationalism” exacerbated the global gap between the rich
and the poor. The World Bank asserted that the inconvenience of vaccination would
make life harder for more than 150 million poor population (with a daily income
of less than 1.9 U.S. dollars), and the global problem of extreme poverty would
come to rise for the first time in nearly 20 years.17 As the data of Our World in
Data suggest, the vaccination rates in various countries and regions in the world
were thrown out of balance.18 By June 2021, the vaccination rate (per 100 people) in
Germany, Italy, France and the United Kingdom had all exceeded 80%, yet a large
number of developing countries could hardly obtain enough COVID-19 vaccines.
Organization for Economic Co-operation and Development (OECD) stated on
Twitter that 75% of the vaccination worldwide was carried out in ten major countries.
Tedros Adhanom Ghebreyesus, WHO Director-General, called on all countries in the
world to unite, because only by achieving “vaccination equality” shall we withstand
and overcome the COVID-19 pandemic. China’s assistance to other countries with
the COVID-19 vaccines aroused heated discussions among various Internet media.
17 Data Source: Global Citizen, https://www.globalcitizen.org/en/content/what-is-vaccine-nation

alism/?utm_source=paidsearch&utm_medium=usgrant&utm_campaign=verizon&gclid=EAIaIQ
obChMI8JCMk-ak8AIVMG5vBB2SkQD9EAAYASAAEgLxmPD_BwE.
18 Data Source: Our World in Data, https://ourworldindata.org/covid-vaccinations.
Agencia EFE of Spain reported that by 2022, China’s exports of the COVID-19
vaccines would probably cover 40% countries and regions in the world.19 France 24,
a French TV station, also believed that China’s export assistance to Brazil, Indonesia,
the United Arab Emirates, Türkiye and other countries evidenced that China’s sense
of responsibility for actively participating in international affairs effectively enhanced
its national soft power, in contrast to Western countries that vied for the COVID-19
vaccines and cornered the market on the pretext of “nationalism”.20
6.4 The Governance and Regulation of World Internet

Media
Over the past year, various countries in the world have tightened up on the gover-
nance of antitrust related to Internet corporations. As Internet corporations like
Facebook, Google and Amazon have a greater impact on Internet economy, the
United States, the United Kingdom and Australia and France launch the antitrust
and regulation campaign against Internet media to varying degrees, which target
social media’s monopoly and exclusive market position, social media’s jockeying
for traffic with traditional journalism and social media’s algorithmic discrimination
and biased information push.
6.4.1 The Antitrust Regulation on Social Media is Upgraded
In the past two years, digital economy boomed owing to the outbreak of the COVID-
19 pandemic, which enhanced the monopolistic position of Internet corporations and
accelerated governmental antitrust regulation. In October 2020, the antitrust report
released by the Democratic Party of the U.S. House of Representatives indicated that
Google, Amazon, Apple and Facebook all possessed monopolistic power.21 In the
same month, the U.S. Department of Justice (DOJ) filed an antitrust lawsuit against
Google. In the beginning of 2021, Facebook also encountered the biggest regulatory
challenge since its founding, involved in double-litigation with the U.S. Federal Trade
Commission (FTC) and the attorneys-general of 48 states and regions in the United
States. FTC insisted that Facebook’s acquisitions of two corporations (i.e. Instagram
and WhatsApp) in 2012 and 2014 accorded with its “systematic strategy” that aimed
to maintain its monopoly in the field of mobile social media, requiring Facebook
to split these two platforms into independent corporations. In the 50-year history of
19 Data Source: Agencia EFE, https://www.efe.com/efe/english/portada/china-speeds-up-vaccine-

production-for-export-to-developing-countries/50000260-4472141.
20 Data Source: France 24, https://www.france24.com/en/asia-pacific/20210130-covid-19-as-the-
west-competes-for-vaccines-china-exports-jabs-and-expands-soft-power.
21 https://www.nytimes.com/2020/10/06/technology/congress-big-tech-monopoly-power.html.
6.4 The Governance and Regulation of World Internet Media 149
American business, such a large-scale antitrust lawsuit was rarely seen, except the
Antitrust Lawsuit of Microsoft and the Split and Reconstructing of AT&T (American
Telephone & Telegraph) in the late 1990s, two cases that stood comparison with the
Facebook case.
New proposals of the European Union and the United States clarify that antitrust
regulations ought to be updated and adapted to the digital era so as to keep pace with
new market trends. In October 2020, the U.S. House of Representatives Antitrust
Subcommittee released Investigation of Competition in Digital Markets. The report
disclosed the exclusive monopoly problem of four corporations (i.e. Google, Face-
book, Apple and Amazon) and proposed countermeasures on how to effectively
implement antitrust against social media in the future. In December 2020, the Euro-
pean Commission launched the drafts of Digital Services Act and Digital Markets
Act, which aimed to improve data-security protection and enhance consumers’ sense
of experience, e.g. supporting data portability, restricting cross products and bundle
products, and limiting the locking of default applications.22
Traditional antitrust cases concentrate on the fact that the lack of competition
impairs the interests of consumers in pricing. In the digital era, antitrust laws and
regulations take into account the harm to personal information and privacy done by
shared users and bundled products, in addition to traditional monopoly on prices
or options. In the early stage, Facebook and other platforms occupied a favorable
position in mobile social media market via mature market integration. Yet, whether
they had control over certain markets or not is a key factor to judge the nature of
monopoly.
6.4.2 The Scramble for Traffic Between Social-Media

Platforms and Traditional Journalism Intensifies
Given the reality of the platform-based turn, the era of digital news has profoundly re-
shaped old news-production process and production-marketing logic in mass media.
Besides, the original closed loop of “interview-writing-editing-comment” as well as
“production-consumption” has been fundamentally altered. Media pursue the deep
integration and flow benefit that include capital, technology and other elements,
which results in the Prosumer economic model in news based on digital platforms
typified by social media and We Media. In the Prosumer model, platform-based
media start to nibble at the audience traffic and advertising revenue of traditional
journalism, which intensifies the scramble for traffic between social-media platforms
and traditional journalism.
In recent years, various countries started to restrict social media like Facebook
from forwarding the content produced by traditional media for free. In February 2021,
Australia issued News Media and Digital Platforms Mandatory Bargaining Code,
22 Data Source: eMarketer, https://content-na1.emarketer.com/2021-predictions-3-efforts-worldw

ide-will-reimagine-form-antitrust-legislation-takes-digital-age.
which clearly prohibited social media like Facebook from forwarding traditional
media news without permission, and further aggravated the competition between
social media and traditional journalism for network traffic and advertising revenue in
the era of digital journalism. Facebook protested against the interference in Facebook
and its business partnerships that arose from the Code’s “unilateral coercion” and
the possible negative impact that came from “non-news content”.23
Google also struck back in the form of “twelve consecutive questions” on its
official blog website, including Google News Showcase’s “involuntary payment” in
Australia, and the Code’s doing harm to “Google search” as well as the spirit of the
Internet advertised by Google.24 It was noteworthy that Google was once in dispute
with publishers in EU member states in terms of traffic payment. In 2014, prior to
Spain’s New Copyright Law, Google chose to exclude all Spanish publishers from
“Google News” and shut down “Google News” service in Spain until the beginning
of 2021 when negotiation started.
The U.S. Consumer News and Business Channel (CNBC) observes that different
digital platforms will take different actions in response to news-charge regulations
in the same region, which therefore strengthens the competition between platforms
for traffic and advertising revenue. For example, Microsoft bluntly says that unlike
Google, it will support the latest Australian Code, which directly relates to the size
of their users in Australia. Microsoft’s Bing search engine accounts for only 3.6%
of the Australian market, while Google has 94.5% of Australian users.25 American
Broadcasting Company (ABC) notices that owing to Matthew Effect, some large
local media outlets may make profits, yet small press and publishing institutions will
totally lag behind. As current regulations can be carried out in a very flexible way,
large digital platforms like Google will retain the rights to screen or even block local
and regional news.26 Predictably, the scramble for traffic and advertising revenue
between social media and traditional news media will continue to heat up in various
countries and regions.
6.4.3 The Legal Regulation Against Algorithmic

Discrimination is Promoted
In recent years, the topic on the legal regulation against algorithmic discrimination
and ethical anomie continued. In 2019, the United States published Algorithmic
23 Data Source: The website of Facebook, https://about.fb.com/wp-content/uploads/2020/08/Fac

ebooks-response-to-Australias-proposed-News-Media-and-Digital-Platforms-Mandatory-Bargai
ning-Code.pdf.
24 Data Source: Google Blog, https://blog.google/around-the-globe/google-asia/australia/top-que
stions-news-code/.
25 Data Source: The website of CNBC, https://www.cnbc.com/2021/02/25/australia-passes-its-
news-media-bargaining-code.html.
26 Data Source: The website of ABC, https://www.abc.net.au/news/2021-02-24/news-media-bargai
ning-code-passes-parliament-facebook-ban/13186354.
6.5 Trends in the Technological Development of World Internet Media 151
Accountability Act of 2019. Since then, algorithmic regulation on digital platforms

has been upgraded progressively. According to the data of the U.S. National Confer-
ence of State Legislatures (NCSL), by April 2021, 16 states in the United States
(including State of Alabama) had enacted relevant laws to regulate AI technology
and algorithm.27 In April 2021, the European Union released Artificial Intelligence
Act to regulate algorithmic discrimination, big data-enabled price discrimination
against existing customers and algorithm-related deceptive information.
Lexology, an international legal news website, uncovers that previously, Europe
imposed fines of up to 30 million euros every year on digital-platform algorithms,
accounting for 6% of the total in the world. The latest algorithm-regulation law that
the European Union has launched helps to ease the trust crisis in the field of AI. The
law will effectively circumscribe illegal acts in two aspects: enterprises that develop
algorithms that do not have transparency or legitimacy; enterprises that use algo-
rithms to engage in illegal collection of personal information.28 Harvard Business
Review comments that in consideration of rigid regulatory legal restrictions on algo-
rithms, platforms that master algorithmic technology need to share the information
of algorithmic process appropriately and make the algorithm per se as transparent as
possible, so as to avoid legal sanctions.29
Michalsons, a legal consulting firm, publishes an article, which emphasizes that
Algorithmic Accountability Act of 2019 of the United States and a series of Euro-
pean acts will enable large Internet-platform corporations to avoid possible iden-
tity discrimination and ethical anomie when developing algorithmic services, and
that the whole society needs to better balance overall algorithmic benefits and indi-
vidual algorithmic losses. With respect to the future legal regulation on algorithms,
three rules must be considered. Firstly, the algorithmic system must be as free and
fair as possible. Secondly, the transparency and accountability of the algorithmic
system developed by individuals or corporations must be enhanced. Thirdly, the
legal regulation on algorithms must be based on principles rather than regulations.
6.5 Trends in the Technological Development of World

Internet Media
Presently, attempts are made to upgrade world Internet media at the technological
level. In the COVID-19 pandemic, cloud connection and online conferences become
the main trend. The rise of audio socializing represented by Clubhouse exemplifies
the potential power in the transformation and upgrading of social-media forms. No
27 Data Source: NCSL, https://www.ncsl.org/research/telecommunications-and-information-tec

hnology/2020-legislation-related-to-artificial-intelligence.aspx.
28 Data Source: Lexology, https://www.lexology.com/library/detail.aspx?g=a390880a-d8b5-47a0-
bf90-d91226ae5d26.
29 Data Source: Harvard Business Review, https://hbr.org/2021/04/algorithmic-nudges-dont-have-
to-be-unethical.
matter in traditional film and television industry severely buffeted by the COVID-19
pandemic or in thriving streaming-media film and television industry, the possibility
of market-content integration is experimented.
6.5.1 Online Conference Catalyzes the New Normal of Cloud

Connection
Zoom is an online audio and video conferencing software. Developed in 2011, Zoom
provides local services in 17 countries. By January 2021, Zoom’s fiscal-year revenue
had increased by more than 400% year on year, boasting one of the software with the
highest downloads in Asia, Europe and the United States in 2020.30 In June 2021,
the market value of Zoom exceeded 96 billion U.S. dollars. As an original cloud-end
platform based on cloud-end servers of Microsoft’s Azure and Amazon’s AWS, Zoom
provides users with more stable experience than traditional platforms like Skype and
Webex. In 2020, Zoom’s share price rose by more than 500%, ranking the 1st in
the growth of technology stocks in American stock market. Since its start in early
2020, Tencent Meeting has been staged in more than 100 countries and regions in
the world, with over 100 million users in less than a year. As users gradually adapt to
cloud-connection-based working style, the scale of global online conference market
will double to 10.092 billion U.S. dollars and maintain a CAGR of 9.8% by 2026,
as estimated.31
According to a UNESCO survey, the COVID-19 pandemic severely interfered
with the normal teaching order of schools in the world, and 91% of the total number
of students in the world had to choose to suspend classes or study online in the
worst time.32 In March 2020, UNESCO launched Global Education Coalition to
address the problems that existed in the resumption of educational systems. In the
COVID-19 pandemic, Zoom and Tencent Meeting successively joined Global Educa-
tion Coalition and provided free online communication services for more than 1.2
billion students in the world, helping to hedge against the impact of the pandemic on
teaching. The application of cloud video improves online education and furnishes
online teaching with low-cost and high-efficiency services. Under such circum-
stances, the scale of global online education market will grow at a CAGR of 14.6%
from 2020 to 2026, and will realize 37.43 billion U.S. dollars in 2026.33
30 Data Source: Sensor Tower, https://content-na1.emarketer.com/zoom-wants-make-sure-video-

has-staying-power-post-pandemic-world.
31 https://www.fortunebusinessinsights.com/industry-reports/video-conferencing-market-100293.
32 Data Source: UNESCO, https://unesdoc.unesco.org/ark:/48223/pf0000376061.
33 Data Source: https://www.globenewswire.com/news-release/2020/12/17/2146962/0/en/Global-
E-learning-Market-Size-Trends-Will-Reach-USD-374-3-Billion-by-2026-Facts-Factors.html.
The potential demand of telemedicine for cloud video continues to increase. In the
COVID-19 pandemic, 34% of Americans used Zoom for telemedicine.34 In March
2020, the United Kingdom, the United States and Germany unyoked regulatory
restrictions and revised privacy-related regulations to support telemedicine models
that covered video diagnose-through-interrogation. In 2019, the proportion of global
video consultation reached c. 1% and would rise to 5% in the end of 2021 as predicted,
with a market scale of more than 25 billion U.S. dollars.35
In the COVID-19 pandemic, the cancellation of large-scale scientific and techno-
logical events caused a direct economic loss of more than one billion U.S. dollars.36
Mobile World Congress (MWC), originally scheduled to be staged in Barcelona
in February 2020, was called off. Facebook F8 and Global Marketing Summit were
formerly scheduled to be held in February 2020, and were later held online in March.
With the development of cloud technology, online conference gradually matures in
function and forms the ability to provide cloud services for transnational coopera-
tion. In April 2020, Tencent Meeting came to an agreement with the United Nations
to support thousands of online activities for the 75th anniversary of the founding of
the United Nations.
6.5.2 Audio Social Media Face Both Opportunities

and Challenges
In 2021, Clubhouse emerged rapidly and thereupon attracted public attention to

the transformation of the function and service form of social media industry. As a
social audio app that was developed in March 2020, Clubhouse runs a registration-
invitation system. At the outset, one user can only invite one person. Later, one user
can invite two or more. Users can choose the topics they are interested in and join
the corresponding rooms according to algorithmic recommendation. The number of
users in each room is limited to 500, and what they chat will not be saved when the
room changes. In Clubhouse, private content is shared among a group in which new
members are invited only, making it hard to obtain an account. The invitation code
of Clubhouse was frequently unavailable and even hyped to more than 1000 U.S.
dollars for a time.
The emergence of Clubhouse is directly related to the COVID-19 pandemic as
well as its social model. On the one hand, home isolation in the pandemic increases
citizens’ demand for online social activities. On the other hand, sharing a private room
34 Data Source: Global Alliance to Combat COVID-19 (GACC), https://chart-na1.emarketer.com/

242850/how-us-physicians-healthcare-practitioners-accessing-telehealth-their-practice-of-respon
dents-aug-2020.
35 Data Source: Deloitte, https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/techno
logy-media-telecommunications/deloitte-cn-tmt-predictions-2021-zh-201214.pdf.
36 Data Source: eMarketer, https://content-na1.emarketer.com/the-five-short-term-and-long-term-
impacts-of-the-coronavirus-pandemic-on-connectivity-and-tech-companies-2020-3.
with big names gives users a false impression that real identity plays an insignificant
role in social circles. For the two reasons, new socializing models inevitably come
to rise, so does audio social media. As a well-received social audio app, Clubhouse
was firstly popular among founders of start-ups, investors and senior executives in
the field of digital technology. Later, Clubhouse was widely favored in the world.
In February 2021, users downloaded Clubhouse 9.6 million times; yet the download
considerably slowed down in March 2021, dropping to 2.7 million times, down 72%.
One view was upheld that users came to realize that the weakly-connected virtual
socializing with elites cannot really help them jump out of information cocoons that
took root in original social circles. With the resumption of production, Clubhouse
users returned to reality again.
Presently, Twitter is testing its product TicketedSpaces, a counterpart of Club-
house. Compared with Clubhouse, Twitter owns large scale, complete infrastructure
and content-review experience to promote audio socializing. Discord, an audio social
platform that develops from game voice, also expanded rapidly in the COVID-19
pandemic. In 2020, the number of global Discord users totaled 140 million, up 100%
over 2019. In December 2020, the appraisal value of Discord reached 7 billion U.S.
dollars. In April 2021, Microsoft negotiated to acquire it at a price of 10 billion
U.S. dollars at least.37 Stereo, another emerging audio socializing network, which
is functionally akin to Clubhouse, adds functions like automatic social matching.
Since its launch in August 2020, the total global installation of Stereo has reached
3.2 million times. Additionally, various forms of media also diversify the functions
of audio socializing. LinkedIn, the social media in workplace, tests its function of
audio socializing. Spotify, the music streaming media, incorporates podcasts and
podcast creators into its business, and acquires Locker Room, an audio socializing
platform that focuses on sports.
Noticeably, the commercialization of audio socializing meets a series of chal-
lenges from various problems, such as the uncertainty of user scale and use frequency,
the difficulty in measuring the effect of commercial promotion, and the instability of
content-review mechanism. Now, Clubhouse comes to stage of slump in the growth
of user number, and Twitter cannot maintain the user scale of its audio socializing
media. Certainly, audio socializing requires less time and energy than video social-
izing yet more time and energy than other ways to count thumbs. Users have a
very short attention span, which complicates the commercial promotion of audio
socializing.
37Data Source: The Wall Street Journal, https://www.wsj.com/articles/discord-ends-deal-talks-

with-microsoft-11618938806.
6.5.3 The Transformation of Film and Television Industry

into Streaming Media Accelerates
In the COVID-19 pandemic, traditional film and television industry was severely
mauled, which meant an opportunity for the development of emerging streaming-
media platforms and further promoted the transformation of traditional film and
television industry to the technology and business model of streaming media.
In the pandemic, home isolation made streaming media the first choice of enter-
tainment for consumers, and the use of streaming media by global consumers
increased significantly. Netflix, which took the lead in streaming media, enlarged
its advantages. In 2020, its subscription rose by 37 million, and its global subscrip-
tion reached 200 million. In 2020, Netflix realized an annual business revenue of
25 billion U.S. dollars, with an increase of 24% year on year (over 2019), of which
53.7% came from the markets outside North America.38
“Disney+”, Disney’s streaming-media platform, had more than 100 million
subscriptions in March 2021. With many well-known IPs, Disney is expected to
challenge Netflix as a powerful competitor in the future. Hulu, which Disney took
over in 2019, also had 40 million subscriptions in the end of 2020. In 2020, Amazon
had around 35 million subscriptions. “Apple TV+” grows slowly in subscription.
Presently, c. 62% of “Apple TV+” users have free trials when they buy Apple
devices.39 HBO Max, a rising star, was launched in May 2020. On the strength of
a series of classic film and television works in its copyright library, such as Friends
and The Big Bang Theory, HBO Max gained more 1.7 million users in five months.40
In the fourth quarter of 2020, Netflix’s share of the streaming media market fell from
25 to 22%, yet that of HBO Max increased from 9 to 12%.41
Streaming media seized the opportunity and expanded vigorously in the COVID-
19 pandemic, whereas traditional film and television industry suffered a heavy blow.
In 2020, global film box office only reached 12 billion U.S. dollars under the impact of
the pandemic, down c. 72% year on year (over 2019), ending the more-than-10-year
growth in global film box office. Traditional film and television industry attempted
to achieve new development with the help of the transformation of streaming media.
Wonder Woman 1984 by WarnerMedia was launched at both cinemas and HBO Max
(a streaming-media platform of Warner). Soon afterwards, WarnerMedia decided
to launch all its 2021 films at HBO Max. Disney’s Mulan was also transferred to
“Disney+” (Disney’s streaming-media platform) for its debut. Film companies that
38 Data Source: Nielsen, https://www.nielsen.com/us/en/insights/article/2021/tops-of-2020-nie

lsen-streaming-unwrapped/.
39 Data Source: https://observer.com/2020/06/apple-tv-plus-is-losing-against-netflix-disney-plus-
amazon-hulu/.
40 Data Source: Variety, https://variety.com/2020/tv/news/friends-number-one-show-hbo-max-123
4717416/.
41 Data Source: Forbes, https://www.forbes.com/sites/travisbean/2021/01/09/this-new-streaming-
report-shows-that-hbo-max-is-gaining-on-netflix-amazon-and-hulu/?sh=19a3b1fd7d86.
had not established streaming-media platforms adopted the dual strategy of delaying
the release and selling to streaming-media platforms.
Now, theatre chains are successively opened, yet film distribution models are
likely to change. In March 2021, WarnerMedia signed an agreement with Regal
Cinemas, which signaled that WarnerMedia would return to cinema business in
2022. WarnerMedia would reduce the screening time from 90 to 45 days and launch
its films at HBO Max.42 ViacomCBS adopted a similar strategy. Films were shown
in cinemas for 30–45 days only before entering “Paramount+”. Netflix even tried
to negotiate with cinemas to shorten the screening time prior to the outbreak of the
pandemic.43 In the future, traditional film and television industry may consider how
to balance the profits from streaming media and cinemas.
42 Data Source: https://variety.com/2021/film/news/regal-cinemas-reopen-cineworld-godzilla-vs-

kong-1234936229/.
43 Data Source: https://www.nytimes.com/2019/11/01/business/irishman-netflix-theaters.html.
Chapter 7
World Cybersecurity Development
7.1 Outline
In 2021, global cybersecurity faced a grimmer picture. Advanced Persistent Threat

