China Internet Overview
As of December 2023, China’s internet user base reached 1.092 billion, marking an increase of 24.8 million from December 2022, according to data from CNNIC released in March 2024.
The internet penetration rate was 77.5%, up by 1.9 percentage points. Of these, 1.091 billion accessed the internet via mobile phones, accounting for 99.9% of internet users. Rural internet users constituted 29.8% of the total, amounting to 326 million, while urban users made up 70.2%, totaling 766 million.
The usage of mobile phones for internet access remained dominant at 99.9%, with desktop computers, laptops, televisions, and tablets being used by 33.9%, 30.3%, 22.5%, and 26.6% of the internet population, respectively.
The user bases for ride-hailing, online travel booking, online shopping, live streaming, and internet medical services grew by 90.57 million, 86.29 million, 69.67 million, 65.01 million, and 51.39 million respectively compared to 2022, with growth rates of 20.7%, 20.4%, 8.2%, 8.7%, and 14.2% respectively.
Following are the specific user demographics and their growth in various internet services as of December 2023:
📺 Video streaming users: 1.067 billion (up by 36.13 million, 97.7%)
📱 Short video users: 1.053 billion (up by 41.45 million, 96.4%)
💬 Instant messaging users: 1.060 billion (up by 21.55 million, 97.0%)
🏛️ Online government services users: 973 million (up by 47.01 million, 89.1%)
💳 Online payment users: 954 million (up by 42.43 million, 87.3%)
🛒 E-commerce users: 915 million (up by 69.67 million, 83.8%)
🔍 Search engine users: 827 million (up by 25.04 million, 75.7%)
🎥 Live streaming users: 816 million (up by 65.01 million, 74.7%)
🎵 Online music users: 715 million (up by 30.44 million, 65.4%)
🍔 Online food delivery users: 545 million (up by 23.38 million, 49.9%)
🚖 Ride-hailing users: 528 million (up by 90.57 million, 48.3%)
📚 Online literature users: 520 million (up by 27.83 million, 47.6%)
✈️ Online travel booking users: 509 million (up by 86.29 million, 46.6%)
🩺 Internet healthcare users: 414 million (up by 51.39 million, 37.9%)
Instant Messaging
By December 2023, China’s instant messaging user base reached 1.06 billion people, an increase of 21.55 million from December 2022, accounting for 97.0% of netizens.
In 2023, the development momentum of China’s instant messaging services was strong, with accelerated technology innovation and steady industry growth, contributing to the construction of a powerful internet nation.
This includes significant growth in internet advertising revenues, such as Tencent’s over 13 billion yuan increase in the first three quarters of 2023, a 23.5% growth rate. New areas like short video content within apps like WeChat and QQ saw rapid development, with WeChat Video Account’s total views and user watch time increasing by over 50% and nearly 100% year-on-year, respectively.
Alibaba’s business messaging app DingTalk integrates the “Tongyi Qianwen” large language model into its core functions such as group chats and video conferences, enabling users to activate artificial intelligence services through conversational interactions.
Meanwhile, ByteDance’s Feishu has launched a new product, “Feishu Intelligent Companion,” which offers innovative services such as smart translation and automatic Q&A in multiple scenarios, including content creation, data analysis, and system construction, effectively enhancing the level of intelligence in instant messaging products.
Search Engines
By December 2023, China’s search engine user base reached 827 million, an increase of 25.04 million from December 2022, accounting for 75.7% of Chinese netizens.
In 2023, the intelligent level of search engine products in China continued to improve, with applications becoming more enriched in both personal and business contexts.
China’s search engine companies are driving the integration of LLMs with the industrial sector, gradually enhancing the level of manufacturing intelligence and continuously enriching and expanding new application scenarios.
For example, Baidu’s “Kaiwu” platform, which is upgraded based on LLMs, currently serves 220,000 enterprises and has developed over 40,000 industrial models. It covers areas such as safe production, smart logistics, and smart quality inspection, helping enterprises reduce costs and increase efficiency.
Collaboration & Communication
By December 2023, China’s Collaboration and Communication Software user base reached 537 million people, accounting for 49.2% of China internet users.
The sector in China continued to introduce emerging technologies, achieving positive progress in enhancing product intelligence levels and user interaction experience.
Firstly, the level of product intelligence has been enhanced.
By incorporating artificial intelligence technology, the intelligence level of online office products has been effectively improved, aiding users in boosting their work efficiency.
For example, Kingsoft Office’s smart application “WPS AI” can generate texts such as weekly reports and job postings, and it can also create PowerPoint presentations with one click. DingTalk has transformed more than 20 product lines and over 80 scenarios with AI, promoting its application in over 700,000 enterprises.
Secondly, the interactive experience is continuously upgraded.
By introducing technologies such as naked-eye 3D and Augmented Reality (AR), online office products can help users view designs and manufacturing processes more intuitively and accurately, improving the interactive experience.
For instance, Tencent Meeting launched a naked-eye 3D video conferencing feature, allowing users to see three-dimensional content from different perspectives by moving left and right, offering a more realistic experience.
The domestic AR glasses company Rokid released the “Rokid AR Studio,” which enables immersive office scene interactions through gestures, voice, and other interaction modes.