China’s Digital Economy Shares One Third of GDP

Apple chief Tim Cook at the internet conference in China, which was also attended by the head of Google, Sundar Pichai.	-AFP
Apple chief Tim Cook at the internet conference in China, which was also attended by the head of Google, Sundar Pichai. -AFP
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China’s Digital Economy Shares One Third of GDP

Apple chief Tim Cook at the internet conference in China, which was also attended by the head of Google, Sundar Pichai.	-AFP
Apple chief Tim Cook at the internet conference in China, which was also attended by the head of Google, Sundar Pichai. -AFP

China confirms that its digital economy accounts for nearly a third of gross domestic product, according to a report unveiled in the eastern city of Wuzhen during the fourth World Internet Conference where it declared that Chinese cyberspace is "open" -- but subject to controls for the greater good.

The report released on Monday by the Chinese Academy of Cyberspace Studies, said China's digital economy reached 22.58 trillion yuan ($3.4 trillion) in 2016. That figure is second only to the United States and accounts for 30.3 percent of the country's overall economy, according to the report.

The report assessed global internet development from a number of factors including industry capacity and "governance", China's code word for restrictions.

"China's experience suggests that both factors are crucial to a sound development of the internet that aims to serve the fundamental interests of the people," Xu Yunhong, an official from the academy, told a news conference in Wuzhen.

The three-day conference, which closes Tuesday, was set up to counter western criticism of its internet restrictions, which include blocking Facebook, Twitter and other foreign platforms, and bans on a range of content deemed politically threatening to the Communist Party.

China has cracked down even harder this year, including enacting new rules requiring foreign tech companies to store user data inside the country, imposing fresh content restrictions.

Participants at the Wuzhen conference enjoyed unrestricted internet access during the conference.

Despite criticism, Apple Inc.’s Tim Cook and Google’s Sundar Pichai took part in the conference this year, demonstrating the huge scale of the digital market in China.

Apple has been criticized for its cooperation with China and removing applications such as Skype from its digital store, which ensures the security of Internet communication. Google is believed to be seeking to return to China after withdrawing from it years ago because of disagreement over censorship and its cyber attacks.

Tim Cook and Sundar Pichai appeared to avoid criticism at Wuzhen, and the representatives of the two companies did not respond to questions from the French press for more information.



Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Set for Steepest Weekly Decline in Two Years as Risk Subsides

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices rose on Friday though were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.

Brent crude futures rose 50 cents, or 0.7%, to $68.23 a barrel by 1036 GMT while US West Texas Intermediate crude gained 49 cents, or nearly 0.8%, to $65.73.

During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire.

That put both contracts on course for a weekly fall of about 12%.

"The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah.

"The market also has to keep eyes on the OPEC+ meeting – we do expect room for one more month of an accelerated unwinding basis balances and structure, but the key question is how strong the summer demand indicators are showing up to be."

The OPEC+ members will meet on July 6 to decide on August production levels.

Prices were also being supported by multiple oil inventory reports that showed strong draws in the middle distillates, said Tamas Varga, a PVM Oil Associates analyst.

Data from the US Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.

Meanwhile, data on Thursday showed that the independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week.

Additionally, China's Iranian oil imports surged in June as shipments accelerated before the conflict and demand from independent refineries improved, analysts said.

China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day (bpd) of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.