(APT) attacks against governmental agencies became extremely active. SolarWinds
Event, the blackmail attack on the U.S. oil pipeline operator and other widespread
cyberattacks occurred frequently. Besides, the number of cybersecurity vulnerabil-
ities and exposures maintained a high growth rate, large-scale data-leakage inci-
dents arose successively, the illegal collection and abuse of personal information
became more prominent, and the situation of cybersecurity in industrial manufac-
turing, mobile network, public cloud and other fields remained gloomy. The inno-
vation on cybersecurity technologies like data-privacy protection and new techno-
logical security and risk prevention attained continuous achievements, and cyber
resilience became a buzz word in the field of cybersecurity. In line with the changes
in international landscape and the needs of national development, various countries
in the world continued to strengthen the revision and perfection of cybersecurity
policies and strategies, highlight the work on supply-chain security, key information-
infrastructure protection, data-security protection and biometrics, and take multiple
measures to consolidate the construction of cybersecurity capacity.
Generally, the COVID-19 pandemic had little impact on global cybersecurity
industry. The scale of cybersecurity industry grew stably, and venture capital to
cybersecurity industry hit a new record high, with hopeful market outlook and devel-
opment trend. Cloud security market also increased significantly. In spite of the facts
that global cybersecurity-talent gap displayed a narrowing trend for the first time and
that cybersecurity-talent team building and skill training continuously improved,
global cybersecurity-talent shortage remained in the doldrums.

https://doi.org/10.1007/978-981-19-9323-7_7
158 7 World Cybersecurity Development
7.2 Cybersecurity Threats Continue to Evolve
Global APT attacks remain active, and APT organizations continually emerge. The
targets of APT attacks include important fields such as government, national defense
and military industry and finance. The security weakness of the supply chain of cyber-
security industry becomes increasingly visible. The number of cybersecurity vulnera-
bilities and exposures maintains a high growth rate, and cybersecurity vulnerabilities
affect wider fields. As the risk of data leakage swells, large-scale data-leakage events
happen thick and fast, the ransoms frequently reach new highs, and the problem of
illegal collection and abuse of personal information becomes more serious. The situ-
ation of cybersecurity in industrial manufacturing, mobile network, public cloud and
other major fields presents a bleak future.
7.2.1 Typical Trends in Cybersecurity Risks and Threats
1. APT
In 2020, global APT attacks proved extremely active, with 687 public reports
throughout the year. Among them, 132 organizations were involved in the expo-
sure, and 25 organizations were firstly exposed. More unknown APT organizations
emerged, and many known organizations expanded the attack fields. Significant
changes took place from the targeted region to industrial field. In particular, the
attacks on suppliers intensified. After APT organizations used “zero-day weapons”,
the current-preferred-attack tactics emerged. For example, OceanLotus often adopted
the attack-on-suppliers strategy and preferred educational industry.1
The attack on the supply chain of SolarWinds exposed in December 2020 made
the fact surface that suppliers were evolving into the weaknesses in security industry.
In response to the attack, the U.S. Cybersecurity and Infrastructure Security Agency
(CISA) advised institutions and organizations to solve system-related vulnerabili-
ties and share threat-related information, so as to support the response of relevant
departments of the Department of Homeland Security. Simultaneously, institutions
and organizations must allocate sufficient resources, encourage third-party support,
and consider rebuilding Orion’s cyber assets.
2. Vulnerability
From January to October 2020, the number of public vulnerabilities and expo-
sures events worldwide reached 730, which caused the exposure of more than 22
billion records. To be specific, 35% of the intrusions related to ransomware attacks,
and 14% of the intrusions resulted from e-mail leakage. From 2015 to 2020, the
1Beijing Qihoo 360 Technology Co., Ltd.: 2020 Research Report on Global APT, February 2021,
https://rsbeijing.oss.yunpan.360.cn/Object.getFile/360report/MjAyMOWFqOeQg+mrmOe6p+
aMgee7reaAp+WogeiDgUFQVOeglOeptuaKpeWRii5wZGY=.
7.2 Cybersecurity Threats Continue to Evolve 159
number of Common Vulnerabilities and Exposures (CVE) increased at an average

annual growth rate of 36.6%. Browsers like Google’s Chrome, Firefox, IE and Edge
were main targets of “zero-day”. Microsoft and Oracle released and updated key
patches monthly and quarterly respectively; notwithstanding, that involved hundreds
of vulnerabilities and had difficulty in determining the priority of repair.2
Additionally, in the COVID-19 pandemic, a substantial number of Remote Display
Protocol (RDP) ports were exposed. The number increased rapidly, exceeding 4.5
million by March 2020. The main reason for RDP-port exposure was that the pass-
words were excessively simple, which allowed attackers to use brute force attacks
to gain access. Presently, there is a complete set of business that centers on RDP at
dark web. In order to protect the business from attack, the business follows security
principle and uses strong password and vulnerability repair, for example.3
3. Data Security
Under the teleworking model and cloud-based business operation model, the access
to sensitive data soars and the risk of data leakage enlarges. In 2020, according to
the in-depth analysis of data-leakage events of more than 500 organizations in the
world, the average cost loss to enterprises totaled 3.86 million U.S. dollars, and 80%
of the events caused the exposure of customers’ personal identity information. The
loss cost of oversize data-leakage events mounted, and the loss cost of more than
50 million records from the leakage jumped from 388 million U.S. dollars in 2020
to 392 million U.S. dollars. The number of leakage records ranged from 400,000
to 50 million, with the average loss cost reaching 364 million U.S. dollars, with an
increase of 19 million U.S. dollars over 2019.4
The problem of illegal collection and abuse of personal information deteriorates.
Internet corporations like Google and Facebook face lawsuits in many countries for
illegal collection and use of users’ data. In March 2021, Google faced a class action,
which accused Google of secretly collecting users’ data when users chose the “stealth
mode” of privacy, requiring Google to compensate at least 5 billion U.S. dollars. In
June 2020, Google was accused of tracking personal information in case that users
took measures to protect their private information. In December 2020, Australian
Competition and Consumer Commission filed a lawsuit, accusing Facebook and its
Onavo Protect (an app platform) of using their servers to collect important data on
personal activities and obtain commercial benefits by supporting market analysis and
related activities.
2 Data Source: Tenable, 2020 Threat Landscape Retrospective, 2021.01, https://pt-br.tenable.com/

cyber-exposure/2020-threat-landscape-retrospective.
3 Data Source: McAfee, Cybercriminals Actively Exploiting RDP to Target Remote Organiza-
tions, https://www.mcafee.com/blogs/other-blogs/mcafee-labs/cybercriminals-actively-exploiting-
rdp-to-target-remote-organizations/.
4 Data Source: Cost of a Data Breach Report 2020 published by IBM Security, July 2020, https://
www.ibm.com/news/cn/zh/2020/08/05/20200805.html.
4. Ransomware
According to incomplete statistics, in the first half of 2021, there were at least 1200
attacks launched by ransomware in the world, approximating to 1420 attacks as
exposed in 2020. Particularly, the attacks on medical system and educational industry
expanded by 45%, with the average ransom rising from 400,000 U.S. dollars in 2020
to 800,000 U.S. dollars in 2021.5 In these ransomware attacks, around 70% of ransom
gangs adopted the strategy of double ransom, threatening that victims must pay huge
ransoms for data leakage. As ransoms were generally paid via cryptocurrency, whose
security and anonymity posed difficulties and challenges to the tracking work of
law-enforcement departments.
In the future, high-value customers of cloud-based enterprises will be one of major
targets of ransomware. Besides, with the popularization of ransomware technology
and the maturity of ransomware industrial chain, ransomware attacks will become
more diverse and frequent. Now, ransomware arises on platforms like Mac OS and
Android. As the preventive measures of Windows improve, illegal hackers may turn
to attack other platforms in the future.
7.2.2 Trends in Cybersecurity Threats in Key Sectors
1. The Industrial Sector Suffers Serious Cyberattacks.

Internet threat remains the biggest source of threats in the industrial sector. In
2020, there were c. 70 publicly-reported industrial information security incidents,
involving eight sectors, i.e. equipment manufacturing (27%), energy (electricity,
oil and natural gas, 22%), transportation (14%), electronic information manufac-
turing (12%), consumer goods manufacturing (11%), water conservancy (7%), raw
materials (4%), and software and information services (3%). From 2018 to 2020,
the proportion of incidents that arose from ransomware attacks increased for three
consecutive years, ranking the 1st among the causes of global incidents on indus-
trial information security for two consecutive years, far higher than other attack
means. In 2020, the proportion even reached 57.1%, and around 16% of industrial
computers worldwide suffered cyberattacks every month. The sectors with high-
proportion attacks of industrial control systems were mostly distributed in the middle
and low end of the industrial chain, or in Asia and Africa that mainly developed
processing and manufacturing sectors. The proportion of ransomware attacks was
lower in Europe and North America.6
5 DBAPP Security: Global Ransomware Trends Report in the First Half of 2021, June 2021, https://
mp.weixin.qq.com/s?src=11&timestamp=1626682101&ver=3199&signature=dxnQxOgmQUex
NF4NeYr6Ir*G3VTI3OBprVURS*b9TV3d6d5sZKQRH4knZHG26FkfU8npB*VeWEd3F29
QTXINq-LbHpnBEBhdtxd1Ez00bkvaztEDKWMWof6EGOjo97xp&new=1.
6 CIC: Analysis of Industrial Information Security Situation in 2020–2021, January 2021, https://
apptdavtird9749.h5.xiaoeknow.com/content_page/eyJ0eXBlIjoiMiIsInJlc291cmNlX3R5cGUiOjI
wLCJyZXNvdXJjZV9pZCI6ImVfNjAwYTg1MDdlNGIwZjE3NmFlYzg5ZGMzIiwiYXBwX2lk
IjoiYXBwdERBdnRpUkQ5NzQ5IiwicHJvZHVjdF9pZCI6IiIsInJlZl9pZCI6InJfNjAwYTg1MDd
lNGIwZjE3NmFlYzg5ZGM0In0.
7.3 Various Countries in the World Continue to Improve the Formulation … 161
2. Mobile Malware Rages All Over the World.
In 2020, in the COVID-19 pandemic, teleworking emerged extensively, which

dramatically expanded the scope of mobile attacks. And 97% organizations faced
mobile threats from various types of attacks. Almost all organizations experienced at
least one mobile malware attack, 93% of which came from device networks. Mobile
malware attacks tried to trick users into installing malicious programs via infected
websites or URLs, so as to steal user credentials. Nearly 50% organizations were
affected by malicious mobile apps, and 46% organizations had at least one employee
who downloaded malicious mobile apps. At least 40% global mobile devices had
inherent vulnerabilities. Owing to the problem of chipset defects, vulnerabilities were
commonly detected in mobile devices, and security patches were urgently needed to
be installed.
3. Cloud Security Still Faces Severe Challenges.
In 2020, Cybersecurity Insiders, an information security community, conducted an
online survey of 653 cybersecurity and IT professionals, in order to understand the
latest trends, key challenges and solutions on cloud security in various industries and
fields. As the survey suggested, four major security threats to current public cloud
included cloud-platform configuration error (primary threat), unauthorized cloud
access, unsafe interface and account hijacking. In descending order, main cloud-
based security barriers were respectively the lack of qualified employees, budget
constraints, data-privacy issues, and the lack of integration with local security. In
terms of the effectiveness of security tools, 82% respondents stated that traditional
security solutions were of no avail, or only provided limited protection in the cloud
environment. Vis-à-vis in 2019, 66% respondents held the view. In terms of the
budget of cloud security, 59% organizations expected their budgets to increase, and
averagely, 27% security budget would be allocated to cloud security.7
7.3 Various Countries in the World Continue to Improve

the Formulation of Cybersecurity Policies
Facing the severe situation of cybersecurity, various countries in the world continue
to strengthen the strategic role of cybersecurity, strive to enhance the protection of
supply-chain security and data security, and actively facilitate the construction of
national cybersecurity capacity. However, benefit frictions exist in the fields of cyber
sovereignty, data-security protection and supply-chain security.
7Data Source: Check Point and Cybersecurity Insiders, CLOUD SECURITY REPORT 2020,
2020.08, https://cloudxchange.io/assets/documents/2020-cloud-security-report.pdf.
7.3.1 The Formulation of Cybersecurity Policies: A Survey
In line with the changes of international landscape and the needs of national develop-
ment, various countries continue to improve the strategic layout of cybersecurity. In
July 2020, European Network and Information Security Agency (ENISA) released A
Trusted and Cyber Secure Europe, which aimed to advance cybersecurity, prepared-
ness and trust within the European Union. In December 2020, the European Union
issued The EU’s Cybersecurity Strategy for the Digital Decade. Giving suggestions
on regulations, investment and policy tools, The EU’s Cybersecurity Strategy for
the Digital Decade aimed to lead and build more secure cyberspace and ensure
and promote the development of EU’s digital economy. In August 2020, Australia
released Cyber Security Strategy 2020, which outlined Australia’s way to ensure the
online security of individuals, key infrastructure providers and enterprises. Cyber
Security Strategy 2020 intended to establish a “more secure online world” and put
forward a “plan to protect Australian online users”, with emphasis on enforcing the
laws and strengthening Australia’s national cybersecurity organizations. In October
2020, Singapore initiated Singapore’s Safer Cyberspace Masterplan 2020, which
proposed three strategic goals (i.e. protecting core digital-technology facilities,
protecting digital activities and helping cyber-related population) and planned to
implement 11 measures in three years to improve cybersecurity levels in all aspects.
In March 2021, the U.S. White House published Interim National Security Strategic
Guidance. As the first policy-guidance document issued by the Biden administration
that comprehensively responded to international and domestic situations, the Guid-
ance particularly mentioned cybersecurity, clearly stating that cybersecurity meant
the top priority and that the United States would strengthen its cyberspace capability,
readiness and resilience. In May 2021, U.S. President Biden signed and issued Exec-
utive Order on Improving the Nation’s Cybersecurity, which elaborated on general
ideas and specific requirements of the Biden administration on strengthening and
improving the management of the U.S. cybersecurity. In March 2021, the United
Kingdom promulgated Global Britain in a Competitive Age—The Integrated Review
of Security, Defence, Development and Foreign Policy, the first time that the United
Kingdom issued similar report since the end of the Cold War. As a guidance docu-
ment for British cybersecurity, it emphasized the strategic role of cybersecurity and
drew a blueprint after Brexit, hoping to forge British influence worldwide in a deeper
and wider way. Additionally, Malaysia launched Cybersecurity Strategy 2020–2024,
and Pakistan released National Cybersecurity Policy 2021 (Draft), which constantly
diversified and optimized their national cybersecurity policy systems. As the report
Trends in Digital Africa 2021 reveals, 64% African countries have now formulated
national overall policies or ICT masterplans, vis-à-vis less than 40% five years ago.
7.3.2 Key Layout of Cybersecurity
1. Buttressing the Supply Chain Security

Against the backdrop of global combat against the COVID-19 pandemic and the far-
reaching influence of attacks on supply chain (e.g. SolarWinds Event), various coun-
tries attach more attention to the problems on their supply chains. There are basically
two trends. They stress, on the one hand, the diversified layout of the supply chain, and
on the other hand, the integrity of their supply chains. In September 2020, Japan, India
and Australia came to an agreement, launching the initiative to establish a resilient
supply chain in the Indo-Pacific Region. In November 2020, the United Kingdom
released 5G Supply Chain Diversification Strategy, which summarized how British
government would ensure “it will never relying on a few telecom suppliers” and create
a diversified structure of British telecom supply market. Australia published Critical
Technology Supply Chain Principles (Draft) in August 2020 and Guidelines for Iden-
tifying and Managing Network Supply Chain Risks in January 2021, which hoped to
help enterprises identify the risks related to network supply chains and offer best prac-
tices for managing network-supply-chain risks. At the beginning of 2021, the U.S.
Department of Commerce and other departments successively released Securing the
Information and Communications Technology and Services Supply Chain and Export
Administration Regulations to continuously strengthen procedure management like
the security-risk identification, assessment and handling of external dependence on
cybersecurity products and services. In February 2021, U.S. President Biden signed
Executive Order on America’s Supply Chains, instructing federal agencies to review
the security risks of supply chains in various industries (including information tech-
nology), in order to address the fragility and risk of America’s supply chains and
build more resilient and secure supply chains. The U.S. House of Representatives and
Senate also introduced many acts to continuously strengthen the supply chain security
in semiconductor manufacturing and other fields. In April 2021, German Bundestag
approved Communication Security Act 2.0, a more stringent 5G security act, which
would restrict 5G technology of “untrustworthy” suppliers, and require local telecom
operators to notify German government when signing 5G key components.
2. The Protection of Critical Information Infrastructure
In recent years, as attacks on critical information infrastructure continued to increase,
how to ensure the secure and stable operation of critical information infrastructure
became a central issue in various countries. The U.S. Cybersecurity and Infrastruc-
ture Security Agency (CISA) published new-edition Guidelines on Human Resources
in Critical Infrastructure: Ensuring the Resilience of Communities and Countries
in Response to the COVID-19, which clarified the requirements for departments
and personnel to implement the protection of critical information infrastructure.
In February 2021, CISA released a document called CISA Global Engagement,
which proposed four action guidelines, i.e. business cooperation, building capacity,
stakeholder’s participation and expansion and shaping policy environment. As the
document stated, the United States would reinforce the security and resilience of
global critical information infrastructure by boosting international cooperation. In

