CNNIC Releases the 54th Statistical Report on China's Internet Development

On August 29, the China Internet Network Information Center (CNNIC) released the 54th Statistical Report on China's Internet Development (hereinafter referred to as the Report) at the Creative Development of Smart Economy Event of the 2024 China International Big Data Industry Expo. The Report shows that as of June 2024, the number of Internet users in China reached nearly 1.1 billion (1,099,670,000), an increase of 7.42 million from December 2023, with an Internet penetration of 78.0%. In the first half of the year, China's Internet industry maintained a good development momentum, with basic Internet resources providing a solid foundation, digital consumption stimulating domestic demand, and digital applications releasing innovative vitality. More people have connected to the Internet, sharing the convenience and benefits of the digital era.

Basic Internet Resources Further Enriched, Playing an Increasingly Prominent Foundation Role

The Report indicates that in the first half of the year, the continuous enrichment of basic Internet resources, such as domain names and IP addresses, provided a strong support for the operation and thriving development of the Internet industry. First, the large-scale deployment and application of IPv6 continued to advance. As of June, the number of IPv6 address was 69,080 blocks /32, an increase of 1.5% from December 2023. As of May, the number of active IPv6 users reached 794 million, with the proportion of mobile network IPv6 traffic reaching 64.56%, and the support rate for IPv6 by major commercial websites and mobile Internet applications reached 90%. Second, the country code top-level domain (ccTLD) holdings of China have been the highest globally for ten consecutive years. As of June, the total number of domain names in China was 31.87 million, with the ccTLD of .CN accounting for 19.56 million, or 61.4% of the total, maintaining its position as global No. 1 for ten consecutive years.

Youths and Seniors Drive New User Growth, with Short Videos Leading in Attracting New Users

The Report shows that in the first half of the year, the continuous consolidation of digital information infrastructure and the widespread implementation of digital services for the benefit of the public have effectively promoted the growth of the Internet user base. First, the youth and the silver generation are important sources of new Internet users. With the ongoing improvement of digital services for the elderly and the accelerated popularization of Internet applications, various measures have been taken to help more people get online. Data shows that among the 7.42 million new Internet users, 49.0% were young people aged 10-19, 15.2% were aged 50-59, and 20.8% were 60 years old and above. Second, short videos have become a key application for new Internet users. Among the new Internet users, entertainment and social needs are the main drivers of Internet usage, with 37.3% of the group using short video applications for the first time. Additionally, instant messaging also showed some "user acquisition" capability, accounting for 12.6% of the first-time Internet applications used by new users.

Trade-In Programs Release Domestic Demand Potential, and Online Service Consumption Becomes Increasingly Popular

The Report shows that in the first half of the year, trade-in programs and online service consumption became highlights of consumer spending. First, online trade-in activities were very active. E-commerce platforms actively supported the trade-in policy by increasing subsidies, simplifying processes, and improving logistics, which helped to promote consumption conversion and upgrade. Data shows that 68.8% of users who participated in trade-in activities did so online. Among these, the highest trade-in rates were for mobile devices and traditional large appliances like washing machines, accounting for 28.8% and 23.7% of related consumers, respectively. Second, online life service consumption has become increasingly popular. With the growing richness of online service scenarios, more and more users are enjoying the convenience of life services through online means. As of June, 50.3% of Internet users had ordered food delivery, 20.7% had used online dining reservation services, and 17.3% had purchased movie tickets and leisure entertainment services online.

Mobile Payments Become Increasingly Convenient, Allowing the Elderly and Foreigners to Enjoy New Payment Experiences

The Report shows that in the first half of the year, with the deep implementation of a series of measures to improve payment convenience, the level of mobile payment convenience has continuously increased. First, mobile payment services for the elderly have been continuously improved. The mobile payment industry has actively promoted age-friendly upgrades, enhancing the experience of elderly users through simplified processes and added language broadcasts, promoting the use of mobile payments among the elderly. As of June, the usage rate of mobile payments among Internet users aged 60 and above reached 75.4%. Second, mobile payments for foreign visitors to China have become increasingly convenient. Innovations in mobile payment services for foreigners, such as foreign e-wallet for domestic use and foreign card binding, have continuously optimized the payment experience for foreign visitors. In the first half of the year, over 5 million inbound visitors used mobile payments, a fourfold increase from the previous year; the number of transactions exceeded 90 million, with a total transaction value of over 14 billion yuan, both showing a sevenfold increase.

Vibrant Development of the Online Video Industry, Micro-Series Gradually Moving Towards Standardization

The Report shows that in the first half of the year, with the continuous growth in demand for high-quality content and the continuous optimization of the industry environment, the online video industry has shown a vibrant development trend. First, the compliance level of the micro-series industry has continuously improved. With the introduction of industry guidance policies, the creation and production of micro-series have become more standardized. The Report shows that as of June, 52.4% of Internet users watched micro-series. Second, the short video industry continues to flourish. With the increasing user engagement on short video platforms, the e-commerce business of short videos has steadily developed, and the efficiency of commercial monetization has continuously improved. As of June, 95.5% of Internet users watched short videos. Third, the long-form video industry has improved in quality and efficiency. The trend of quality improvement in the industry continues, with long-form dramas such as My Altay and Flowers gaining both popularity and critical acclaim, providing users with high-quality audio-visual experiences. As of June, 65.2% of Internet users watched long-form videos.