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.



Egypt Quarterly Current Account Deficit Eases to $2.1 Billion on Higher Remittances

A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
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Egypt Quarterly Current Account Deficit Eases to $2.1 Billion on Higher Remittances

A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)
A man walks in front of the new headquarters of Central Bank of Egypt, in Cairo, Egypt, November 3, 2024. (Reuters)

Egypt's current account deficit narrowed to $2.1 billion in January to March 2025 from $7.5 billion in the same period a year earlier, the central bank said on Tuesday.

The central bank attributed the slimmer deficit to the increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to higher tourism revenue.

Oil exports declined to $1.2 billion, from $1.4 in the year earlier, while imports of oil products rose to $4.8 from $3.4 billion.

Egypt has sought to import more fuel oil and liquefied natural gas this year to meet its power demands after disruptions to gas supply led to blackouts over the last two years.

Concerns over supplies increased after the pipeline supply of natural gas from Israel to Egypt decreased during Israel’s air war with Iran last month.

Revenues from the Suez Canal, declined to $0.8 billion in the third quarter of the country’s financial year, from $1 billion the same time a year ago, as Yemeni Houthis' attacks on ships in the Red Sea continued to cause disruption.

The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.

Meanwhile, Egypt’s tourism revenues reached $3.8 billion, compared to $3.1 billion in the same period in 2023/24.

Remittances from Egyptians working abroad increased to $9.3 billion, from $5.1 billion. The increase in remittances has helped to reduce the wider trade deficit.

Foreign direct investment hit $3.8 billion, compared to $18.2 billion in the same quarter a year before.

Egypt has suffered an economic crisis exacerbated by a foreign currency shortage, which forced it to undergo economic reforms under an $8 billion IMF program that included allowing its pound to depreciate sharply last year.