November 2020, Australia issued Amendment to Security Legislation (Critical Infras-
tructure) Act 2020 (Draft), which implemented the “framework for enhancing the
security and resilience of Australia’s critical infrastructure”. In the meantime, the
United Kingdom introduced Telecommunications Security Act (Draft) to ensure the
“long-term security and resilience” of the British telecommunications network. In
January 2021, Brazil launched Act Nº 77 Cyber Security Requirements for Telecom-
munication Equipment. In response to a number of major cybersecurity incidents
in recent years, Ukraine introduced Legislation on Critical Information Infrastruc-
ture (Draft) in March 2021, so as to strengthen the protection of critical information
infrastructure. In April 2021, the State Duma of Russia passed Act on the Fines and
Protection of Critical Information Infrastructure.
3. Strengthening Data-Security Protection
Confronted with the grimmer picture of data-security threats, various countries
attach great importance to data security. In June 2020, European Data Protection
Supervisor (EDPS) released EDPS Strategy 2020–2024—Shaping a Safer Digital
Future, which focused on “digital solidarity” and continued to consolidate data-
security protection from three aspects, i.e. prospect, operability and coordination.
The Presidential Office of Brazil promulgated a law to establish new data-protection
agencies. In September 2020, the United Kingdom issued National Data Strategy
and canvassed public opinion. National Data Strategy established a framework for
processing and investing data and promoting economic development. In October
2020, the U.S. Department of Defense released the first data strategy DoD Data
Strategy, which outlined eight guiding principles, four basic capabilities and seven
major goals to build DoD into a “data-centered organization”. In October 2020,
Agencia Española de Protección de Datos (AEPD, Spain) published Guidelines
for Data Protection by Default, which explained the strategies, specific measures,
records and audit requirements of the principles for data protection by default. In
January 2021, the 1st ASEAN Digital Ministers’ Meeting (ADGMIN) approved the
release of ASEAN Data Management Framework (DMF) and ASEAN Model Contrac-
tual Clauses for Cross Border Data Flows (MCCs), which aimed to make internal
data-flow rules in ASEAN for the development of regional digital economy and
digital trade, so as to facilitate the business operation in relation to data in ASEAN,
reduce the costs of negotiation and compliance, and ensure the protection of personal
data in the process of cross-border data transmission. Besides, Nigeria released Data
Protection Law 2020 (Draft), Brazilian National Data Protection Authority published
Strategic Plan 2021–2023, and Irish Data Protection Commission issued Regulatory
Strategy 2021–2026 and sought public advice to continuously fortify data-security
protection.
Simultaneously, countries expedite the layout of personal-information and
privacy-data protection, further clarify the scope of the use of personal information,
and severely crack down on the illegal use of personal information. In March 2021,
Personal Data Protection Commission (PDPC) of Singapore promulgated The Guide
on Active Enforcement, which contained the details of voluntary commitments under
Personal Data Protection Act, as well as information on law-enforcement actions and

economic penalties. In September 2020, Information Commissioner’s Office of the
United Kingdom released Guide for Data Protection in Collecting Customer Infor-
mation. In November 2020, Japan formulated Guide 1.0 for Privacy Management for
Enterprises in the Era of Digital Transformation to help start-ups solve the problems
related to the construction of personal-privacy management. In November 2020, New
Zealand Office of the Privacy Commissioner published Framework for Compliance
and Regulatory Actions. In April 2021, the French data protection authority issued
the document Anonymization of Personal Data.
Various countries are deeply concerned with ensuring the orderly and secure
cross-border flow of data. The European Union published Measures that Supple-
ment Data Cross-Border Transfer Tools to Ensure Compliance with the EU Level
of Protection of Personal Data, which provided further guidance for data protec-
tion in cross-border data flows. The EU member states actively released documents
like European Data Gateway as the Key Element of the EU Digital Decade, which
foregrounded the intention of building a “single data market” to safeguard the data
flow between the EU member states and industrial sectors. In April 2020, Turkish
Data Protection Authority issued Announcement on Commitment Letters for Cross-
Border Data Transfers. In June 2020, the United Kingdom announced its future
strategy of technology and trade after Brexit, allowing the free flow of data between
the United Kingdom and some Asia–Pacific countries. Dubai introduced new Inter-
national Financial Centre Data Protection Law, which stipulated the notification
procedures, accountability, record keeping, fines and appropriate jurisdiction for
cross-border transfers of personal data for data protection commissioners, in order
to foster the free flow of cross-border data.
4. Th Prevention and Control of Biometric Data Security Risks
With the wide application of new technologies like 5G and AI, the security risks of
face recognition arouse more attention. The legislative progress of relevant policies
in various countries accelerates, and corresponding regulatory constraints become
clearer. In January 2021, the Advisory Committee of Convention for the Protection
of Individuals with Regard to Automatic Processing of Personal Data released the
guide on face recognition, which further advanced the application of face recogni-
tion, an important technology in the digital era, toward regulation. The U.S. Senate
and House of Representatives also introduced The Facial Recognition and Biometric
Technology Ban Act of 2020. The United States proposed National Biometric Infor-
mation Privacy Act at the federal level to set norms for the use of biometric data
by enterprises. Various states also launched corresponding face recognition acts to
restrict the use of biometric technology by public departments. In April 2021, Polish
Data Protection Agency issued Guidelines for the Use of Biometric Data. Estonian
government introduced an act to establish a database of an automatic biometric
system.
5. Strengthening the Construction of Cyber Armies and Talent Teams
As C4ISRNET reports, the U.S. defense budget for fiscal year 2022 proposes the
phased addition of 14 cyber armies between fiscal year 2022 and fiscal year 2024, on
the basis of 133 cyber armies of the United States Cyber Command, which can fulfill
cyber warfare. In May 2021, the U.S. Department of Homeland Security announced
that it planned to recruit 200 experts on cybersecurity by July. In November 2020,
British Prime Minister Boris Johnson proclaimed the establishment of National Cyber
Force (NCF), which engaged in anti-terrorism and cracked down on organized crimes
and activities of hostile states in cyberspace. Purportedly, the United Kingdom plans
to establish a national cyber force and transfer talents from Ministry of Defence
and security services agencies (e.g. Government Communications Headquarters and
Military Intelligence 6). Japanese Ministry of Defense intends to enlarge the size of
cybersecurity personnel, from 660 in the end of fiscal year 2022 to more than 1,000
in fiscal year 2023. In 2022, Japanese Ministry of Defense also established a new
supervision department for cyber defense from Japanese Self-Defense Force, which
took charge of integrating corresponding units in various branches to improve the
efficiency of cyber defense.
7.4 The Innovation and Development of Cybersecurity

Technology
In the face of increasingly complex and severe cybersecurity situations, world-

renowned cybersecurity corporations vigorously explore practical paths and make
beneficial innovations in cybersecurity technology, which provide technological
support for effectively handling various cybersecurity threats.
7.4.1 Cyber Resilience Becomes a Buzz Word in the Field

of Cybersecurity
As a weathervane that leads the reform and development of global cybersecurity

industry, RSAC 2021 took “resilience” as the theme. In June 2020, World Economic
Forum (WEF) released Oil and Gas Industry Cyber Resilience: Playbook for Boards
and Corporate Officers, which required corporate officers to continuously improve
organization’s cyber resilience and assess stock risks and new risks. In 2021 Global
Networking Trends Report, Cisco proposed five networking strategies (i.e. secure
remote access, trusted intelligent workplace, multi-cloud network, network automa-
tion and AI support) to bolster business resilience. In June 2020, Ponemon Institute
7.4 The Innovation and Development of Cybersecurity Technology 167
and IBM Security published Annual Survey Report on Cyber Resilient Organiza-
tions,8 which stated that more enterprises adopted Cyber Security Incident Response
Plan (CSIRP), with the percentage of organizations that achieved high-level cyber
resilience rising from 35% in 2015 to 53% in 2020. Accenture, a provider of cyber
resilience solutions and services to American government and customers, demon-
strated in Innovate for Cyber Resilience 20209 that leading enterprises and organiza-
tions placed a high premium on Security Orchestration, Automation and Response
(SOAR) in terms of innovative-technology investment, and regarded SOAR as a key
technology and priority-given technology to enhance cyber resilience.
7.4.2 New Practices on Exploring Data Privacy Protection
Technological innovation represented by secure computing, trusted execution envi-

ronment, secure multi-party computing and data desensitization signals beneficial
exploration in better protecting sensitive data. The overall self-adaptive method
proposed by IBM Security is based on zero trust principle and data privacy protection.
It not only realizes regulatory compliance, but also provides trustworthy customer
experience. Protegrity, a data security firm, provides data protection solutions that
support privacy, advanced analysis, AI, machine learning and cloud plan, which
enables technological organizations, system integrators and value-added resellers
(VAR) to seamlessly deliver Protegrity’s advanced data protection solutions to
common customers. Polypoly, a German start-up, makes a new plan for data use
to reset the relationship between data-demanding enterprises and consumers. The
plan integrates such elements as distributed computing, data-exchange platforms and
non-profit organizations. It not only ensures data under the control of consumers, but
also realizes the close monitoring and accuracy of data, so as to take into account the
development of data economy and the protection of data privacy.
7.4.3 New AI Attack Means
With the rapid development and wide application of AI technology, many vulnerabil-
ities and defects have been incessantly discovered. In addition to traditional cyberat-
tack means, new attack means, represented by AI-targeted reverse attacks, adversarial
attacks and dimensionality-reduction attacks, come to rise. Via reverse attacks, some
scholars restore face images used for training in face-recognition system and personal
8 Data Source: The Ponemon Institute and IBM Security,“The Cyber Resilient Organization” report,
2020.06, https://www.ibm.com/account/reg/us-en/signup?formid=urx-45839&_ga=2.193783405.
1960168662.1624263242-303856962.1624263242.
9 Data Source: Accenture, INNOVATE FOR CYBER RESILIENCE, 2020.01, https://www.accent
ure.com/_acnmedia/PDF-116/Accenture-Cybersecurity-Report-2020.pdf#zoom=40.
genetic data used in medical-assistance systems, which can cause serious informa-
tion leakage. Some research teams successfully complete the attack on spam moni-
toring systems and malicious-program monitoring systems in portable document-
format files by generating adversarial examples. Likewise, some researchers use
corresponding means to launch mimicry attacks on Google’s AlexNet and LeNet5
networks, so as to deceive AI devices by misclassification. In May 2021, Microsoft
introduced Counterfit, an automated tool for security testing of AI systems, which
can be used for adversarial security testing of AI services.
7.5 Cybersecurity Industry Develops Steadily
As governments and enterprises in the world pay more attention to cybersecurity year
after year, cybersecurity market displays great development potential. In general, the
COVID-19 pandemic had less impacts on global cybersecurity industry. The scale
of cybersecurity industry maintained stable growth, with hopeful market outlook.
In 2021, cybersecurity service market occupied main market share, cloud secu-
rity became the fastest-growing niche market, and venture capital to cybersecurity
industry hit a new record high, in which the United States, Israel and other countries
took the lead.
7.5.1 Global Cybersecurity Industry Maintains a Stable

Growth Rate
As IDC10 predicts, in 2021, global cybersecurity investment reached 143.5 billion

U.S. dollars, up 8.7% over 2020. From 2019 to 2024, global expenditure on cyberse-
curity will realize a CAGR of 9.41% and reach 189.2 billion U.S. dollars by 2024 as
estimated. In the first quarter of 2021, Gartner updated and released Forecast: Infor-
mation Security and Risk Management, Worldwide, 2019–2025.11 As it suggested,
in 2021, global expenditure on technology and service concerning information secu-
rity and risk management was expected to increase by 12.4% and total 150.4 billion
U.S. dollars, up 6.4% over 2020. According to Market Analysis Report published
by Grand View Research in April 2021,12 the scale of global cybersecurity service
market reached 91.15 billion U.S. dollars in 2020. With a CAGR of 10.2% from 2021
10 Data Source: Worldwide Security Spending Guide published by IDC, March 2021, www.idc.
com/getdoc.jsp?containerId=prCHC47519821.
11 Data Source: Gartner, Forecast: Information Security and Risk Management, Worldwide, 2019–
2025, 1Q21 Update, 2021.03, https://www.gartner.com/document/3999995.

12 Data Source: Grand View Research, Cyber Security Market Size, Share and Trends Analysis
Report By Component, By Security Type, By Solution, By Services, By Deployment, By Organi-

zation, By Application, By Region, And Segment Forecasts, 2021–2028, 2021.04, https://www.gra
ndviewresearch.com/industry-analysis/cyber-security-market.
7.5 Cybersecurity Industry Develops Steadily 169
to 2028, the scale would increase to 192.7 billion U.S. dollars in seven years. Owing
to different calculating approaches, major research institutions estimate overall scale
of cybersecurity industry differently yet achieve consensus on the stable growth rate
of cybersecurity industrial scale.
7.5.2 Cybersecurity Services Occupy a Dominant Market

Position
According to the data released by Gartner, cybersecurity services, such as consulting,

hardware support, implementation and outsourcing, occupied the largest proportion
in global expenditure on cybersecurity services in 2021, which approximated to 72.5
billion U.S. dollars. In niche market, cloud security saw the fastest growth, and IRM
(Integrated Risk Management) technology market robustly grew by more than 10%.
According to the data published by Grand View Research, professional cybersecurity
services dominated the market in 2020, with a market share of more than 72.0%.
Professional cybersecurity services mainly cover business support, technological
management service, consulting, training and emergency preparation and response
service. Relevant researchers stress that three driving forces that boost the scale
growth of cybersecurity service market referred to infrastructure demand, testing and
response demand and vulnerability and data-risk-protection demand. Predictably, in
2021, the expenditure on cybersecurity products and services in the Asia–Pacific
Region would reach 23.1 billion U.S. dollars, with a year-on-year increase of 12.6%.
The Asia–Pacific Region will see the fastest growth in cybersecurity service market in
the predictive period. Considering that India, Malaysia, Thailand and other countries
continually promote digitization, the Asia–Pacific Region hopefully becomes the
engine that fosters the growth of cybersecurity service market. Table 7.1 shows the
expenditure on cybersecurity and risk management in niche market from 2020 to
2021.
7.5.3 Venture Capital to Cybersecurity Industry Hits a New

Record High
As the latest report of Crunchbase,13 a business information platform, suggested,

albeit the COVID-19 pandemic, 2020 saw a new record high in the venture capital
of cybersecurity enterprises, with a total investment of more than 7.8 billion U.S.
dollars. In the last decade, venture capital to cybersecurity industry kept rising. Since
2017, around 1500 enterprises have been financed, of which 58% stayed in the seed
stage and 32% stayed in the early stage. In 2019, a total of 702 financing transactions
13Data Source: Crunchbase, Cybersecurity Research Report 2021, 2021.04, https://about.crunch

base.com/cybersecurity-research-report-2021/.
Table 7.1 The Expenditure on Cybersecurity and Risk Management in Niche Market from 2020
to 2021
No. Niche market 2020 (One million 2021 (One million Growth rate (%)
U.S. dollars) U.S. dollars)
1 Application security 3333 3738 12.2
2 Cloud security 595 841 41.2
3 Data security 2981 3505 17.5
4 Identity access 12,036 13,917 15.6
management
5 Infrastructure 20,462 23,903 16.8
protection
6 Integrated risk 4859 5473 12.6
management
7 Cybersecurity 15,626 17,020 8.9
devices
8 Other information 2306 2527 9.6
security software
9 Security services 65,070 72,497 11.4
10 Consumer security 6507 6990 7.4
software
Total 133,776 150,409 12.4
Data Source Gartner, May 2021
were obtained, with an aggregate amount of c. 7.6 billion U.S. dollars. In 2020, the
number of transactions decreased to 665; yet, the total investment increased to 7.8
billion U.S. dollars. Considering that the amount of venture capital to cybersecurity
industry had exceeded 3.7 billion U.S. dollars in the first few months of 2021, it
probably reached a new high in the end of 2021. In regional distribution, in the
past ten years, cybersecurity industry in the United States has raised 30 billion U.S.
dollars or so, ranking the 1st in the world, followed by Israel, China and the United
Kingdom.
7.6 The Cultivation of Cybersecurity Talents
In spite of the facts that the COVID-19 pandemic has less impacts on overall demand
for cybersecurity posts and that the gap in global cybersecurity talent presents a
narrowing trend for the first time, the huge gap in global cybersecurity talent makes
little headway. Countries take various measures to strengthen the construction of
cybersecurity talent teams and fortify the training of cybersecurity skills, which
constantly improves the skills of cybersecurity talents.
7.6 The Cultivation of Cybersecurity Talents 171
7.6.1 The Gap in Cybersecurity Talents Presents a Narrowing

Trend for the First Time
Information Systems Audit and Control Association (ISACA) and HCL Technolo-
gies jointly released the 2021 State of Cybersecurity Report. As it indicated, the
demand for cybersecurity posts in 2021 fluctuated gently; however, the recruitment
and attraction of cybersecurity talents faced equal challenges as these did in the past
years. In November 2020, (ISC)2 , or International Information Systems Security
Certification Consortium, published 2020 (ISC)2 Cybersecurity Workforce Study. As
noted, by June 2020, about 700,000 new professionals had entered cybersecurity
industry in one year, yet the current gap in global cybersecurity talent reached 3.12
million, vis-à-vis 4.07 million in 2019. This betokened a narrowing trend for the first
time and meant an 89%-growth in global cybersecurity talent to close the gap. In
regional distribution, in 2020, the Asia–Pacific Region had the largest gap in cyber-
security talent, running up to 2.04 million and accounting for 64% of the world. The
gap reached 520,000 and 370,000 in Latin America and North America respectively.
Michael Page, a global well-known recruitment consulting firm, warned that the
biggest challenge to cybersecurity-talent recruitment was talent shortage, followed
by the restriction on salary budget and the disparity between job hunters’ skills.
7.6.2 The Skills of Cybersecurity Talents Are Constantly

Improved
In February 2021, British government established the UK Cyber Security Council,

an independent organization that took charge of supervising and ensuring the quality
of cybersecurity skill training and certification-professional programs from various
regions in the United Kingdom, and providing one-stop service of cybersecurity-skill-
training information. In April 2021, French President Macron announced to invest
one billion euros to solidify cybersecurity construction, including strengthening the
education and training of cybersecurity personnel and exploring technological solu-
tions. Particularly, French government would spend 140 million euros on the educa-
tion and training of relevant personnel and build Le Campus Cyber Français with
an area of 20,000 square meters. At the beginning of fiscal year 2022, Japan Ground
Self-Defense Force Engineering College opened a cybersecurity course, hoping to
train more cybersecurity talents by teaching basic knowledge like programming
language. In 2021, Singapore set up an Operation-Technology-System Cybersecu-
rity Expert Group that consisted of 11 domestic and overseas experts, which would
assist Singapore in achieving the goal of overall blueprint of operation-technology-
system cybersecurity and formulate cybersecurity-operation guidelines and relevant
training programs. As cybersecurity technology evolves rapidly, employers pay more
attention to the practical skills of cybersecurity talents. By dint of a joint professional
military training system, American army makes full use of educational resources of
military and civilian academies to train cyber warfare personnel and organize prac-
tical training activities, so as to improve the skills of cyber force in cyber warfare.
Cybrary,14 an American cybersecurity skill training platform, stresses in its report
that against the background of the COVID-19 pandemic, the proportion of learning
on cybersecurity skills increases. Cloud security, as understructure of the securities in
other fields, outstrips IoT security and becomes the most popular certification field.
14 Data Source: Cybrary, Cybersecurity Skills Gap, 2020.06, www.cybrary.it/business/resources/

research-papers/cybersecurity-skills-gap-research-report/.
Chapter 8
World Rule-of-Law Construction
in Cyberspace
8.1 Outline
In the past year, confronted with unprecedented challenges like the spread of the
COVID-19 pandemic, the recession of world economy and the restructuring of
global political and economic relations, world rule-of-law construction in cyberspace
continued to develop steadily. Taking cyber sovereignty and security as a core element
in rule-of-law construction in cyberspace, various countries constructed and opti-
mized cybersecurity rule-of-law systems that centered on the frontiers of issues
like combating cybercrimes, governing network platforms and regulating emerging
technological risks.
(1) In the field of combating cybercrimes, law-enforcement work features collab-
oration, professionalization and subdivision. Various countries have improved
the effect of combating cybercrimes by establishing professional cyber law-
enforcement teams and building independent cyber law-enforcement systems.
Noticeably, Internet-platform-content review and juvenile protection play a core
role in cyber law-enforcement.
(2) In the field of cyber sovereignty, various countries have commonly recognized
the importance of cybersecurity in national security and taken comprehen-
sive measures (e.g. laws, policies and technological standards) to seek cyber
sovereignty and interests. Nevertheless, problems like technology hegemony
and militarization of cyberspace cramp global consensus on cyber sovereignty.
(3) In the field of governing network platforms, the network scale effect of network-
platform giants poses a threat to the fairness and sharing of network-market
competition order. Recently, the legislation on antitrust becomes an important
institutional tool for various countries to regulate the competition behaviors of
platform markets.

https://doi.org/10.1007/978-981-19-9323-7_8
174 8 World Rule-of-Law Construction in Cyberspace
(4) In the field of regulating emerging technological risks, countries have generally
strengthened the regulation on the application models of emerging technolo-
gies like blockchain, IoT and biometrics, ensuring that technological innova-
tion remains aligned with the optimization of services. On the one hand, by
filling the gap in legislation, various countries prevent the potential risks (e.g.
the infringement of personal privacy and other rights) that arise from the appli-
cation of emerging technologies. On the other hand, various countries diver-
sify regulatory bases and tools, and prudently regulate emerging use cases like
Fintech-ecology optimization and blockchain-evidence collection and preser-
vation, on the basis of encouraging the innovation and application of emerging
technologies.
8.2 Cybercrime Paints a Grim Picture

and Law-Enforcement in Cyberspace Governance
Arouses Wide Attention
The extensive application of network information technology accelerates the change

of human production and life styles, deepens the reform in industries and chains,
and improves the quality and efficiency of socioeconomic development. Simulta-
neously, it facilitates low-cost and high-efficiency cybercrimes. Presently, cyber-
crimes display the trend of industrialization, low-age and professionalization, and
cyberspace evolves into a base where law-breakers endanger national security, public
security and personal security. Therefore, taking effective measures to prevent and
control cybercrimes, strengthening cyber law-enforcement, and creating favorable
cyber environment become major goals in rule-of-law construction in cyberspace in
the world.
8.2.1 Cyber Law-Enforcement Continues to Improve

and New Law-Enforcement Departments Come to Rise
Globally, cybercrimes creep up, which raises higher requirements for cyber gover-
nance capacities of governments. Governments in various countries establish cyber
law-enforcement departments, and strengthen the construction of law-enforcement
organizations via regional, technological and multi-department cooperation, so as
to enhance national cyber governance capacities and law-enforcement level. In
recent years, the networks of many American governmental agencies and enter-
prises, including the U.S. Department of Homeland Security, have been frequently
attacked by hackers, which caused great hidden dangers to social security and national
security of the United States. In January 2021, the U.S. President signed National
Defense Authorization Act for Fiscal Year 2021, which set up the post of “Cyber
Czar” and aimed to coordinate the cybersecurity strategy of American government.
8.2 Cybercrime Paints a Grim Picture and Law-Enforcement in Cyberspace … 175
In April 2021, U.S. President Biden nominated Chris Inglis, former deputy director
of National Security Agency, as the first Cyber Czar.
The rise of cybersecurity risks requires governments and relevant agencies to
change their modus operandi and include cybersecurity issues in their budgets and
governance mechanisms. In April 2021, French President Macron announced that
French government would invest 136 million euros in the construction of “Cyber Fire-
fighter Program” of the Agence nationale de la sécurité des systèmes d’information
(ANSSI; English: French National Agency for the Security of Information Systems).
French government would take prompt response in the event of cyberattacks by estab-
lishing emergency agencies in various places. In June 2021, the European Commis-
sion proposed to integrate relevant resources and expertise of 27 EU member states
and organize a joint cyber department under the leadership of European Network
and Information Security Agency (ENISA), in order to jointly crack down on cyber-
crimes and cope with the threats of hackers, giving EU member states the power of
cross-border monitoring and detecting. The department would be put into operation
in June 2022 and fully completed in 2023. The members would comprise experts
from EU member states, Europol and European External Action Service.
Cybersecurity plays a key role in the development of digital economy. Digital
Services Act (Draft) released by the European Union stipulates that the law-
enforcement mechanism will cover the cooperation at the national and EU levels to
supervise how online intermediaries adapt to new regulatory requirements. Each EU
member state needs to appoint a digital-service coordinator, who acts independently
and takes the charge of supervising how intermediary-service organs (established in
EU member states) coordinate with the authorities of professional departments, as
well as imposing penalties (including fines). In April 2021, the United Kingdom set
up Digital Market Unit (DMU) within Competition and Markets Authority (CMA)
that supervised technological giants. Encouraging legitimate market competition,
this ensured that technological giants would not harm the interests of consumers and
small-sized enterprises with their huge advantages in digital market. As expected,
DMU, as a new department, would not be granted substantive power until 2022.
Besides, a regulation based on “fair trade, trust and transparency” would be imple-
mented, which was applicable to enterprises deemed to have strategic market
positions.
8.2.2 Priority Is Given to Content Review and Platform

Review is Strengthened
As the center of information aggregation and dispersion, network platforms form a

bilateral or multi-lateral market effect through efficient information matching, and
become an organizational center of social production and life. Information matching
serves as the essence and basis of network platforms, which enables massive informa-
tion to merge in the platforms. While optimizing resource allocation and facilitating
social life, network-platform ecology gathers huge amounts of illegal information,

which necessitates the strengthening of platform-content review in cyber governance.
Limited by technological capacities and law-enforcement resources, administrative
authorities cannot directly control all illegal acts in platforms. Instead, they tend
to impose legal obligations and responsibilities on platforms, urging platforms to
launch internal regulation and achieve public purposes.
EU’s Digital Services Act (Draft) provides all participants in an online ecosystem
with effective means to combat illegal content, goods and services. It authorizes users
to report illegal content in a simple and effective way, creates a privileged channel
for trusted signers to report illegal content, and requires platforms to give priority
to responding to the content. Permitted by national laws, EU member states can
order any platform operating in the European Union to delete illegal content. Addi-
tionally, EU member states set security obligations for large-scale online platforms,
demanding that these platforms take measures to protect their users from illegal
content, goods and services in serving overall organization. In May 2021, British
government promulgated new-edition Online Safety Bill (Draft), which required
network-service platforms and organizations to strengthen the control over cyber-
security in relation to terrorism, hate crime, cyber bullying and false or misleading
information. Violators will face hefty fines.
In regard to content that is not illegal but harmful, EU’s Digital Services Act
(Draft) attempts to take measures to delete harmful content or encourage the deletion
of harmful content on the basis of fully respecting the freedom of expression. The
priority is given to repairing platform vulnerabilities and preventing platforms from
enlarging harmful acts when being manipulated. The supervision, evaluation and
independent audit of the risk management of large-scale platforms reduce the risks
of platforms in the protection of basic rights, public interests, public health and public
security.
In the COVID-19 pandemic, network false information exploded. National Cyber
Security Centre (NCSC), a department under British Government Communications
Headquarters (GCHQ), stated in its annual report that it handled more than 200 cyber
incidents related to the COVID-19 pandemic in the past year, which accounted for
c. 1/3 of the total reported incidents. In most cases, criminals used complex online
methods to illegally obtain public or personal information and property. In March
2020, British government organized an anti-false information group to cope with
“interference and false information” related to the COVID-19 pandemic. In May
2021, British Crown Prosecution Service said that a man was arrested and sentenced
for sending massive fraudulent messages about the COVID-19 vaccines. In line with
EU’s Code of Practice on Disinformation, the European Union cracked down on
massive false information on the COVID-19 pandemic in 2020. In May 2021, the
European Commission released Guideline to Code of Practice on Disinformation,
which required Google, Facebook and other Internet platforms to strengthen the
handling of false information and discussed how to make them more effective tools
to combat false information globally. The Guideline aimed to expand the scope
of EU’s Code of Practice on Disinformation and require the fulfillment of reporting
8.2 Cybercrime Paints a Grim Picture and Law-Enforcement in Cyberspace … 177
obligations. As planned, the Guideline would be legislatively approved in the autumn

of 2021 and promulgated in early 2022.
In the supervision of network content, the problem of network-copyright protec-
tion becomes increasingly prominent. In March 2021, Court of Justice of the Euro-
pean Union (CJEU) ruled on the case of the copyright litigation or dispute between
VG Bild-Kunst (an visual arts association) and Stiftung Preußischer Kulturbesitz
(SPK, a virtual library). According to the adjudication, websites that displayed links
protected by copyright laws would be restricted by copyright owners. Copyright
owners had the rights to restrict the links by imposing contractual obligations on the
licensees (with the latter taking technological measures), so as to protect the works
from infringement.
8.2.3 Transnational Crimes Continue to Increase

and International Transnational Law-Enforcement
Gets Under Way
The development of network technologies enormously promotes socioeconomic

development. Yet, criminals use network technologies for crimes in an extensive way,
and transnational crimes become a common threat to countries. For a long time, inter-
national community lacks a universal and authoritative convention in coping with
cybercrimes, which restricts the effectiveness of the cooperation among countries in
combating transnational cybercrimes. In May 2021, at the 75th Session of the UN
General Assembly, the resolution on the UN Treaty on Cybercrime was adopted, and
the negotiation of the above-mentioned convention was scheduled to be officially
launched in January 2022. This signaled another key resolution after Resolution
74/247 at the 74th Session of the UN General Assembly, which established the Ad
Hoc Committee for the Negotiation of the Convention Against Cybercrime, as well
as a significant step towards the formulation of global convention against cybercrime.
In 2021, global police and law-enforcement agencies launched a series of large-
scale “operation” against cybercrime. After German police destroyed the world’s
largest dark web market, in January 2021, law-enforcement agencies in the United
States, Canada and several European countries jointly destroyed Emotet, a botnet. In
January 2021, law-enforcement departments of the United States and Bulgaria collab-
orated in closing down Netwalker, a website in dark web that was especially used to
leak the data of targeted users who did not pay ransom for ransomware. Transnational
law-enforcement cooperation among countries contributed to successfully combating
against cybercrimes.
Transnational law-enforcement functions as an effective means to curb transna-
tional cybercrimes under a globalization system. Many countries and regions come
to realize the importance of transnational law-enforcement. In February 2021, EU
member states reached consensus on newly-revised E-Privacy Regulation (Draft),
which aimed to strengthen the protection of user privacy in electronic communica-

tion services, and authorized EU member states to punish relevant violations by law.
In April 2021, the European Commission released a new strategy on “Defeating the
Increasingly Digital Organized Cybercrime Ecosystem”, which emphasized the chal-
lenge of investigating organized crimes within the European Union and highlighted
specific risk areas, including cryptocurrency transaction, dark market and malicious
software. In April 2021, Russian government promoted the ratification of the Agree-
ment on Cooperation of the State Parties of the Commonwealth of Independent States
in Fight against Crimes in the Field of Computer Information, emphasizing that
various countries, regardless of the development level of information and communi-
cation technologies, must ensure cooperation in the field of information security on
equal terms. Meanwhile, scientific community, experts and non-governmental orga-
nizations in various countries should contribute to solving the issues of information
security to varying degrees.
8.2.4 With the Threat to the Vulnerable Groups,

the Protection of Children’s Rights and Interests
Becomes the Central Issue
In June 2021, the U.N. Secretary General António Guterres announced “Roadmap for
Digital Cooperation”, promoting digital technology to benefit all people in an equal
and safe manner. Digital divide will worsen the social and economic disadvantages
of women, children, the disabled and various minority groups. How to protect the
rights and interests of the vulnerable groups means a concern of various countries.
In this sense, various countries should create a safe and healthy cyber environment
for children to meet new requirements of the digital era.
According to the statistics of Japanese National Police Agency, in 2020, Japanese
police ferreted out 9,875 cases of cybercrimes, of which 1,438 cases ran counter
to The Law on the Prohibition of the Purchase of Sexual Services and Pornog-
raphy Against Children and 1,013 cases to The Regulations on the Protection and
Upbringing of Teenagers. In March 2021, the U.N. Committee on the Rights of the
Child convoked a meeting in Geneva. The meeting clarified legal guidance (docu-
ment) on how various countries should protect children’s rights in the digital envi-
ronment, emphasizing that every child’s rights in the digital environment must be
respected, protected and realized, and that children got access to digital content and
information that tallied with their age and empowered them via a wide range of
diverse and reliable sources.
The COVID-19 pandemic popularized children’s use of Internet at home. Interna-
tional community endeavored to curb the violence of cyber bullying on adolescents.
Noteworthily, measures to fill the gaps in original system proved more effective. The
United States attaches special attention to information security when children use
Internet. The United States successively issued Children’s Internet Protection Act
8.3 The Awareness of Cyber Sovereignty Is Enhanced and the Rule-of-Law … 179
and Children’s Online Privacy Protection Act. In September 2020, the U.S. House of
Representatives introduced Kids Internet Design and Safety Act, which proposed that
operators of child-oriented Internet platforms should be prohibited from publicizing
cyber violence, sexual behavior and other content, or using age-verification informa-
tion of children users for commercial purposes. If online services were targeted at
juveniles, Kids Internet Design and Safety Act would prevent the collection of any
data. In May 2021, the United Kingdom made special provisions on the compul-
sory security services available to children in various chapters of Online Safety Bill
(Draft). In April 2021, France formally carried out The Act on the Management of
Commercial Development of Children’s Video on Online Platforms, which built a
regulatory framework for minors in the field of Internet video. The Act stipulated
that if the videos of minors were proved to be of a work nature, these minors must be
protected by relevant laws on minors’ engaging in performing and modeling work,
and their parents must obtain relevant permission or report the above-stated work.
Additionally, the Act required video platforms and social institutions to jointly crack
down on commercial activities of illegally using minors’ videos. The Act specif-
ically spotlighted that when minors would request video platforms to delete what
they made, video platforms must permanently delete the content without parental
consent.
8.3 The Awareness of Cyber Sovereignty Is Enhanced

and the Rule-of-Law Protection of Cyber Sovereignty Is
Strengthened
As national competition in cyberspace intensifies, various countries contend for

and hold onto a dominant position in cyberspace, with the awareness of national
cyber sovereignty constantly enhanced. In particular, against the background of
frequent cyber-sovereignty-risk incidents, in order to appropriately safeguard their
sovereignty security and development interests, countries deepen and optimize the
legislation on cybersecurity and data security, which drives the diversified develop-
ment of the legal protection of cybersecurity to a certain extent. Besides, large-
scale network technology corporations expand their influences in international
competition, which catalyzes new rules and new orders of pluralistic coexistence.
8.3.1 Cybersecurity Risk Is Continuously Aggravated

and the Awareness of Cyber Sovereignty is Significantly
Improved
In the past year, cyberattack, cyber espionage and cybercrime occurred frequently in
the world. The improper collection and use of various types of information data
by enterprises and other entities seriously imperiled data security and personal-
information security, and posed a continuous major threat to the country, enterprises
and society. In the field of political and national security, in 2021, 360 Security Brain
captured the 11-year-long cyberattack or cyber penetration targeted at China from
APT-C-39, an attack organization of the U.S. Central Intelligence Agency (CIA). In
the field of economic and industrial development, in May 2021, the United States
declared a state of national emergency for the first time owing to a cyberattack. The
reason lied in that hackers attacked Colonial Pipeline, the largest refined-oil-pipeline
operator in the United States, forcing it to shut down the entire energy-supply network
for a time. The cyberattack on Colonial Pipeline immensely affected the supply of
fuel oil and other energy on the east coast of the United States and historically marked
the most serious cyberattack on the American energy system. As these cybersecurity-
risk incidents evidence, national sovereignty security becomes the heart of the matter.
(There are mainly two reasons.) Faced with increasingly severe international land-
scape and competition environment, various countries need to fortify their compet-
itiveness in reality. More deeply, several countries with hegemony in cyberspace
intentionally pursue hegemonism and power politics, which wreaks havoc on the
opportunities for other countries to express national will and govern cyberspace
equally. Therefore, various countries in the world lay more emphasis on the role
of cyberspace sovereignty in their sovereignty systems, and significantly heighten
the awareness of cyber sovereignty. They also take measures in policy-regulation,
legislation and law-enforcement to safeguard their own cyberspace sovereignty.
Countries in the world continue to optimize top-level design and launch new
guiding strategies or action guidelines. In March 2021, the U.S. government released
Interim National Security Strategic Guidance, which provided guidance for various
departments and institutions in the formulation of national security strategies. The
Guidance proposed to list cybersecurity as the first priority of national security, in
order to enhance America’s capability, readiness and resilience in cyberspace. In the
competition among major countries that focuses on the innovative IT development
and digital space, the European Union intends to regain its dominance and leadership
and strengthen its digital competitiveness. In March 2021, the European Commission
officially released 2030 Digital Compass: The European Way for the Digital Decade,
which aimed to direct the digital-transformation vision of EU’s digital sovereignty
by 2030 and construct a people-oriented and sustainable digital society. Against
the backdrop of severe cyber threats, digital challenges and Tokyo 2020 Olympic
Games, Japanese National Center of Incident Readiness and Strategy for Cybersecu-
rity (NISC) published Next Generation Cybersecurity Strategy Outline and Cyberse-
curity Research and Development Strategy in May 2021, to further the construction
of digital society, build a cyber defense system and establish free, public and safe
cyberspace. In its document on military-modernization strategies, British govern-
ment promised that it would increase investment in national defense by 14% in next
four years, upgrade cyber weapons globally and research and develop advanced tech-
nologies. Notably, facing increasingly-cutthroat competition in cyberspace, various
countries generally adopt more proactive cyberspace strategies, and reinforce capital
investment, talent training, institution and mechanism support, with the emphasis on
enlarging their influence in cyberspace.
8.3 The Awareness of Cyber Sovereignty Is Enhanced and the Rule-of-Law … 181
Under the guidance of strategic planning, various countries all advance legisla-
tive work for the purposes of national security, commercial interests, as well as the
protection of citizens’ privacy, so as to safeguard cyber sovereignty and cyberse-
curity. In May 2021, Germany’s Communication Security Act 2.0 officially came
into effect. By correcting legal loopholes and expanding supervision scope, the Act
2.0 improved the security of German IT systems and strengthened national security.
It further augmented the authority of Bundesamt für Sicherheit in der Information-
stechnik (BSI) and offered more substantial normative basis for effective supervision.
In May 2021, U.S. President Biden signed Executive Order on Improving the Nation’s
Cybersecurity to strengthen America’s governance capacity of national data security.
Admittedly, cyberspace releases new momentum for development; yet, it exacerbates
digital divide and security risk therefrom. That cyber sovereignty ideologically takes
shape helps to build new order of cyberspace governance featuring justice, reason-
ableness and equality, and lead more countries to the peaceful path of cyberspace
development.
8.3.2 Data-Security Risks Multiply and Legal-Protection

Forms Diversify
Data becomes basic strategic resource for which various countries vie. With regard
to data sovereignty, Tallinn Manual 2.0 holds the view that a country has jurisdiction
over the data stored in its territory and its network infrastructure, or the data with an
important connection with the country per se. However, opinions vary on whether
a country has jurisdiction over the data transmitted via its territory. Most experts
consider that a country does not have sovereignty over this part of data.
In the past year, governments of various countries have commonly realized that
data served as a major factor closely related to national security and international
competitiveness, with their cognition of data security from traditionally protecting
personal privacy to safeguarding national security. In June 2021, China voted to adopt
The Data Security Law of the People’s Republic of China (The Data Security Law for
short). As a special law that ensures national data security, The Data Security Law
and The Cybersecurity Law (i.e. The Cybersecurity Law of the People’s Republic of
China) constitute a national data-security governance system, signifying that data
security in China has risen to the level of holistic approach to national security and
linked up with national security.
In February 2020, the European Commission released a series of strategic plans on
“shaping the digital future of Europe”, including A European Strategy for Data, which
covered the development and legislative framework in the fields of data utilization, AI
and platform governance. As a supporting act of EU’s digital strategy, in November
2020, the European Union published the proposal of Data Governance Act. On the
basis of the policy of “European Common Data Space”, the proposal proceeded to
establish a unified architecture for the secondary use of public data that involved
the other party’s rights, so as to build a “Digital Single Market” that covered health,
transportation, manufacturing, financial services, energy and agriculture. In general,
the European Union attaches great importance to data governance in EU member

states, and strengthens data sharing mechanism in EU member states by policy-
related and legal means, in order to promote the availability of data and further
guarantee data security and digital sovereignty in the European Union.
Canada proposed Digital Charter Implementation Act 2020 at the end of 2020,
which provided a modern framework for protecting personal information in private
sectors. Specifically, it provides that: when enterprises process personal information
of Canadian citizens, they must improve controllability and transparency; Canadian
citizens are given the freedom to transfer their information from one organization
to another in a secure way; Canadian citizens are assured of the right to delete their
information; privacy commissioners are given a wide range of order making rights,
including the right to force organizations to comply with regulations and the right to
order enterprises to stop collecting data or using personal information. In September
2020, Brazilian General Data Protection Law came into effect. Simultaneously,
Brazilian government approved the establishment of a national data protection agency
that would be responsible for the implementation of the Law, requiring organizations
processing data to establish corresponding mechanisms for processing personal data
in Brazil and obey the restrictions on cross-border data transmission.
In New Zealand, Privacy Act took effect in December 2020, which replaced
Privacy Act issued in 1993. The newly-published Privacy Act is applicable to organi-
zations that collect personal information in their businesses in New Zealand, requiring
enterprises that collect personal data to notify the affected individuals and the Office
of Privacy Commissioner (OPC) in case of privacy leakage. Otherwise, each viola-
tion will result in a severe penalty of up to 10,000 New Zealand dollars. In June
2020, Japan promulgated the Amendments to the Act on the Protection of Personal
Information, which would officially come into force on April 1, 2022. The amended
Act presents the latest trend in the protection of personal information in Japan. As
required, when Japanese operators provide personal-information data to foreign oper-
ators, they need to obtain the consent of individuals and inform individuals of rele-
vant regulations on the protection of personal information in foreign countries, and
foreign operators need to take measures equivalent to these on the protection of
personal information taken in Japan.
8.3.3 Discourse Power in Cyberspace Becomes More

Important and the Game on International Cooperation
Continues in Cyberspace Governance
International cooperation in cyberspace governance means a right choice to adapt to

general trends of cyberspace development and globalization. Notwithstanding, some
powerful countries that master cutting-edge technologies in cyberspace always seek
for hegemonic position in global cyberspace and compete for network power, which
challenges global order in cyberspace governance and has a negative impact on
8.4 The Competition in Cyber Economy Intensifies and Cyber-Platform … 183
the peaceful development of Internet. In April 2021, the U.S. Senate Committee
on Foreign Relations deliberated and adopted The Strategic Competition Act of
2021, which fueled America’s diplomatic strategy in big-power competition and
made cyberspace a new battlefield for the United States to maintain global lead-
ership and lead the formulation of global rules. With the Act, the United States
practices the strategy of big-power competition in various fields and establishes an
America-centered international value system, which goes against the basic principles
of cooperative governance.
In the process of cooperative governance, the importance of the United Nations
framework becomes more prominent. The United Nations coordinates issues
concerning global governance in cyberspace, in various areas like cyberspace peace,
cyber sovereignty and digital economy. The U.N. Secretary General António Guterres
attaches much attention to digital issues. The U.N. High-Level Panel on Digital Coop-
eration is committed to boosting and buttressing cooperation among governments,
private sectors, civil society, international organizations, industrial circle, academia
and other stakeholders in cyberspace and digital space. Currently, with new driving
force and legality, the United Nations re-organizes original disintegrated dialogue
mechanism and sets an agenda for digital cooperation and cyberspace peace in the
2020s.
8.4 The Competition in Cyber Economy Intensifies

and Cyber-Platform Governance Becomes a Major
Field
In order to promote the normal operation of cyber economy, various countries have
explored the experience of cyber-platform governance. In particular, antitrust in
cyber platforms arouses wide attention. The legislation in this regard is continuously
strengthened, and the merger rules of platform enterprises are strictly restricted.
Antitrust investigations and penalties against large platforms represented by Google,
Amazon and Facebook are increasingly reinforced. As platform economy develops
robustly, the number of employees shoots up yet the protection of their rights and
interests lag behind. Therefore, in various countries, employees are given preferential
protection in the legislative and judicial work.
8.4.1 Cyber Economy Thrives and the Legislation

on Antitrust Against Platform Continually Strengthens
Various countries pay great attention to antitrust against cyber platforms. For instance,
Australian Competition and Consumer Commission (ACCC) listed the antitrust issue
of digital platforms as the key work and first priority in 2021. In January 2021,
Germany passed The Amendment to Act Against Restraints of Competition (Digital

Competition Law 4.0), which strengthened the regulatory authority against plat-
forms by warranting new law-enforcement power, significantly raised the turnover
threshold of enterprises applying for mergers and acquisitions, introduced new tools
for digital gatekeepers, and revised the punishment rules for monopolistic behav-
iors. In June 2021, the U.S. House of Representatives launched a number of antitrust
acts, such as Ending Platform Monopolies Act, The American Innovation and Choice
Online Act, Platform Competition and Opportunity Act and Augmenting Compati-
bility and Competition by Enabling Service Switching Act. These acts meant a major
change to existent antitrust legislation in the United States, whose content proved
detrimental to many large-scale cyber platforms.
In the merger regulation for platform enterprises, in September 2020, the European
Union revised relevant provisions in The EU Corporate Merger Control Regulations
to strengthen the review standards for merger transactions that failed to meet the
declaration standards of EU member states. In December 2020, the European Union
published Digital Markets Act (Draft), which reinforced the prior supervision of
large-scale digital platforms and required platforms to notify the mergers and acqui-
sitions in advance. In December 2020, British Competition and Markets Authority
(CMA) also proposed to adopt harsh merger rules for platform enterprises, including
a wide range of prior notification obligations and the determination of mandatory
declaration threshold standards. In June 2021, the United States released Platform
Competition and Opportunity Act, which stipulated that unless platforms can prove
that the acquired enterprises would not compete with existing products or services
on platforms, no merger in any form would be allowed.
As a global ticklish problem, antitrust against platform calls for ameliorating the
legislation on antitrust against platform and applying multiple means like the super-
vision of administrative law-enforcement, the optimization of judicial-judgment and
the encouragement of platforms’ self-discipline in a comprehensive way. In the past
year, Google was the target in the antitrust in Europe, America and Australia. In
October 2020, the U.S. Department of Justice (DOJ) as well as the attorneys-general
of 11 states filed an antitrust lawsuit against Google. At the end of 2020, British
Competition and Markets Authority started an antitrust investigation on Google and
announced the establishment of Digital Markets Taskforce, so as to better supervise
and regulate platform competition. Daily Mail in the United Kingdom took legal
action against Google, on the grounds that Google manipulated search results and
conducted unfair competition. In January 2021, Australian government adopted News
Media and Digital Platforms Mandatory Bargaining Code, which required Google
to pay fees for sharing or using news content on platforms. In June 2021, Autorite de
la Concurrence in France ruled that Google abused its dominant position in online
advertising market, imposing a fine of 220 million euros on Google.
8.4 The Competition in Cyber Economy Intensifies and Cyber-Platform … 185
8.4.2 Employees in Cyber Economy Balloon,

with the Employment Responsibility of Platform Put
on the Agenda
As an emerging product of Internet economy, platform employment features unique

flexibility, low security and high risks, making the protection of employees’ rights and
interests a hot topic that arouses widespread concern. According to judicial decisions
in various countries, the courts tend to identify platform practitioners with employees.
Cour de Cassation in France ruled that Uber drivers were regular employees of Uber
platform. Shortly afterwards, in September 2020, Supreme Court of the United States
adjudicated that workers of Glove, a food-delivery software, were Glove employees.
In January 2021, Supreme Court of the United Kingdom decided that Uber drivers
were employees rather than self-employed workers or contractors, who enjoyed basic
rights and guarantees such as minimum wage and paid leave.
Globally, the employment responsibility of platforms will be carried out more
sternly, and employees be given preferential protection in the legislative work.
Legislatively, in March 2021, Spain amended the Labor Law, which treated food-
delivery workers as employees and promoted their inclusion in the contract frame-
work, in a bid to realize that they can enjoy corresponding social security as ordinary
workers. Likewise, the European Commission released relevant legislative proposals
in 2021, provided solutions to possible labor disputes, and planned to establish a
regulatory framework that covered EU member states by the end of 2021. Yet, in
this regard, the introduction of relevant laws and regulations plays a limited role,
which means an arduous task to undertake. Besides, various countries take uneven
measures in preferentially protecting platform employees. In November 2020, State
of California of the United States passed Proposition 22 thanks to the heavy invest-
ment from large corporations. On the identity of platform workers, Proposition 22
replaced Assembly Bill 5 (AB5) that took effect at the beginning of 2020 and made
delivery workers and platform drivers lose their original employee status and become
independent contractors.
8.4.3 The Rights and Interests of Network Users Are

Damaged and the Accountability of Platform Tort Is
Gradually Conducted
In the past year, a new trend appeared in the development of the accountability
of platform tort. In February 2021, the U.S. Senate proposed Secure Technology
Act. As an amendment to Section 230 of the Communications Decency Act, Secure
Technology Act mainly contains: deleting the immunities of platforms in the case of
payments, adding the burden of proof of cyber platforms, platforms bearing more
civil liabilities in some cases, and allowing victims to file lawsuits against platforms
in the case of being tailed or harassed. Compared with original Section 230, the
new Act sets the boundaries of liability immunity and adds the excluded objects of
immunity.
In March 2021, State of Oklahoma of the United States approved Oklahoma
Computer Data Privacy Act, which required that platforms shall not discriminate
against consumers due to the exercise of their rights, and that the collection of
consumer information must be authorized in a clear and obvious manner, on the
premise of not damaging or hindering their decision-making. The Act exempted
some small enterprises from their obligations to comply with the Act. Simultane-
ously, Commonwealth of Virginia of the United States adopted Consumer Data
Protection Act, which authorized the attorney-general of Commonwealth of Virginia
to take charge of implementing the Act and investigating and punishing violations.
However, the Act did not warrant private right of action. In line with Consumer
Data Protection Act, the U.S. Federal Trade Commission (FTC) banned enterprises
from using biased AI technologies. In May 2021, the U.S. Senate presented Social
Media Privacy Protection and Consumer Rights Act, which gave users greater data
control rights and stipulated that platforms shall notify users within 72 h in case of
website-data leakage. Since Facebook conducted face recognition and collected and
stored relevant data without consent, State of Illinois of the United States reached a
settlement agreement with Facebook in 2021. Accordingly, Facebook bore a series of
responsibilities, including closing the default setting of face recognition and deleting
the existent and stored face templates unless obtaining additional explicit consent.
In December 2020, the European Union published Digital Services Act (Draft). In
terms of platform liability, the Act sets greater transparency as well as accountability
standards in controlling content and advertisement by establishing a horizontal rule
mechanism. The Act stipulates that platforms have the obligation to assess system
risks and develop risk-management tools and measures, so as to advance service
integrity. As provided, any users have the right to mark illegal content of platforms
and to raise objections to platforms in a direct way or via non-judicial settlement
mechanisms. If the rights and interests of users are damaged, users can launch class
action against platforms. In this way, relief-in-the-form-money becomes the preferred
means of users and the best way to force platforms to abide by laws.
8.5 Emerging Technologies Empower Network Industry,

with Security Measures Timely Following up
The emergence and application of emerging technologies like face recognition, algo-
rithm, blockchain and digital currency often coexist with legislation and regula-
tion. The legislation on biometric information continuously improves and becomes
more rigorous, which prevents potential risks of information abuse. In response to
privacy infringement that arises from the frequent use of algorithmic technology,
two systems take shape, i.e. data-processing-evaluation system and algorithm-
accountability system represented by the European Union and the United States
8.5 Emerging Technologies Empower Network Industry, with Security … 187
respectively. Besides, algorithm governance matures. As an outcome of digital

economy, blockchain technology and digital currency become a hot topic in global
cooperation and regulation.
8.5.1 Faced with the Misuse of Biometric Information,

the Legislation on Information Protection Makes
Positive Response
In 2020, the United States issued National Biometric Information Privacy Act, which
stipulated that relevant organizations must obtain personal consent before collecting
or exposing biometric information. Subsequently, other states in the United States
have promulgated more general biometric data protection laws that involve the collec-
tion, processing and use of personal biometric data. The European Union, a region
with stringent biometric-information-protection regulations, enacts General Data
Protection Regulation (GDPR), which protects the use of personal biometric infor-
mation in the workplace to a certain degree. For example, Portugal, an EU member
state, prohibits the establishment of databases on personal biometric information,
which plays a prominent role in face-recognition camera, workplace protection and
special legal protection. The Civil Code of the People’s Republic of China rules that
personal information of natural persons is protected by law. Personal information
denotes all kinds of information of specific natural persons recorded in electronic or
other ways that can be identified independently or in combination with other infor-
mation, including the name, date of birth, ID card number, biometric information,
address, telephone number, e-mail, health condition and whereabouts information of
natural persons.
8.5.2 Algorithm Push Endangers Privacy

and Algorithm-Governance System Gradually Improves
Algorithmic technology is widely used in all aspects of social life, and the risks to
citizens’ privacy and other personal rights are noteworthy. For example, credit eval-
uation algorithm closes the door on the vulnerable groups when they apply for loans.
The hierarchic treatment and accurate portrait of people by algorithm will aggravate
economic, cultural and social isolation and discrimination. Sexual discrimination is
disclosed in the algorithm of LinkedIn, an American employment platform, where
the number of high-paid jobs recommended to women is only one tenth of that
of men. A survey conducted by American non-governmental organizations reveals
that COMPAS sentencing-assistance algorithm widely used in various states has
systematic discrimination against blacks.
The European Union specially establishes a Data Protection Impact Assessment

(DPIA). In case that new technologies are used to process data, if the nature, scope,
content and purpose of the processing may cause high risks to the rights and liberties
of natural persons, data controllers shall assess the impact of data processing on
personal data protection, so as to identify and reduce the risk of privacy leakage in
advance. Data controllers who fail to fully assess data processing will be viewed as
against General Data Protection Regulation and fined 2% of annual global turnover
of their organizations or 10 million euros (subject to higher level).
Unlike EU’s General Data Protection Regulation, Algorithmic Accountability Act
and Smartwatch Data Act of the United States prohibit enterprises from transferring
or selling health information from personal consumer devices (e.g. wearable devices
and trackers) without the informed consent of consumers.
8.5.3 The Application of Blockchain Enlarges and Industrial

Regulatory System Takes Effect
Global blockchain regulations attain remarkable progress. By May 2021, various

countries in the world had launched 238 policies in the field of blockchain. Industrial
development, Central Bank Digital Currencies (CBDC) and financial supervision
were central issues, accounting for 33%, 20% and 17% respectively. Regions that
issue special laws and regulations focus on regulatory suggestions and precedents in
giving guidance or interpretation, and tend to update existing laws and regulations
or formulate new ones. In regulatory areas, the number of policies concerning the
operation, issuance and trading of digital assets is the largest. Regulatory policies
that take traditional policies into account basically center on anti-money laundering
and taxation. Presently, more countries in the world have recognized the value of
blockchain in the era of digital economy and enhanced the support for blockchain
technology. As a major means to foster digital economic growth, blockchain quickly
develops and widely influences all areas of real economy. In 2021, innovative appli-
cation and policy support remained an important driving force for the development
of blockchain. The coordinated development of new technologies like blockchain,
5G, AI and IoT facilitates industrial development.
Chapter 9
International Cyberspace Governance
9.1 Outline
In 2021, the normalization of the prevention and control of the COVID-19 pandemic
affected global cyberspace in an all-round and far-reaching way. For a country, its
digital development level plays a decisive role in shaping its advantages in interna-
tional competition. In terms of digital transformation, many countries and regions
put these issues at the top of the agenda, i.e. developing digital economy, ensuring
cybersecurity, building digital government, cultivating digital skills and improving
digital governance.
International order in cyberspace is reshaped fast, and the debate on international
rules in cyberspace is considered the most active emerging field. The U.N. Infor-
mation Security Group of Governmental Experts (GGE) and Open-Ended Working
Group (OEWG) make phased progress in twin-track negotiation. The debate on
digital economy, data security, platform governance, technology governance, ICT
supply-chain security and other issues continues to heat up. Antitrust governance
against large-scale digital platforms enters the “fast lane”, and the demand for rele-
vant international rules keeps growing. Noticeably, the trend of fragmentation in
cyberspace continues, and the absence of international rules causes more prominent
problems. With absolute advantages in cyberspace, the United States incessantly
dominates international policies with domestic politics and adopts exclusive poli-
cies to split cyberspace. The European Union strengthens strategic autonomy in
cyberspace. Against the backdrop of the competition among great powers, geopol-
itics breeds new digital divide, which aggravates the imbalance of world Internet
development. Moreover, public resources in global cyberspace becomes increas-
ingly scarce and uneven. China upholds the principles of “Good-Neighborliness and
Friendly Cooperation”, advances the idea of “a community with a shared future
in cyberspace” ideologically and practically, and gradually benefits neighboring
countries. The idea of cyber sovereignty becomes the consensus of international
community. Many countries proactively explore cyber sovereignty theoretically and

https://doi.org/10.1007/978-981-19-9323-7_9
190 9 International Cyberspace Governance
practically. As international landscape becomes increasingly complex, green digital

cooperation provides new opportunities for international cyberspace governance.
Actors like governments, international organizations, enterprises, social organiza-
tions and individual citizens have an active part in green digital cooperation and seek
new paths for building “a community with a shared future in cyberspace”.
9.2 Main Features of Annual International Cyberspace

Governance
The normalization of the prevention and control of the COVID-19 pandemic deeply
tests the governance capacity of different parties. In various countries, the demand
for digital development and digital governance increases significantly. In particular,
developing countries display a strong momentum of digital transformation. Mean-
while, cyberspace is glutted with unilateralism and bullying. With challenges to
formulate international rules in cyberspace and build cyberspace governance systems,
trust mechanism in cyberspace urgently needs to be established and improved.
9.2.1 Under the Normalization of Pandemic Prevention

and Control, the Demand for Digital Development
and Governance Surges
New-round information revolution results in radical changes in social productivity

and relation of production, which comprehensively enters and profoundly affects
human social life. Various countries in the world realize the importance of key tech-
nological innovation in the field of information, vie for a dominant position in tech-
nological innovation, and vigorously promote the development of digital technology
and industry, so as to boost economic recovery. The United States, the European
Union, Japan, Israel and other countries and regions increase investment in the R&D
of AI and quantum technology, accelerate the integration of “production, university
and research”, and improve the efficiency of technological R&D. Semiconductor
industry shows a trend of alliance. The United States, South Korea, Japan and other
countries strengthen the strategic design of semiconductor industry and enhance chip-
manufacturing capacity by establishing industrial alliances. India, Brazil, Kenya and
other developing countries quicken the test, experiment and service of 5G tech-
nology. ASEAN countries expedite digital transformation, with new business forms
like e-commerce and digital trading maintaining a strong momentum.
Simultaneously, the potential risks of global cybersecurity are growing, as are
the scale and intensity of cyberattacks on critical infrastructure. Major countries in
the world continuously strengthen cybersecurity capacity. With the further expan-
sion of large-scale digital platforms, the phenomenon of platform monopoly poses
9.2 Main Features of Annual International Cyberspace Governance 191
a challenge to social order, national order and even global order, arousing wide
concern among governments. A consensus is gradually reached in the regulation
of digital platforms. Governments of the United States, the European Union, the
United Kingdom and other countries and regions successively optimize regulatory
legislation, stage antitrust investigations, and take measures to curb digital-platform
monopoly. In terms of governance subject, the role and function of government in
cyberspace governance are continuously intensified. In the meantime, international
organizations and technological communities, e.g. the United Nations and Internet
Corporation for Assigned Names and Numbers (ICANN), take untiring efforts to
address governance issues. The participation degree of non-state actors like Internet
enterprises and non-governmental organizations in governance constantly expands.
9.2.2 Geopolitics Catalyzes and Enlarges New Digital Divide
Traditional digital divide comes from objective digital differences among countries;
yet, new digital divide arises from non-technological factors, man-made political
kidnapping and digital barriers. Some countries attempt to split cyberspace and
create distrust, which prevents other countries from enjoying the achievements in
digital innovation and inclusive development and reduces the opportunities for digital
transformation and mutual assistance among countries in conflicts and disputes.
Competition among powers in cyberspace intensifies, unilateralism and protec-
tionism continue to rage, and data-security issues become increasingly politicized.
The United States and other countries intentionally create digital barriers, restrict
or prohibit foreign digital hardware equipment and software service providers from
doing business in domestic markets, and threaten to block so-called “unsafe” enter-
prises of foreign countries without conclusive evidence. These actions impede inter-
national cooperation in digital area conducted among countries based on mutual trust,
deepen political misunderstanding among countries, restrict the inclusive develop-
ment of informatization, create new digital divide, further plunge cyberspace into a
state of instability and uncertainty, and aggravate the crisis of fragmentation.
Old and new digital divides coalesce and produce a compounding effect, which
worsens the imbalance of global digital development. Particularly, citizens in devel-
oping countries can hardly enjoy the dividends from digital development. In the report
Measuring Digital Development: Facts and Figures 2020, International Telecommu-
nication Union stressed that in the spread of the COVID-19 pandemic, the imbalance
of digital development between developed and developing countries became increas-
ingly prominent. Notably, the slowdown of infrastructure construction and the lack
of affordable prices were major obstacles to citizens’ fair participation in digital
society.1 In the new era, governance, trust, peace and development complement each
other and form an organic ensemble, which functions as an important means to build
the Internet, common home of human. As important actors in cyberspace, various
1 ITU: Measuring digital development: Facts and Figs. 2020.

governments should make more active, comprehensive, coordinated and inclusive

policies, explore the establishment of trust mechanism in cyberspace, safeguard fair-
ness and justice, address the dilemma of digital divide in an effective way, and share
digital dividend.
9.2.3 Technological Politicization Threatens Supply-Chain

Security
Currently, international community attaches great importance to the security gover-

nance of the ICT supply chain. Actors like governments, international organiza-
tions, technological communities and industrial organizations actively put forward
governance plans and paths. More countries acknowledge that the security of the
ICT supply chain is bound to national security. The review of supply-chain secu-
rity is tightened up, and more specific policies are introduced to strengthen the risk
management of supply chains and improve the resilience, diversity and security of
supply chains. For example, the Biden Administration released Executive Order on
America’s Supply Chains, instructing federal agencies to review the security risks
of supply chains in various industries (including information technology),2 estab-
lish departments like “Supply Chain Trade Action Group”, and adopt an all-round
strategy to fortify the resilience of American supply chains. Singapore initiates SG
Cyber Safe Trustmark Program to standardize corporate cybersecurity capability
certification. Australian Cyber Security Centre published Guideline on Identifying
and Managing Supply Chain Risks. The United Nations makes continuous efforts
to promote the rules on the security of the IT supply chain. In May 2021, the U.N.
Information Security Group of Governmental Experts formed a final report, calling
on various countries to take reasonable measures to ensure the integrity of supply
chains. The report embraced important propositions in China’s Global Initiative on
Data Security and China-League of Arab States Cooperation Initiative on Data Secu-
rity, including promoting the openness, integrity, security and stability of global IT-
product supply chains, advocating the establishment of comprehensive, transparent,
objective and fair supply-chain security-risk assessment mechanisms in various coun-
tries, and forging global uniform rules and standards. Academia, business circles and
industrial associations actively offer suggestions and ideas to lower security risks of
supply chain. For example, the U.S. Software Alliance released the white paper
Building a More Effective Strategy for ICT Supply Chain Security, calling on the
U.S. government to reduce supply chain risks and boost the trust and security in
the global ICT supply chain.3 EastWest Institute, working with Kenyan Information
2 The official website of the White House: Executive Order on America’s Supply Chains, February
24, 2021, https://www.whitehouse. gov/briefing-room/presidential-actions/2021/02/24/executive-
order-on-americas-supply-chains/.
3 Material Source: Building a More Effective Strategy for ICT Supply Chain Security, https://www.
bsa.org/files/policy-filings/02162021supplychainsecurity.pdf.
9.2 Main Features of Annual International Cyberspace Governance 193
and Communications Technologies Authority and Kaspersky Lab, hosted the 15th
United Nations Internet Governance Forum (IGF) Seminar, which focused on the
security and transparency of the ICT supply chain.4
The security governance of the ICT supply chain per se means an objective and
pure technological issue. However, some countries attach many geopolitical consid-
erations to the issue of technological risks, whose politicized measures are highly
controversial. For example, the United States continues to restrict Huawei’s 5G
technology even though Huawei has passed the review of German security agen-
cies which proves that Huawei’s equipment has no security problems. The United
Kingdom launches Telecommunications (Security) Act, which explicitly prohibits
Huawei from participating in British 5G mobile networks. On the premise of fair-
ness, impartiality and non-discrimination, international community should jointly
investigate and formulate international norms for safeguarding ICT supply chain
security via multilateral platforms with universal participation of all parties, and take
appropriate measures to improve the security and controllability of products and
services.
9.2.4 Green Digital Cooperation Invigorates International

Cyberspace Governance
As a significant issue, how to address climate change arouses in-depth discussion

among various parties. Countries and regions like the United States, China, Japan
and the European Union have successively introduced carbon neutrality policies
and goals, and carbon neutrality has become a global trend. Reaching consensus on
addressing climate crisis, China and the United States published China-U.S. Joint
Statement Addressing the Climate Crisis in April 2021. China and the European
Union propose to build China-EU Green Partnership and China-EU Digital Cooper-
ation Partnership. Both sides have taken active actions in green digital development.
China energetically promotes the construction of green data centers and proposes
to accelerate the R&D and application of energy-saving and low-carbon technolo-
gies to reduce the energy consumption of data centers. In “Digital Day 2021”, the
European Union requested its member states to sign commitments on data, start-ups
and EU’s green and digital transformation. Besides, enterprises play an active role
in achieving green digital development. 26 major European telecom operators like
Deutsche Telekom (Germany) and Telefónica (Spain) organize the European Green
Digital Coalition, which promises to invest in the development and deployment of
more energy-saving and material-saving digital technologies and services, and to
step up efforts to measure the impact of digital technologies on the environment.
Microsoft, Amazon and other corporations agree that they will realize the 100%-use
of renewable energy by 2025. Chinese corporations like Huawei and Tencent also
4Material Source: https://www.eastwest.ngo/idea/ewi-hosts-virtual-un-igf-workshop-ict-supply-

chain-security.
launch relevant carbon neutrality plans to reduce carbon emissions in smart energy,
smart agriculture and smart travel. With respect to the governance of public issues
in cyberspace, international organizations, governments, enterprises, individuals and
other actors bear the responsibility and obligation to participate in governance. They
need to play their respective roles in building “a community with a shared future in
cyberspace” and jointly solving global governance deficit.
9.3 New Progress in International Cyberspace Governance
As new risks, problems and challenges continuously emerge in cyberspace, the topic
of international cyberspace governance steadily expands. The discussion on interna-
tional norms in cyberspace continues to advance, and various entities actively explore
governance in digital currency, data security, platform supervision and AI, with the
importance of international cooperation becoming increasingly prominent.
9.3.1 The Formulation of International Rules in Cyberspace

Continues to Advance
As an important platform for the discussion of cyberspace rules, the United Nations
has played a crucial role. The U.N. Information Security Open-Ended Working Group
(OEWG) and Group of Governmental Experts (GGE) have released final reports
respectively. In March 2021, the final report of OEWG reaffirmed the applicability
of international law, especially Charter of the United Nations, in cyberspace, under-
scoring that the principles of international law, e.g. national sovereignty, sovereignty
equality, non-interference in internal affairs and peaceful settlement of international
disputes, are applicable to cyberspace. From 2021 to 2025, the U.N. OEWG will
continue to discuss issues such as information security, technology security and use
and national codes of conduct, and submit reports to the United Nations General
Assembly.5 In May 2021, the final report of the U.N. GGE put forward 11 sugges-
tions on national codes of conduct in cyberspace, which covered the peaceful use of
ICT, state responsibility, ICT service-supply-chain security, international coopera-
tion in cyberspace and capacity building.6 Regrettably, no consensus has been reached
among various parties on the applicability of international humanitarian law, state
responsibility, the prohibition or threat of use of force and the right of self-defense
in cyberspace. Simultaneously, Germany, Israel, Japan and other countries publish
5 Material Source: https://front.un-arm.org/wp-content/uploads/2021/03/Final-report-A-AC.290-

2021-CRP.2.pdf.
6 Material Source: Report of the Group of Governmental Experts on Advancing responsible State
behaviour in cyberspace in the context of international security, https://front.un-arm.org/wp-con

tent/uploads/2021/06/final-report-2019–2021-gge-1-advance-copy.pdf.
9.3 New Progress in International Cyberspace Governance 195
position papers on the applicability of international law in cyberspace, and reassert

their rules and positions in cyberspace. In the face of increasing cybersecurity threats,
in June 2021, the United Nations Security Council held the first public meeting on
cybersecurity. Representatives of 15 members of the United Nations Security Council
emphasized that cyberspace was bound by international law, including Charter of the
United Nations and the principle of national sovereignty, and called for cooperation
to address cybersecurity threats and challenges.7
In combating cybercrimes, in April 2021, the U.N. Cybercrime Group of Govern-
mental Experts organized the seventh meeting to discuss the legislative framework of
cybercrime, criminalization, law-enforcement and investigation, electronic evidence
and criminal judicature, international cooperation and crime prevention. In May
2021, the United Nations officially announced that it would start the negotiation of
The United Nations Convention Against Cybercrime in January 2022 and establish
an ad hoc committee to draft and negotiate the Convention. However, there are diver-
gences on the role of the ad hoc committee and a panel of governmental experts on
cybercrime as well as the necessity to formulate a new convention.
Additionally, non-state actors enthusiastically participate in the formulation of
international rules in cyberspace. At the beginning of 2021, NATO Cooperative Cyber
Defence Centre of Excellence announced the official launch of the compilation of
Tallinn Manual 3.0. It would organize an international expert group to further discuss
how to apply international law to cyberspace and formulate the latest manual guide.
9.3.2 Global Digital Currency Accelerates Twin-Track

Development
Global digital currency is developing rapidly in two directions. The research and
deployment of legal digital currency by many central banks are moving into the
“fast lane”, with private cryptocurrencies continuously expanding. In August 2020,
Bank for International Settlements released the report The Rise of Central Bank
Digital Currency: Drivers, Methods and Technologies, which disclosed that against
the background of the COVID-19 pandemic in the world, some countries and regions
accelerated the development of digital currency, and that at least 36 central banks
in the world issued retail or wholesale central bank digital currency. Countries and
regions like China, the United States, the European Union, Russia and Japan have
quickened the research or testing of central bank digital currencies. In terms of
the strategic considerations of developed countries and emerging countries on legal
digital currency, the former foregrounds the protection of personal privacy, system
security as well as the stability of domestic financial systems, while the latter hopes
to enhance the role of finance in national economic development, improve payment
7Material Source: ‘Explosive’ Growth of Digital Technologies Creating New Potential for Conflict,
Disarmament Chief Tells Security Council in First-Ever Debate on Cyberthreats | Meetings
Coverage and Press Releases, https://www.un.org/press/en/2021/sc14563.doc.htm.
efficiency, increase liquidity and enhance national currency sovereignty via digital
currency.8 Besides, various countries take diverse attitudes and positions on the regu-
lation of private cryptocurrency. For some countries, the use of private cryptocur-
rency for money laundering, fraud and other criminal acts enlarges risks. South
Korean government launches special campaign against crimes in cryptocurrency.
The United States, India, Türkiye and other countries successively tighten the grip
on the regulation of cryptocurrency like Bitcoin. Mexico, Paraguay, El Salvador and
other American countries actively promote the legitimation of Bitcoin based on their
national conditions.
9.3.3 Digital Tax Administration Forms a Trend
The Digital Tax Proposal of the European Union, “Two-Pillar Solution” of Orga-
nization for Economic Co-operation and Development (OECD) and “Bilateral Tax
Agreement Model” of the United Nations serve as the most important rules and
models for global digital tax administration. In August 2020, the United Nations
revised The United Nations Model Double Taxation Convention between Developed
and Developing Countries, which added a digital tax clause and allowed member
states to reach consensus on digital tax administration via bilateral-tax-agreement
negotiations. In June 2021, Group of Seven (G7) came to an agreement on inter-
national tax reform of the minimum corporate tax rate. The agreement covers two
aspects. Firstly, in addition to paying taxes in the location of the headquarters, transna-
tional corporations pay taxes in a reasonable way in the market countries. Secondly,
transnational corporations need to pay taxes at the lowest global corporate tax rate,
i.e. 15%. Essentially, there is a convergence between G7’s “International Tax Reform
Agreement” and OECD’s “Two-Pillar Solution”.9 As inclusive frameworks, they help
various parties to reach a consensus on OECD’s digital tax solution. At the national
level, more countries begin to design and execute unilateral tax measures. By April
2021, 46 countries had started or planned to levy direct digital taxes. To be specific,
22 countries, including Austria, Costa Rica, France and Greece, had passed laws and
levied digital service taxes. 10 countries, including Canada, Denmark and Egypt,
had issued relevant announcements and implementation intentions.10
8 Wang Wen & Wang Yushu: “Digital Currency Landscape against the Background of ‘Double
Circulation’”. Globe, 2021 (2).
9 Liang Lili & Liu Youdi: “OECD: Hoping to Reach a Digital Economy Tax Agreement in the
Middle of the Year”. China Taxation News, February 9, 2021.

10 Zhou Nianli & Wang Da: “The Impact, Challenges and Suggestions Concerning Digital Tax”,
https://www.tisi.org/.
9.3.4 Data Governance Is Actively Promoted
Against the background of the wave of digital economy, data governance receives
widespread attention in the world and becomes a key issue of international cyberspace
governance. In multi-party governance, there is a new trend that features stressing
data protection, strengthening the design of legal systems and promoting data sharing
and cooperation. The 70th Meeting of Internet Corporation for Assigned Names and
Numbers (ICANN) made headway in formulating new policies for the protection
and management of domain-name-registration data, which ensured the accuracy and
legality of domain-name-registration data. In 2021, China successively promulgated
The Data Security Law of the People’s Republic of China, The Protection of Personal
Information Law of the People’s Republic of China and other laws and regulations to
constantly optimize the construction of data-governance legal systems. In November
2020, the State of California of the United States enacted The Amendment to Cali-
fornia Consumer Privacy Act. In January 2021, the Council of the European Union
issued newly-revised E-Privacy Regulation (Draft), which further implemented the
provisions on data protection in General Data Protection Regulation and strength-
ened the protection of users’ personal information as well as rights and interests.
Canada, New Zealand, South Korea and other countries introduce their privacy laws
and data-protection laws ditto. Besides, the United States, the European Union, Japan
and other developed countries and regions carve a niche in cooperation in cross-
border data flow and data sharing, with an attempt to create a “model” of rules.
As an emerging economy, ASEAN also proposes to coordinate national policies to
advance cross-border data flow and boost the development of regional digital integra-
tion. In November 2020, Regional Comprehensive Economic Partnership (RCEP)
was formally signed, which stipulated the rules for cross-border data transmission
and prevented governments of member countries from imposing various restrictions
on digital trade, including the requirement for data localized storage. RCEP also regu-
lated the digitization of trade-related documents and materials, the use of electronic
signatures, electronic authentication, spam and other fields, aiming to promote cross-
border trade and protect the security of consumers’ personal information in RCEP
territory.
9.3.5 Platform Governance Continuously Deepens
In 2021, international community stepped up platform governance. Antitrust gover-

nance against platforms as well as combating terrorism, extremist speech and false
information became the consensus of more countries. Algorithm governance also
played an important part in strengthening platform governance in various countries.
Various countries consolidate antitrust governance against platforms. The United
States, China, the European Union, Germany, Australia and other countries and
regions launch antitrust investigations on large Internet corporations. The European
Union focuses on protecting user privacy, regulating online advertising’s obligations

and responsibilities, and cracking down on unfair commercial behaviors of large
platforms, with an attempt to clarify the responsibilities and positions of platforms
in line with Digital Services Act and Digital Markets Act. Australia issues News
Media and Digital Platforms Mandatory Bargaining Code, which requires large
Internet corporations like Facebook and Google to pay for local news and publishing
organizations to solve the problem of the redistribution of profits between digital
enterprises and traditional news media.
Various countries actively conduct content governance. The powerful public-
opinion manipulation and mobilization capacity of social media evokes the vigi-
lance of governments in the world, and content governance evolves from attacking
content per se into algorithm governance. In 2021, the United States, which flaunted
“Internet freedom”, joined Christchurch Call and supported Internet platforms to
combat extremist and terrorist speeches. Members of Congress of the United States
proposed Algorithmic Justice and Online Platform Transparency Bill of 2021, which
demanded prohibiting harmful algorithms, improving the transparency and audit
ability of platform content, and conducting inter-governmental investigations on
discriminatory algorithmic processes. The European Union published Guideline on
Strengthening EU’s Code of Practice on Disinformation, which required efforts to
combat information manipulation and improve the transparency of platforms. Russia
decelerated the operation speed of Twitter to punish it for failing to delete illegal infor-
mation timely. Germany revised the Network Enforcement Act (Netzwerkdurchset-
zungsgesetz, NetzDG) to strengthen the protection of users’ rights and combat hate
speech on Internet. Simultaneously, large Internet platforms bolstered content gover-
nance. Google, TikTok, Facebook and Twitter released codes of conduct against false
information to curb the dissemination of false information.
9.3.6 AI Governance Arouses Wide Attention
With the robust rise of new-generation AI technology in the world, how to realize
effective AI governance in the wave of new technological revolution and ensure its
sustainable and healthy development becomes an important topic of wide concern
in international community. Since March 2021, Czech Republic has hosted a series
of online meetings with the theme of “International Conference on the Governance
of Artificial Intelligence” (ICGAI) in its capital Prague, in which multi-parties like
governments, enterprises, international organizations and research institutions partic-
ipated, discussing the inclusiveness of AI and the establishment of a comprehensive
AI governance framework.
Practically, all parties progress steadily in AI governance norms. In the gover-
nance of application risks, the European Union publishes the legal framework for AI
regulation, which categorizes AI systems into four types (i.e. unacceptable risks, high
risks, limited risks and extremely low risks) and formulates corresponding restrictive
policies according to different risk levels. Ethically, the United Nations speeds up
the construction of global AI ethics. In January 2021, the United Nations published
an article, calling on all countries in the world to be vigilant against the negative
consequences of using AI technologies, such as bias, racism and false information.11
In July 2021, representatives of UNESCO member states reached consensus on
Recommendation on the Ethics of Artificial Intelligence (Draft). After being adopted
at UNESCO General Assembly in November 2021, it would be the first document
on global AI ethical codes.
In industrial standards, some countries progressively introduce relevant techno-
logical guidelines to regulate the development of AI industry. In January 2021,
Korean Intellectual Property Office released a review guide on AI, which provided
specific guidance for the description and creativity requirements of different types of
AI inventions, in addition to corresponding qualification requirements for computer-
related inventions. In April 2021, the People’s Bank of China issued Evaluation
Specification of Artificial Intelligence Algorithm in Financial Application. To address
potential risks and problems in the current application of AI technology, such as algo-
rithm black box, algorithm homogeneity and model defect, the Specification estab-
lished an algorithmic evaluation framework for AI financial application, systemati-
cally raised basic requirements, evaluation methods and judgment criteria in terms
of security, interpretability, accuracy and performance, and provided guidance for
financial institutions to strengthen the risk management of AI-algorithm applications.
9.3.7 Various Parties Strive to Bridge the Digital Divide
Digital divide aggravates the imbalance in global development. How to effectively

bridge the digital divide poses an important and urgent task or topic to interna-
tional community. In July 2021, the Annual APEC Economic Leader’s Meeting
was convened, and a joint statement was published, which reached a consensus
on promoting data flow and strengthening the trust and cooperation between
consumers and businesses in digital transactions. The meeting stated that it would
support strengthening digital-knowledge education and upgrading digital skills, take
measures to further digital transformation and bridge digital divide, and promote
building an open, dynamic, resilient and peaceful Asia-Pacific Community.12 In July
2020, International Telecommunication Union organized the first high-level policy
dialogue in World Summit on the Information Society (WSIS). Under the theme of
“bridging the digital divide”, governmental departments, business circles, academic
institutions and other parties of WSIS member states shared their practical explo-
ration and experience in narrowing digital divide. The World Bank provides financial
assistance for the digital construction in developing countries and marginal areas.
In May 2021, the World Bank announced an investment of 875 million U.S. dollars
11 Material Source: https://news.un.org/zh/story/2021/01/1075032.

12 Material Source: https://www.apec.org/Meeting-Papers/Leaders-Declarations/2021/2021_ILR.
to International Development Association (IDA) to support Tanzania’s socioeco-

nomic development. In Particular, 150 million U.S. dollars would be used to promote
Tanzania’s digital transformation, focusing on building digital infrastructure and
digital ecosystem and providing digital services, so as to gradually raise local digital
level. In June 2021, the World Bank declared that it would provide 200 million
U.S. dollars to Uganda to fund it in expanding the number of high-speed Internet
connections, improving the efficiency of digital public services and enhancing digital
inclusiveness. At the national level, China actively provides paths and plans to bridge
global digital divide. In June 2021, China held “APEC Workshop on Inclusive Digital
Society: Alleviating Poverty and Improving Living Standards Through Increased
Economic Growth”. APEC member economies like Chile, Malaysia, Mexico and
New Zealand as well as relevant international organizations like World Economic
Forum attended. At the Workshop, China proposed to give full play to the advan-
tages of digital technologies, seek digital inclusive development and launch digital
poverty-alleviation cooperation.
9.4 Cyberspace Governance in Some Representative

Countries and Regions
Over the past year, countries with varying development levels have adopted policies
to support innovation and digital transformation to elevate domestic digital levels.
The United States, the European Union and other developed countries and regions
ardently forged leading advantages in international competition in cyberspace,
increased their investment in the R&D of digital technology, optimized legisla-
tion and regulation, and improved governance capacity. Digital economy played an
increasingly prominent role in enhancing economic resilience. Developing countries
became more enthusiastic and voluntary in conducting digital economic cooperation,
which provided strong momentum for international cooperation in cyberspace. China
actively participated in the process of international cyberspace governance. Entities
like governments, enterprises, technological communities and industrial organiza-
tions played a part in and contributed to the reform of global governance systems
in cyberspace, within the framework of the United Nations as well as bilateral or
multilateral mechanisms.
9.4.1 China
Chinese government, enterprises, technological communities, industrial organiza-

tions and other entities take the initiative in exploring the future development of
international cyberspace governance and endeavor to actualize the vision of peace,
security, openness, cooperation and order in cyberspace. In November 2020, Chinese
9.4 Cyberspace Governance in Some Representative Countries and Regions 201
President Xi Jinping sent a congratulatory letter to World Internet Conference ·

Internet Development Forum, stressing that: “China stands ready to work with inter-
national community to seize the historical opportunity of information revolution,
cultivate new momentum for innovation and development, create new landscape
of digital cooperation, establish new pattern of cybersecurity, build ‘a community
with a shared future in cyberspace’, and join hands to create a better future for
mankind.” This expressed again China’s deep thought on the direction of interna-
tional cyberspace governance. The Organizing Committee of World Internet Confer-
ence released Jointly Build a Community with a Shared Future in Cyberspace,
calling on governments, international organizations, Internet enterprises, technolog-
ical communities, social organizations and individual citizens in various countries to
adhere to global governance vision of extensive consultation, joint contribution and
shared benefits, so as to build cyberspace into a development community, a secu-
rity community, a responsibility community and an interest community that would
benefit all mankind. Think tanks like Wuhan University, China Institutes of Contem-
porary International Relations and Shanghai Academy of Social Sciences jointly
published Cyber Sovereignty: Theory and Practice 2.0, which enriched the idea of
cyber sovereignty.
China unswervingly advocates and supports the dominant role of the United
Nations in formulating international rules in cyberspace. In 2021, China successively
participated in the meetings and consultations of the U.N. Information Security Open-
Ended Working Group and Group of Governmental Experts. The rules on ICT service
supply-chain security that China proposed were recognized, accepted and included in
relevant consensus reports. In June 2021, China attended the public meeting on cyber-
security hosted by the United Nations Security Council. China asserted that various
countries should safeguard peace to promote security and prevent cyberspace from
turning to new battlefield, that various countries should strength communication and
cooperation to promote security and create a good environment in cyberspace, that
various countries should fortify governance to promote security and deepen fair-
ness and justice in cyberspace, and that various countries should boost inclusive
development to promote security and achieve common prosperity in cyberspace.
China readily partakes in bilateral or multilateral exchanges and cooperation and
promotes mutual benefit and inclusiveness in cyberspace. In November 2020, the
23rd China-ASEAN Summit (10 + 1) was held via video conference, in which
Initiative on Building China-ASEAN Partnership on Digital Economy was released.
The two sides agreed to seize digital opportunities, build a digital-economy partner-
ship featuring mutual trust and benefit, inclusiveness, innovation and win–win rela-
tionship, and strengthen the cooperation in the fields of pandemic prevention with
digital technology, digital infrastructure, industrial digital transformation, smart city,
cyberspace and cybersecurity. China actively conducts exchanges and cooperation
with the European Union, League of Arab States, Russia, Africa and other countries
and regions. In September 2020, China-EU High-Level Dialogue in the Digital Area
was staged. Centering on strengthening the cooperation in the digital area, China
and the European Union earnestly implement important consensus that Chinese and
EU leaders have reached, and discuss issues like standards for communications tech-
nology and AI in a practical and constructive manner. In March 2021, China and
League of Arab States jointly released China-League of Arab States Cooperation
Initiative on Data Security, which highlighted the high-degree consensus between
the two sides in the field of digital governance. In June 2021, on the occasion of the
20th anniversary of the signing of China-Russia Treaty of Good-Neighborliness and
Friendly Cooperation, China and Russia published a joint statement. The two sides
reiterated that they would consolidate bilateral and multilateral cooperation in inter-
national information security and continuously promote the construction of a global
international information security system under the principles of preventing conflicts
in information space and encouraging the peaceful use of information technology.
In August 2021, China-Africa Internet Development and Cooperation Forum was
held via video links. Representatives of relevant Chinese institutions, think tanks
and enterprises and the counterparts from 14 African countries and African Union
Commission attended the forum, who carried out in-depth exchanges on issues such
as sharing digital-technology dividend and jointly safeguarding cybersecurity. At the
opening ceremony of the forum, China proposed Initiative on China-Africa Jointly
Building a Community with a Shared Future in Cyberspace, calling on Chinese and
African governments, Internet enterprises, technological communities, social orga-
nizations and individual citizens to join hands to build a closer community with a
shared future in cyberspace.
9.4.2 The United States
The United States remains dominant in utilizing key resources and making rules in
cyberspace. After the Biden administration was in the saddle, internally, the United
States reshaped domestic manufacturing and innovation capabilities, laid stress on
cybersecurity, strengthened top-level design for cyberspace strategy and supply-
chain security, and promoted cooperation between government and private sectors.
Externally, the United States adopted a strategy that combined diplomacy and mili-
tary affairs, developed America-centered multilateral alliances, and took multiple
measures to enhance America’s strength in cyberspace.
(1) Optimizing institutional setup and augmenting linkage and coordination. The
U.S. Department of State establishes the Bureau of Cyberspace Security and
Emerging Technologies to re-organize and allocate resources for the U.S. diplo-
matic work in the fields of the securities of cyberspace and emerging technolo-
gies. The White House newly sets up Office of the National Cyber Director,
which plays the role of “liaison hub” in promoting cross-departmental coor-
dination and public–private collaboration. Office of Science and Technology
Policy of the White House organizes National AI Initiative Office, in charge
of implementing national AI strategies of the United States. Federal Commu-

nications Commission forms the Broadband Data Task Force to quicken and
improve the collection of broadband data.
(2) Increasing investment in digital technology and infrastructure and maintaining
the leading position in industrial chains. U.S. President Biden proposes a large-
scale infrastructure construction and employment program, with a total amount
of 2.25 trillion U.S. dollars, covering infrastructure and network construction,
manufacturing, education, scientific research and employment promotion. In
order to stimulate the semiconductor industry, Biden launches an incentive
plan for semiconductor industry with an investment of 50 billion U.S. dollars.
The United States initiates Semiconductors in America Coalition with dozens
of chip manufacturers in the world and signs semiconductor agreements with
Japan and South Korea to further consolidate its leading position in the global
semiconductor industrial chain.
(3) Ameliorating emergency-response mechanism and safeguarding cybersecurity.
In January 2021, the U.S. Department of Commerce issued the latest rules of
Securing the Information and Communications Technology and Services Supply
Chain. In February 2021, the U.S. National Security Agency released Embracing
a Zero Trust Security Model, a zero trust guide, which aimed to ensure the secu-
rity of key networks and sensitive data within major federal agencies. In May
2021, after the largest oil pipeline operator in the United States was compelled to
suspend its operation because of the cyberattack organized by hackers, the Biden
administration signed Executive Order on Improving the Nation’s Cybersecu-
rity, which required efforts to standardize and update cybersecurity standards
of commercial software, and ordered to establish Cyber Safety Review Board
and strengthen departmental information sharing, so as to improve the federal
capacity in ensuring cybersecurity.13
(4) Reinforcing alliance and cooperation and continuing the containment policy to
suppress competitors. The Biden administration actively revamps the relations
with its allies, ideologizes multilateralism, adopts the strategy of highlighting
group politics and values alliance, and advances the construction of an exclusive
technology-territory that conforms to the interests of the United States. Besides,
the Biden administration proposes United States Innovation and Competition
Act of 2021, which intends to intensify strategic competition with China, restrict
the flow of American technologies and products to Huawei and other Chinese
corporations, and adopt an exclusive strategy against the so-called “institutional
competitors” including China in the digital area. In June 2021, the United States
shut down more than 30 Iranian media websites by dint of its control over top-
level domain names. These acts of digital hegemony accelerate the division and
fragmentation of cyberspace.
13 Material Source: https://www.whitehouse.gov/briefing-room/statements-releases/2021/05/12/

fact-sheet-president-signs-executive-order-charting-new-course-to-improve-the-nations-cybersecu
rity-and-protect-federal-government-networks/.
9.4.3 Russia
Russia improves regulatory legislation, optimizes the strategic layout of scientific

and technological innovation and boosts digital economy. Russia plays an active role
in participating in international cyberspace governance and puts forward “Russian
Plan” to maintain international information security.
(1) Tightening up on data governance and social media regulation. In February
2021, Russian President Putin signed The Federal Administrative Crime Law to
increase the punishment for violations of data-processing regulations. In March
2021, the Federal Service for Supervision of Communications, Information
Technology and Mass Media (Roskomnadzor) announced that as Twitter failed
to comply with relevant laws and regulations in Russia to delete or screen illegal
content concerning drug abuse, child pornography and inciting minors to commit
suicide, Russia decelerated the service speed for Twitter. The Roskomnadzor
said that within one month of the speed limit on Twitter, Twitter had deleted
around 2,000 tweets involving illegal content.14
(2) Attaching great importance to the development of digital economy and scientific
and technological innovation. In September 2020, Russia issued The Roadmap
for the Development of Quantum Communication in Russian Federation, which
planned to implement more than 120 measures and projects by 2021 to accelerate
the development of quantum communication, IoT and other technologies. In
April 2021, the Central Bank of Russia stated that it would launch digital ruble
prototype by the end of 2021 and plan to test it in the first quarter of 2022.
According to relevant planning and deployment, the Central Bank of Russia
would draft necessary regulatory norms in 2022, integrate the Central Bank’s
digital currency into Russian financial system, and pilot digital ruble prototype
with other banks and financial institutions.
(3) Actively putting forward “Russian Plan” for the rules in international cyberspace
governance. In April 2021, Putin officially signed The Basic Principles of State
Policy in International Information Security. The document clarified Russia’s
basic views on the nature of international information security as well as Russia’s
policies and goals. It also defined international information security as the state
of global information space that maintains international peace, security and
stability on the basis of universally-recognized principles and norms of interna-
tional law and subject to equal partnership. The document aimed to publicize
Russia’s views and initiatives on establishing international information secu-
rity guarantee systems, building international legal mechanisms for preventing
and resolving conflicts among countries in global information space, and orga-
nizing and implementing cross-departmental cooperation in national informa-
tion security policies. In July 2021, Russia issued National Security Strategy
2021, which listed information security as an independent item, proposing that
14 Material Source: https://www.msn.com/en-us/news/world/russia-extends-twitter-slowdown-dea

dline-to-remove-content/ar-BB1fjLXG.
the goal of Russian information security was to strengthen the sovereignty in

information space. To this end, Russia will develop information countermeasure
force and use advanced technologies like AI and quantum computing to ensure
information security.
9.4.4 The European Union
The European Union initiates several plans and deploys in digital industry, tech-
nological R&D and cross-border data flow to enlarge digital cooperation. It also
expedites the legislation in the Internet field, disseminates EU’s norms, principles
and values, and influences the formulation of relevant international rules.
(1) Accelerating the digital transformation of the European Union and strength-
ening the digital sovereignty of the European Union. The European Union
successively releases programmatic documents such as The EU’s Cybersecurity
Strategy for the Digital Decade and 2030 Digital Compass: The European Way
for the Digital Decade, which put forward many goals, e.g. enhancing EU’s
cybersecurity-protection capacity, promoting EU’s digital transformation and
aggrandizing EU’s voice and influence over international norms and standards
in cyberspace. Simultaneously, the European Union further adjusts the industrial
layout in emerging areas. In March 2021, the European Union announced that
it planned to invest 76 billion euros in cutting-edge technologies, including AI
and cybersecurity, from 2021 to 2027. In May 2021, in response to the adjust-
ment of global supply chains against the backdrop of the COVID-19 pandemic,
the European Union updated EU Industrial Strategy, proposing to enhance the
resilience of EU single market, broaden the autonomy of opening-up strategy,
forge multilateral international partnerships, and establish industrial alliances
like Semiconductor Technology Alliance and Cloud Computing Alliance. Addi-
tionally, the European Union launches two drafts of Digital Markets Act and
Digital Services Act, which formulate new comprehensive rules for digital
service providers and promote the openness, transparency and fair competition
in digital market. In the field of cybersecurity, the European Union publishes
Directive on Measures for a High Common Level of Cybersecurity across the
Union (Draft), which will further the high-level integration of overall security
of EU’s basic network.
(2) Speeding up the establishment of digital partnership and putting forward the EU
Indo-Pacific Strategy. In December 2020, the European Union founded D4D,
which gathered stakeholders from EU government agencies, private institutions,
academic institutions, financial institutions and social groups, with the goal of
increasing investment in digital transformation of partner countries, making
rules for global digital economy and society, and advancing EU’s interna-
tional digital partnership.15 In April 2021, the European Union released The EU
15 Material Source: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2321.

Strategy for Cooperation in the Indo-Pacific. As the Strategy suggested, digital

cooperation signified a key measure to promote the EU Indo-Pacific Strategy.
The European Commission declared that the European Union would cooperate
with Indo-Pacific countries in the fields of AI, data security, cross-border data
flow and 5G.
(3) Carrying out cross-border data law-enforcement assessment and pushing on
cross-border data negotiation. In March 2021, the European Parliament adopted
Commission Evaluation Report on the Implementation of the General Data
Protection Regulation Two Years After Its Application,16 which pointed out
the unsatisfactory law-enforcement of GDPR to date and called for improving
the implementation of GDPR. Besides, the European Union and the United
States have been engaged in negotiations on making the latest cross-border data
transmission agreement. The European Union also accelerates the adequacy
decision of data protection with the United Kingdom, South Korea and other
countries.
(4) Promulgating the first proposal of Artificial Intelligence Act and fostering
the formulation of international rules on AI. In April 2021, the European
Union staged the proposal of Artificial Intelligence Act and took different
regulatory measures for AI systems at different risk levels.17 The proposal
suggested empowering supervisory authorities to take interim measures and
collect fines. According to the proposal, some “unacceptable” AI applications
would be banned in Europe. For instance, the use of biometric-recognition tech-
nology will be stringently restricted, and face-recognition technology used by
law-enforcement departments will be appropriately controlled.
9.4.5 Germany
Germany keeps improving the top-level design of cutting-edge technologies like AI

and quantum communication. In terms of regulation, Germany highlights the security
of communication devices and services. In terms of platform governance, Germany
amplifies antitrust governance and social-media-content governance.
(1) Strengthening investment and deployment in cutting-edge technologies. In
December 2020, German government revised German Strategy for Artificial
Intelligence in 2018 and planned to increase the funding for AI from three
billion euros to five billion euros by 2025 by means of economic stimuli and
package plans. German Quantum System Planning Committee released the
report Quantum Technology: The Framework Plan of the Federal Government
from the Foundation to the Market, which clarified research priorities and chal-
lenges of Germany in the field of quantum system in the future ten years. The
16Material Source: https://www.europarl.europa.eu/doceo/document/TA-9-2021-0111_EN.html.

17Material Source: https://digital-strategy.ec.europa.eu/en/library/proposal-regulation-laying-
down-harmonised-rules-artificial-intelligence.
Federal Ministry of Education and Research (German: Bundesministerium für

Bildung und Forschung) will formulate new quantum system research plans in
line with the report.
(2) Improving relevant legislation on ICT security. In April 2021, German
Bundestag approved Communication Security Act 2.0, which stipulated that
key components of mobile technologies shall be strictly reviewed and suppliers
providing core network devices must be technologically examined in terms
of security. It also specified that German telecom operators must report to
Bundesministerium des Innern (BMI) when they would obtain key components
from suppliers for the first time.
(3) Reinforcing antitrust governance against digital platforms. In January 2021,
German Bundestag passed Digital Competition Law, which imposed stricter
control on Internet enterprises. Digital Competition Law significantly raised
the threshold for applying for mergers and acquisitions of German Internet
enterprises and enhanced the regulatory function of Federal Cartel Office, so as
to conduct the investigation on anti-competitive practice more effectively.
(4) Deepening the governance of Internet content. In May 2021, German Bundestag
adopted the revised the Network Enforcement Act (Netzwerkdurchsetzungsge-
setz, NetzDG) to consolidate the protection of user rights and combat online
hate speech. German government remarked that NetzDG enlarged the trans-
parency obligation for social media enterprises and other online participants,
and regulated the conditions for researchers to access social media data.18
9.4.6 France
France views the collection of digital tax as an important measure to promote its
digital sovereignty strategy and maintain a strong stance in this regard. In December
2020, France officially imposed digital service tax on digital giants. American digital
giants like Google, Amazon, Facebook and Apple were included in the taxed objects.
Specific tax revenue involved in Internet advertising income, income from personal
data use and income from market sales. As French economic department estimated,
digital tax would produce c. 600 million euros of tax revenue for France in 2021.19
France and the United States started a series of negotiations on digital tax, which
even triggered tariff war. By levying digital tax, France not only demonstrates its
firm position of defending its own interests with the principle of independence and
autonomy, but also urges the European Union to introduce common tax policies in
the digital area.
In cybersecurity, France further improves the construction of cybersecurity
capacity. In 2021, France launched a new cybersecurity construction plan and
invested one billion euros in promoting cybersecurity construction and containing
18 Material Source: https://www.telecompaper.com/news/german-parliament-approves-reform-of-

network-enforcement- act-1382325.
19 Material Source: http://views.ce.cn/view/ent/202012/01/t20201201_36065718.shtml.
cyberattacks. According to the plan, France would bolster the education and training
of cybersecurity personnel, build Le Campus Cyber Français with an area of 20,000
square meters, and execute “Cyber Firefighter Program”. By establishing emergency
agencies in various cities, France can make rapid response to cyberattacks. French
government also calls for more international cooperation in cybersecurity, especially
the cooperation with Europol and Interpol in combating cybercrime.20
9.4.7 The United Kingdom
After Brexit, the United Kingdom actively plans to build an innovative power to
enhance its global influence and makes strategic deployment in cyberspace. In 2021,
the United Kingdom successively established UK Cyber Security Council and UK
Advanced Research and Invention Agency, released AI Roadmap with important
guiding significance, advised British government to promote the application and
trusted development of AI in advantageous fields, and called on British govern-
ment to launch national AI strategies. In March 2021, British government published
Global Britain in a Competitive Age: the Integrated Review of Security, Defence,
Development and Foreign Policy,21 which comprehensively planned British actions
in cyberspace. As the document suggests, the United Kingdom will focus on:
(1) Improving British cyber ecosystem, deepening cooperation among government,
academia and industry, strengthening technological R&D, innovation and talent
training, and supporting the construction of industrial bases for cybersecurity
products and services.
(2) Boosting the digital transformation of British economy, establishing a British
global leading position in digital trade, enhancing data protection, and updating
cybersecurity defense capability.
(3) Expanding the leading role of key technologies, maintaining the development
of industrial infrastructure, forging the advantages of key technologies, and
formulating an advanced legal framework to support the application of digital
technologies.
(4) Deepening international partnership, actively developing foreign relations in
the rules and standards for technologies and digital economy, and safeguarding
British interests in cyberspace.
(5) Cracking down on malicious activities in cyberspace.
The document also specifies that the United Kingdom will further its deeper
partnership with Indo-Pacific countries in science, technology and data to augment
British influence in the Indo-Pacific.
20 Material Source: “France Announces Its Cybersecurity Construction Plan” published at People’s
Daily, April 6, 2021.

21 Material Source: Global Britain in a Competitive Age: the Integrated Review of Security, Defence,
Development and Foreign Policy.

The United Kingdom energetically broadens global trade partnership. In January

2021, the United Kingdom announced its application for a CPTPP (Comprehensive
and Progressive Agreement for Trans-Pacific Partnership) member state, aiming
to seek new opportunities for modern industries like science and technology and
services. In June 2021, the United Kingdom declared the start of digital trade nego-
tiations with Singapore. The two sides would strengthen cooperation in cross-border
data flow, Fintech and other fields to help to remove digital trade barriers.
9.4.8 Japan
Japan accelerates the layout of emerging technologies and reinforces industrial

cooperation and Japan-U.S. bilateral coordination, with an attempt to fortify its
international competitiveness in cyberspace.
(1) Fostering innovations in quantum technology. In January 2021, Japanese
government convened the 8th Comprehensive Innovation Strategy Promotion
Meeting, which clarified that Japan would take measures to promote the inno-
vation and development of quantum technology on the basis of Quantum
Technology Innovation Strategy published in January 2020, including giving
play to the role of Quantum Technology Innovation Negotiation Meeting,
building quantum technology innovation base, and strengthening cooperation
in “industry, university and research”. In May 2021, several Japanese corpo-
rations like Toshiba, NTT and Fujitsu initiated and established “Negotiation
Meeting on Cultivating New Industries by Using Quantum Technology”, which
was committed to building globally competitive quantum technology coopera-
tion systems and jointly promoting the development of quantum technology via
cooperation among industry, government and university.
(2) Advancing 5G and 6G technological R&D cooperation. In April 2021, Japanese
and American heads met and issued a joint statement. The two sides agreed to
jointly invest 4.5 billion U.S. dollars to the R&D, development, testing and
deployment of 5G and 6G technologies and launch global digital intercon-
nectivity partnership, so as to facilitate security interconnectivity and digital
economy and build the cybersecurity capacity of partners.22 In June 2021, Japan
and Finland signed a 6G technological cooperation agreement to boost coop-
eration in the formulation of 6G standards, in which the University of Tokyo,
NTT and Nokia, a Finnish equipment manufacturer, would participate.
(3) Passing a series of digital reform acts. In May 2021, House of Councilors of
Japan voted to pass Digital Reform Association Act and planned to organize
Digital Agency in September 2021. Like a control tower for digital reform of
Japanese governmental and non-governmental institutions, the Act consists of
six laws, e.g. Digital Agency Establishment Law that covers national information
22Data Source: https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/16/fact-

sheet-u-s-japan.
system and Basic Law on Building Digital Society that takes “realizing a digital
society” as a basic idea.
9.4.9 South Korea
South Korea vigorously promotes digital transformation and upgrading and cross-
border data flow, quickly improves global competitiveness of domestic semicon-
ductor industry, and enhances the supervision and governance of cryptocurrency.
(1) Forwarding the implementation of “Digital New Deal”. In November 2020,
South Korea initiated “Digital New Deal” Promotion Plan, which focused
on accelerating core programs such as digital dam, smart government, smart
health and digital twin, improving the R&D level of AI and other technologies,
and cultivating digital talents. Besides, in July 2020, South Korean govern-
ment released its economic development program, which planned to vigorously
develop digital economy and green economy in next five years and boost the
transformation and upgrading of South Korea’s economy.
(2) Facilitating cross-border data flow between the European Union and South
Korea. In March 2021, the EU-South Korea Adequacy Decision Negotiation
came to an end. The two sides agreed that the “adequacy decision” mecha-
nism enabled the free flow of personal data in the European Union and South
Korea, which robustly spurred bilateral cross-border data trade and achieved
high-degree integration of data protection.
(3) Releasing “Strategy for Building a Semiconductor Power”. In May 2021, South
Korean government and chip manufacturing enterprises announced an invest-
ment of around 510 trillion South Korean Won in next 10 years to build
the world’s largest chip manufacturing base, making South Korea a compre-
hensive semiconductor power by 2030. Particularly, South Korean govern-
ment will give aid to South Korean semiconductor enterprises by reducing
tax and interest rate, slackening regulatory requirements and strengthening
infrastructure construction.
(4) Cracking down on cryptocurrency-based tax evasion. South Korea steps up
efforts to crack down on illegal activities of tax evasion by using cryptocurrency.
As the trading volume of cryptocurrency continues to expand, South Korea will
tax the income from virtual assets in 2022, planning to levy 20% capital gains
tax on profits from cryptocurrency trading that exceeds 2,300 U.S. dollars.
9.4.9.1 India
India quickens the deployment of 5G and improves digital financial services. At

the regulatory level, India introduces stricter regulations on social platform and
cryptocurrency.
(1) In 5G construction, in February 2021, Bharti Airtel, an Indian telecom oper-

ator, cooperated with Qualcomm, an American chip manufacturer, to accelerate
5G operation in India. In May 2021, the Indian Ministry of Communications
issued an announcement, allowing global telecom equipment manufacturers like
Ericsson, Nokia and Samsung to participate in 5G testing in India.
(2) In digital finance, Indian enterprises collaborate with technological giants like
Facebook and Google on establishing Indian local electronic payment networks.
State Bank of India joined Liink, an inter-bank data network based on blockchain
technology developed by J.P. Morgan, hoping to reduce transaction costs
and improve customers’ cross-border payment experience via technological
integration.
(3) In social media regulation, in February 2021, India published Information Tech-
nology Rules 2021 (Intermediary Guide and Digital Media Ethical Code) to
regulate social media platforms, streaming media services and digital news
organizations. The rules require that social-media intermediary platforms should
establish a complaint correction mechanism to receive and resolve complaints
from users or victims, and delete the content within 24 h after receiving the
complaint, so as to ensure cybersecurity and dignity of users (especially female
users).
(4) In cryptocurrency regulation, in March 2021, India amended The Third Schedule
of the Companies Law 2013, requiring listed companies and private companies
to disclose their cryptocurrencies and other activities using digital currencies.
Besides, India plans to form an expert group to further research and regulate
cryptocurrency.
9.4.9.2 ASEAN
The continuous raging of the COVID-19 pandemic significantly aggrandizes the

demand of ASEAN countries for digital services, whose willingness of regional
digital development, cooperation and governance further intensifies. In January 2021,
the 1st ASEAN Digital Ministers’ Meeting (ADGMIN) was staged via video confer-
ence. It adopted ASEAN Digital Masterplan 2025, which clarified the goals and
paths for ASEAN digital development. The action plan made in the Masterplan
will give priority to promoting the recovery of ASEAN economy from the COVID-
19 pandemic, improving the quality and coverage of fixed and mobile broadband
infrastructure, and providing reliable digital services. It will create a competitive
digital service market, ameliorate the quality of e-government services and expand
their use. Besides, it will furnish digital services connected to businesses and boost
cross-border trade, enhance the capacities of enterprises and citizens to participate
in digital economy, and help to build an inclusive digital society. In order to urge
ASEAN to formulate uniform cybersecurity and data flow standards and consolidate
overall cybersecurity and data protection level of ASEAN, ASEAN simultaneously
released Data Management Framework and Contractual Clauses for Cross Border
Data Flows. In April 2021, blockchain associations of Indonesia, Singapore, the
Philippines, Thailand and other Southeast Asian countries signed a memorandum

of understanding to establish ASEAN Blockchain Alliance and promote blockchain
cooperation in the Asia Pacific Region.
9.4.9.3 Australia
In Australia, governance of digital platforms is constantly upgraded. In February

2021, Parliament of Australia passed News Media and Digital Platforms Manda-
tory Bargaining Code, which required Google, Facebook and other technological
corporations to pay for their news content to the media. It also stipulated that both
parties can resolve major disputes through fair and balanced arbitration procedures.
In response to the Code, Google and Facebook threatened to shut down their relevant
services in Australia in protest; yet, they finally reached an agreement with Australia
and consented to pay Australian news organizations. In April 2021, Federal Court
of Australia ruled that Google misled consumers when collecting personal location
information via Android mobile devices, hence imposing a fine on Google. In June
2021, Australian Senate adopted Online Security Act 2021. According to the Act, citi-
zens can require platforms to delete content about cyber bullying and abuse within
24 h, and social platforms like Facebook and Twitter will face huge fines if they fail
to handle the request in a timely manner.
9.4.9.4 Other Regions
In West Asia and South Asia, some countries seize the opportunity of digital devel-
opment and actively launch bilateral/multilateral digital cooperation. In November
2020, five countries, i.e. Bahrain, Jordan, Kuwait, Pakistan and Saudi Arabia, jointly
established Digital Cooperation Organization (DCO). In April 2021, Nigeria and
Oman formally joined DCO. DCO aims to strengthen cooperation in all innovation-
driven fields, accelerate the growth of digital economy, and promote common digital
vision of member states in achieving economic diversification and improving social
prosperity. In April 2021, DCO started its first ministerial meeting and reached an
agreement on launching a number of initiatives. These initiatives would assist DCO
member states to realize a digital future by advancing cross-border data flow, empow-
ering women in digital labor market, and providing services for start-ups and small
and medium-sized enterprises.23
In Africa, cooperation that promotes digital transformation is underway. In March
2021, Egypt and Iraq held a bilateral meeting, centering on bilateral cooperation in
digital fields such as information technology and communications. The two sides
planned to implement joint projects to carry forward digital transformation, digital
23 Material Source: Russia extends Twitter slowdown, deadline to remove content, https://www.
msn.com/en-us/news/world/russia-extends-twitter-slowdown-deadline-to-remove-content/ar-BB1
fjLXG.
capacity building and digital infrastructure development. In April 2021, the Ministry
of Communications and Digital Technology of South Africa released National Data
and Cloud Policies (Draft), which intended to improve national capacity in public
services by putting governmental data on the cloud. In line with effective analysis
of data, South Africa formulates more scientific public policies to improve its data
sovereignty and maintain its data security.24 China and Egypt actively carry out
IT cooperation. Shanghai Institute of Microsystem and Information Technology of
the Chinese Academy of Sciences and the Electronics Research Institute of Egypt
signed a memorandum on international cooperation in electronic-technology incu-
bator, in order to enhance the BRI cooperation as well as scientific and technological
innovation and development.
The COVID-19 pandemic poses new challenges to the world and impels people
to re-consider international cyberspace governance. The future development of the
world rests on our efforts to common destiny and future of mankind. The future of
cyberspace calls for the convergence of wisdom and the advancement in practice.
For people in various countries, it is a common wish to hand down the torch of peace
inter-generationally, steadfastly empower Internet development and develop human
civilization. All parties should seize the historical opportunity of information revolu-
tion, cultivate new momentum for innovation and development, forge new landscape
of digital cooperation, strengthen dialogues and cooperation, and jointly promote
the interconnectedness as well as collaboration, participation and common interests
in cyberspace, so as to better benefit people of all countries with achievements of
Internet development and work together to build “a community with a shared future
in cyberspace”!
24 Material Source: South Africa: New draft national data and cloud policy, https://www.bowman
slaw.com/insights/technology-media-and-telecommunications/south-africa-new-draft-national-
data-and-cloud-policy/.
Postscript
Presently, information technology represented by Internet has increasingly become

a leading force for innovation-driven development, which propels qualitative leap in
social productivity and signals global, strategic and revolutionary digital transforma-
tion. With World Internet Development Report 2021 (hereinafter referred to as “the
Report”), we hope to comprehensively represent the status quo of world Internet
development in the past year, interpret the trends in world Internet development,
facilitate the building of “a community with a shared future in cyberspace” among
international community, and jointly forge a better future for mankind.
During the compilation of the Report, we receive guidance and support from
the Office of the Central Cyberspace Affairs Commission (hereinafter referred to
as “OCCAC”). Leaders of the OCCAC give us specific guidance on the Report.
Relevant ministries and commissions, bureaus and units of the OCCAC as well
as cyberspace affairs commissions of all provinces provide us with strong support
in necessary data and materials. The Report is launched by Chinese Academy
of Cyberspace Studies (CACS), and co-organized and co-compiled by National
Computer Network and Information Security Administrative Center, Beijing Univer-
sity of Posts and Telecommunications and National Industrial Information Security
Development Research Center. Experts and scholars, including Zhou Hongren, Gao
Xinmin, Hu Zhijian, Zhao Guojun and Zhang Li, contribute their valuable sugges-
tions. Main contributors are: Xia Xueping, Fang Xinxin, Li Yuxiao, Xuan Xingzhang,
Li Yingxin, Zou Xiaoxiang, Liao Jin, Cheng Yifeng, Jiang Wei, Jiang Yang, Nan Ting,
Wang Hailong, Li Xiaojiao, Xu Yanfei, Jiang Shuli, Tian Yuan, Chi Haiyan, Li Wei,
Yuan Xin, Chen Jing, Xu Yu, Xiao Zheng, Wu Wei, Zhang Qiyuan, Zhao Gaohua,
Shen Yu, Li Yangchun, Deng Jueshuang, Cai Yang, Jia Shuowei, Liu Chaochao,
Sun Luman, Lin Hao, Liu Zhuoyue, Wang Hualei, Wang Liying, Zhang Xuejun,
Chong Dandan, Gao Taishan, Zhang Nan, Tang Sisi, Xie Xinzhou, Shi Anbin, Xu
Yuan, Chen Hongsong, Chen Kai, Wang Yulong, Zhao Jingwu, Cheng Zhe and He
Aoxuan.

https://doi.org/10.1007/978-981-19-9323-7
216 Postscript
The Report, albeit successfully published thanks to the strong support and consid-
erable help from all sectors of society, is inadequate in terms of perspective and
insight due to our limited research level, working experience and tight deadline.
Therefore, we ardently welcome valuable opinions and suggestions from govern-
mental departments, international organizations, research institutes, Internet corpo-
rations and social organizations across different sectors, home and abroad, to help
us produce better reports in the future and contribute more wisdom and strength to
world Internet development.
Chinese Academy of Cyberspace Studies (CACS).

August 2021.

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World Internet Development

Translated by CCTB Translation Service

ISBN 978-981-19-9322-0 ISBN 978-981-19-9323-7 (eBook)

Jointly published with Publishing House of Electronics Industry

© Publishing House of Electronics Industry 2023

Beijing, China Chinese Academy of Cyberspace

1.3.3 The United Kingdom Takes the Lead in Cybersecurity

2.4.2 Blockchain Plays a Decisive Role in the Strategic

4.2.6 Digital Economy Helps to Fight the COVID-19

5.4.2 Local Governments Become E-Government Entities

7.4.1 Cyber Resilience Becomes a Buzz Word in the Field

8.4.1 Cyber Economy Thrives and the Legislation

9.4.5 Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206

© Publishing House of Electronics Industry 2023 1

1.1 World Internet Development in 2021

1.1.1 The Construction of Network Infrastructure

1 Data Source: The report of Point Topic, a market research firm.

1.1.2 The Innovation on Digital Technology Continues

Information industry plays a dominant role in global economic development. Digital

3 Cankaoxiaoxi.com: “Russian Experts: Russia Is Investigating China’s Experience in Establishing

Decade”, March 15, 2021, http://digitalpaper.stdaily.com/http://www.kjrb.com/kjrb/html/2021-03/

on Breakthrough Technologies”, March 22, 2021, http://digitalpaper.stdaily.com/http://www.kjrb.

21, 2021, http://www.xinhuanet.com/tech/2021-04/22/c_1127360875.htm.

1.1.3 Global Digital Economy Grows Against Headwinds

8 Data Source: IDC: Worldwide Semiannual Telecom Services Tracker.

published by the People’s Bank of China on July 16, 2021.

January 25, 2021.

1.1.4 The Construction of Digital Government Steadily

1.1.5 Internet Media Convergence Forms a Trend

1.1.6 Cybersecurity Risks Keep Rising, and Supply-Chain

19 Data Source: Crunchbase, Cybersecurity Research Report 2021.

Data-security protection signifies a hot topic in annual global cyberspace security, on

1.1.7 The Rule-of-Law Construction in Cyberspace

In recent years, the rule-of-law construction in cyberspace developed steadily, the

1.1.8 International Competition on Digital Rule-Making Is

1.2 Internet Development in Representative Countries

1.2.1 Index Construction

Global Internet Development Index (GIDI) System comprehensively measures a

1.2.2 GIDI System

Table 1.1 shows GIDI System in 2021.

1.2.3 Analysis of Results

Through the calculation of indicators, the scores of Internet Development Index in

Table 1.1 GIDI System in 2021

Table 1.1 (continued)

Table 1.1 (continued)

Table 1.1 (continued)

Table 1.1 (continued)

remain relatively balanced in Internet development, ranking top in the scores of

1.2.3.1 The Construction of New Infrastructure Accelerates

Table 1.2 The scores of

Table 1.2 (continued)

23Data Source: Cisco (the United States), https://6lab.cisco.com/stats/search.php.

United Kingdom, Germany, Norway, Switzerland, Australia, Ireland, New Zealand

1.2.3.2 Various Countries Attach Great Importance to Scientific

The COVID-19 pandemic accelerates the digital transformation of various industries.

25 Data Source: OECD Digital Economy Outlook 2020.

Table 1.3 The scores of

Table 1.3 (continued)

1.2.3.3 In the COVID-19 Pandemic, the Scale of Digital Industry

1.2.3.4 With a Steady Uptrend in Internet Application, New Online

27Datareportal: Digital 2021, https://datareportal.com/reports/digital-2021-global-overview-